SGL Group streamlines Organizational Structures - Implementation of SGL05 on track

12-10-2013 SGL Group streamlines Organizational Structures - Implementation of SGL2015 on track Optimization of organizational and administrative structures within the framework of SGL2015

Up to 300 positions affected group-wide

Socially responsible implementation intended

Wiesbaden, December 10, 2013. SGL Group The Carbon Company announced today details of the organizational restructuring which is one part of the cost savings program SGL2015. The restructuring focuses on streamlining the management structures and the corporate and support functions. The global P/L responsibility of the Business Units will be strengthened further. The planned restructuring will affect up to 300 positions group-wide, with approximately half of them in Germany.

Additionally, indirect spend in the fields of sales, general & administration (SG&A) will be reduced by one third, from 90 million in 2012 to 60 million in 2015 as part of the organizational restructuring.

Overall, the SGL2015 cost savings program is designed to achieve a total of 150 million cost savings by the end of 2015, thereof 50 million already realized in 2013.

Dr. J rgen K hler, designated CEO, SGL Group: We are on track with the implementation of our cost savings program SGL2015. With this set of comprehensive measures we will make SGL Group more efficient and stronger, and strategically position the Company for the future. It is our top priority to implement the defined measures in order to generate the planned 150 million in cost savings by end of 2015.

Strengthening Business Units and streamlining administrative functions

Based on in-depth analyses of the structures and operating processes, a set of measures have been developed to adjust the organization in order to simplify and increase the efficiency of management structures and processes. As already communicated, the Board will be reduced from five to three members in the context of the generation change. Furthermore, the number of direct reports to the Board of Management will be reduced by almost half to around 20 positions. The Business Units will be given further global P/L responsibility, and the support functions within the Business Units will be streamlined. However, the Board will supervise the business activities on the basis of the three Business Areas which will continue to exist as reporting segments. The Corporate Functions will also be adjusted and clearly separated in their tasks from the Shared Service functions that support the Business Units.

Focus on socially responsible downsizing

The measures in connection with the organizational restructuring will affect up to 300 jobs across the Group, most of which are located in Europe (240) and about 150 in Germany alone. Another 37 jobs will be reduced in North America and 16 in Asia. Every effort will be made to achieve the necessary downsizing in a socially responsible manner. The available exit options have been developed and agreed with the works council entities.

About SGL2015

The cost savings program SGL2015 and the successful refinancing were initiated by the outgoing CEO Robert Koehler, who will leave the Company at the end of this year for reasons of age. Apart from the organizational restructuring the program consists of the optimization of the global production network as well as the streamlining of the Group's portfolio. Through SGL2015, the Company addresses the challenging economic environment, which is characterized in particular by an unsatisfactory price development in graphite electrodes, a cyclical and structural downturn in graphite specialties and losses caused by delays in the development and start-up phases in the Business Area Carbon Fibers & Composites. The objective of the program is to sustainably strengthen SGL Group's competitiveness while enhancing the profitability of the Group.

About SGL Group - The Carbon Company SGL Group is one of the world's leading manufacturers of carbon-based products and materials. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group's core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group's carbon-based materials combine several unique properties such as very good electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to industrialization in the growth regions of Asia and Latin America and increased substitution of traditional with innovative materials, there is a growing demand for SGL Group's high-performance materials and products. Products from SGL Group are used predominantly in the steel, aluminum, automotive and chemical industries as well as in the semiconductor, solar and LED sectors and in lithium-ion batteries. Carbon-based materials and products are also being used increasingly in the wind power, aerospace and defense industries.

With 45 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, SGL Group is a company with a global presence. In 2012, the Company's workforce of around 6,700 employees generated sales of 1,709 million. The Company's head office is located in Wiesbaden.

Further information about SGL Group can be found online at: www.sglgroup.com.

Important note: This press release may contain forward-looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward-looking statements involve known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from these forwa

LINK:	http://www.sglgroup.com/cms/international/press-lounge/news/2013/12/12...
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