HOMAG Group and Works Councils Reach Agreement on the Restructuring of BÜTFERING and TORWEGGE
- Agreement on reconciliation of interests and social compensation plan in both cases
- Restructuring progressing as planned
- Fewer layoffs than initially expected
The management of HOMAG Group has reached agreements with the works councils of the subsidiary companies BÜTFERING Schleiftechnik GmbH, Beckum, and TORWEGGE Holzbearbeitungsmaschinen GmbH, Löhne, as well as with the Group's works council on the terms for the planned restructuring. A reconciliation of interests and a social compensation plan have been agreed on for both companies.
HOMAG Group AG's CEO Dr. Markus Flik commented positively on the outcome of the negotiations: 'The agreements that have now been reached are a further important step in our restructuring effort, which so far is proceeding as planned. Together with the works councils, we were able to find a viable solution for all participants. With this move, we are making the HOMAG Group fit for the future, improving our competitiveness and strengthening our profitability.' The restructuring measures currently underway are aimed to reduce the number of the production locations in Germany from eleven to eight.
Hannelore Knowles, chairwoman of the Group's works council, is also satisfied with the achieved result: 'Under the given circumstances, our top priority was to ensure that as many employees as possible keep their jobs. For the remaining employees, we wanted to achieve the most socially acceptable transition. We succeeded in doing this with the agreements that have been reached.'
The company BÜTFERING Schleiftechnik GmbH, Beckum, is to be linked to WEEKE Bohrsysteme GmbH, Herzebrock-Clarholz, another subsidiary of the HOMAG Group, as planned. The objective of this affiliation is to improve the competitiveness of the wood sanding machine business by a maximum use of synergies in all areas. The traditional brand BÜTFERING will be maintained. WEEKE will take on 62 employees of BÜTFERING, thus retaining the majority of the workforce. With the intended sale of the metalgrinding business, the buyer is to take over another 17 employees. The agreement concluded provides for the remaining 18 employees to join a transfer company.
The restructuring measures at TORWEGGE will affect the remaining 73 of the initial 90 employees, all of whom will be also entitled to join a transfer company. The restructuring of TORWEGGE is proceeding according to plan and will be concluded within 2012.
'As it is turning out, we will be able to realize the planned reduction of about 180 positions with significantly fewer layoffs than initially expected, ' says CFO and board member for human resources Hans-Dieter Schumacher. Once the restructuring has been completed, it is expected that the HOMAG Group will generate a sustainable improvement in operative EBITDA (before expenses from employee participation and before extraordinary expenses) ranging between EUR 6 and 8 million each year from 2013 onwards.
This press release contains certain statements relating to the future. Future-oriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as 'believes', 'estimates', 'assumes', 'forecasts', 'intend', 'may', 'will', 'should' or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this announcement, it cannot be guaranteed that the same will hold true in the future.
Homag Group AG
With its 17 specialized production companies, 21 group sales and service companies and approximately 60 exclusive sales partners worldwide, HOMAG Group AG's position as a complete system supplier is unique. Backed by a workforce of some 5,100 employees, the company sees itself as the leading global manufacturer of plant and machinery for the woodworking and wood materials processing industry and cabinet makers active in the production of furniture and construction elements as well as timber frame houses. The group also offers its customers a wide range of services, including software and consulting services. HOMAG Group AG's shares have been listed on the Prime Standard of the Frankfurt stock exchange since July 13, 2007.