Corporate News

As announced on October 7, the sole member of the Executive Board of ALEXANDERWERK AG, Jürgen Kullmann, has started with the implementation of the restructuring program.

Remscheid, November 2, 2009 – As announced on October 7, the sole member of the Executive Board of ALEXANDERWERK AG, Jürgen Kullmann, has started with the implementation of the restructuring program. The aim of the various measures is to create a flexible and innovative, medium-sized group of companies. To this end, sales and research and development (R&D) are to be strengthened, while structures in other areas are to be streamlined. Jürgen Kullmann explains in this regard: “It is indispensable to create structures typical for medium-sized enterprises in the company. We have therefore agreed to cut 25 jobs across Alexanderwerk AG and its subsidiary AlexanderSolia GmbH. This will give us the necessary leeway to transform the R&D and sales divisions into powerful units.”

Alexanderwerk already has some promising innovations in the pipeline. However, in order to remain competitive, considerable efforts are still needed with the aim of achieving a significantly higher rate of innovation. The restructuring program therefore envisages investments in international production standards. Accordingly, EUR 600,000 alone are to be invested in the company’s machinery. The principal banks of Alexanderwerk AG have already indicated that they would support the restructuring by providing additional debt capital, which will serve to ensure long-term liquidity. The aim is to provide these funds through a corresponding guarantee from the state of North Rhine-Westphalia. As part of an overall financing package, some shareholders have pledged to participate in the restructuring program.

On the way to financial restructuring, however, the company is still struggling with legacy issues (in the form of continued salary payments that may still have to be made up). In this context, the Federal Labor Court (BAG) recently issued a ruling that could have far-reaching effects on ALEXANDERWERK AG. The company initially filed a constitutional complaint against this. However, the Executive Board does not want to wait for judicial clarification and strives to coordinate all interests already now: “It is important to pave the roadmap into the future for Alexanderwerk AG already now. Together with all parties involved, including the Industrial Union of Metalworkers (IGM), we are therefore working on an amicable solution to these contaminated sites. The first talks will take place as early as next Thursday.”