WIESBADEN (dpa-AFX) - SGL Carbon SE (SGLFF.PK) Tuesday said it has decided, with the approval of the Supervisory Board, to restructure the loss-making Carbon Fibers business unit.
SGL Carbon will significantly reduce the business activities of Carbon Fibers and focus on a profitable core.
Individual solutions are being developed for all Carbon Fibers sites, including the closure of unprofitable sites.
On February 23, 2024, SGL Carbon had already announced that it was reviewing all strategic options for the Carbon Fibers business unit. The joint venture Brembo SGL Carbon Ceramic Brakes S.p.A. (BSCCB), which is allocated to the Carbon Fibers business unit for accounting purposes, is not affected by the restructuring.
A complete sale of the Business Unit Carbon Fibers was intensively evaluated, but is no longer considered feasible, the company said.
Dr. Stephan Bühler, the responsible member of the Board of Management of SGL Carbon, explains: 'We are in the initial phase of restructuring the Business Unit Carbon Fibers. We therefore ask for your understanding that we are currently unable to provide any specific details regarding individual site closures and the exact restructuring period. Our goal is to quickly begin the implementation in order to create clarity for our employees. We will begin the implementation of the restructuring as quickly as possible in order to contain the operating losses of CF and the associated impact on the entire SGL Carbon in the short term.'
The company is expecting one-time cash effects in the amount of approximately €50 million over the next two years due to the extensive restructuring.
Based on preliminary figures, Carbon Fibers generated sales of around €210 million in fiscal year 2024, compared to previous year's €224.9 million.
According to preliminary figures, the negatively adjusted EBITDA of Carbon Fibers, excluding the share of the earnings of the joint venture BSCCB, amounted to around minus €27 million in fiscal year 2024, compared to previous year's minus €10.9 million.
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