Home » Markets & News » Company News » SGL Group: Closure of Lachute Plant in Canada

SGL Group: Closure of Lachute Plant in Canada

This decision is a result of the company’s global realignment strategy and cost savings program “SGL2015”, whereby the objective is to sustainably enhance SGL Group’s competitive position and simultaneously improve its profitability. The operations in Lachute will begin to wind down at the end of the year with expected completion within the first quarter of 2014. Approximately 110 employees will be impacted by the closure. The Lachute facility produces graphite electrodes, whose world market has been suffering from sluggish global demand for almost 5 years. With the cost savings program “SGL2015”, SGL Group responds to the difficult market conditions, characterized especially by unsatisfactory price developments in graphite electrodes, a cyclical downturn in its graphite specialties business as well as ongoing losses in the Business Area Carbon Fibers & Composites due to delays in the development and start-up phase. The package of measures comprises the global production network, the organizational structure as well as the Group’s portfolio and is targeted to achieve cost savings totaling approximately EUR 150 million by the end of 2015, based on the actual costs for 2012. Of these total savings, EUR 50 million will already be realized in 2013. In connection with the program, there will be non-recurring expenses and extraordinary write-downs that will be recognized in accordance with IFRS in a timely manner, most of which should be accounted for with the 2013 annual financial results already. In this context, SGL Group needs to write-down fixed assets in Lachute in the amount of approximately EUR 25 million in the third quarter 2013.


Related Supplier

Profiles to follow