VIENNA—Semperit A.G. Holding has extended its restructuring program to include its Sempertrans and Semperform business units.
The move represents a new restructuring phase, following the introduction of optimization measures in the Sempermed segment, in response to continuing financial losses.
For its Semperflex and mixingunits, the management board will focus on "accelerating the profitable implementation of the still necessary investment projects" and organic growth.
Restructuring measures will include:
- Optimizing operational production and acquisition processes
- Improving pricing and price-setting processes
- Reviewing the production footprint; and
- Stabilizing and improving operational earnings.
"We have identified significant potentials for an increase in earnings and will initiate appropriate implementation measures from now on," Semperit CEO Martin Fullenbach said in a statement. "With substantial restructuring and complexity reduction, we aim to find new strength and profitability by 2020."
Semperit expects its transformation process to run until the end of 2020 and to enable it to achieve an EBITDA margin of about 10 percent soon after. Fiscal 2018 will, therefore, be "considered as a year of transition."