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DGAP-News: Salzgitter AG: Salzgitter AG 2015 Reorganization Program - Negotiations on 'Pact for the Future' (Zukunftsvertrag)

DGAP-News: Salzgitter AG: Salzgitter AG 2015 Reorganization Program - 
Negotiations on 'Pact for the Future' (Zukunftsvertrag) concluded and viable 
business concept agreed for the Peine location 

DGAP-News: Salzgitter AG / Key word(s): Miscellaneous
Salzgitter AG: Salzgitter AG 2015 Reorganization Program -
Negotiations on 'Pact for the Future' (Zukunftsvertrag) concluded and
viable business concept agreed for the Peine location

16.09.2013 / 17:47

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The business environment of the Salzgitter Group has been burdened by the
structural crisis in the European steel industry for a considerable period
of time. Increasingly fierce competition, emanating above all from the
protracted capacity underutilization of numerous producers in southern
Europe, has exerted a great deal of pressure on the businesses of steel
producing companies. Peiner Träger GmbH has been the hardest hit, as its
sectional steel products are processed by the construction industry that is
in deep recession in many southern European countries.

The 'Salzgitter AG 2015' reorganization project, launched in October 2012,
is aimed at stabilizing the Salzgitter Group's competitiveness. Its goal is
to adjust the structures and workflows of the Group as a whole to the
challenging conditions in the sales markets. Part of the program also
entails the intention of reducing the 25,000 jobs in the Group by more than
1,500.

With a view to implementing personnel-related measures, the Executive Board
and employee representatives of Salzgitter AG, accompanied by IG Metall,
conducted negotiations on a 'Pact for the Future' that have now been
concluded. The Pact places special emphasis on defining the available
personnel management instruments with the aim of achieving personnel
adjustments that are as socially compatible as possible.

A viable business concept, taking account of the specific market conditions
that pose a threat to the company's survival, was agreed for the Peine
location. Peine's production capacity was scaled back to one million tons a
year, and more than 800 jobs will be safeguarded.

The conclusion of the negotiations marks the fulfillment of the
prerequisites for introducing the operational measures in the Group
companies. These measures have already been defined at the level of the
individual companies, and implementation is to take place swiftly.
'While the negotiations on the Pact for the Future and the business concept
for the Peine site were extremely challenging, they are decidedly
constructive and were conducted with a successful outcome in mind', said
CEO Prof. Dr.-Ing. Heinz Jörg Fuhrmann. The agreements reached reflect the
basic consensus between the Executive Board and the employee
representatives that the swift implementation of the 'Salzgitter AG 2015'
project is an absolute necessity for stabilizing the Salzgitter Group's
competitiveness while safeguarding the company's independence and as many
jobs as possible at the same time.

Contact:
Bernhard Kleinermann
Group Spokesman
Salzgitter AG
Corporate Communication
Tel.: + 49 5341 21 2300
Fax: + 49 5341 21 2302


Markus Heidler 
Deputy Head of Investor Relations
Salzgitter AG
Eisenhüttenstraße 99
38239 Salzgitter
Phone +49 5341 21-6105
Fax   +49 5341 21-2570
E-Mail ir@salzgitter-ag.de


End of Corporate News

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16.09.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:    English                                                     
Company:     Salzgitter AG                                               
             Eisenhüttenstraße 99                                        
             38239 Salzgitter                                            
             Germany                                                     
Phone:       +49 5341 21-01                                              
Fax:         +49 5341 21-2727                                            
E-mail:      info@salzgitter-ag.de                                       
Internet:    www.salzgitter-ag.de                                        
ISIN:        DE0006202005                                                
WKN:         620200                                                      
Listed:      Regulierter Markt in Frankfurt (Prime Standard), Hannover;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,        
             Stuttgart                                                   
 
 
End of News    DGAP News-Service  
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230526 16.09.2013