SGL Group has announced the closure of its Italian graphite electrodes plant in Narni, Umbria, and of the related administration office in Lainate.

The closure is part of the company’s global realignment strategy and the SGL2015 cost savings programme.

Optimising its capacities

The market for graphite electrodes, which are used in the recycling of scrap steel, has come under pressure due to unfavourable price developments and weak demand in particular, the group reports.

In the coming days, discussions with the unions about a redundancy scheme will be initiated and the wind”down of the site, which is home to approximately 120 jobs, will begin.

Following the closure of the graphite electrodes plant in Lachute, Canada, SGL Group has now taken a further step towards optimising its capacities across the company, securing the group’s cost position.

Focus on cost savings

The implementation of the SGL2015 cost savings programme, which was launched in August 2013, is progressing according to the plan.

The company has already implemented numerous measures for the streamlining of its global production network and organisational structure, as well as the optimisation of its portfolio.

As a result, SGL Group is confident that it will achieve its planned cost savings target of around Euro 150 million in total by the end of 2015.

SGL Group

SGL Group is a leading manufacturer of carbon”based products and materials with its portfolio ranging from carbon and graphite products to carbon fibres 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.

Due to industrialisation 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, the group reports.

With 44 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.

http://www.sglgroup.com/