Salzgitter steel company took up the restructuring of personnel and production

The German steel company Salzgitter AG, suffering in 2013, plans to cut the number of members of its executive council. These measures are aimed at restoring the competitiveness of the company after a serious decline in demand for metal products in the European market, which provoked a collapse of prices. In some cases, prices for a certain type of metal rolling fell below the cost.

Salzgitter plans to reduce the number of members of the board of directors from five to three. So Wolfgang Eging and Hinz Groshka, now responsible in the company for energy and marketing, will retire in January next year, the company officially announced this in the company. A number of reorganization procedures will also occur. It is expected that in the company under the management of the new management committee five divisions will be created: flat rental, thick sheet and varietal steel, energy, trade and technology.

In August of this year, in a steel company, by 26.5 percent belonging to the authorities of Lower Saxony, they announced plans to reduce more than 1,500 jobs. This will save more than 200 million euros ($ 270 million) per year. In the nine months of the current financial year, the Salzgitter forecast for profit has decreased three times already, the last time it was reduced on August 5. The reason for this is the lack of orders for products, especially pipe.

Salzgitter notes that the creation of an understandable and transparent managerial structure along with the state reduction program will ensure the independence of the company and allow you to maintain the maximum possible number of jobs.

This year, Salzgitter shares at auction in Frankfurt fell by 21 percent, despite the fact that the MDAX index increased by 26 percent.