Ferroglobe Provides Corporate Update
October 04 2019 - 9:22AM
Ferroglobe PLC (NASDAQ:GSM) (“Ferroglobe” or the “Company”), the
world’s leading producer of silicon metal and a leading silicon-
and manganese- based specialty alloy producer, announced today the
following corporate developments.
Disposal of Non-Core Assets
Ferroglobe has successfully completed and closed
two previously-announced asset sales.
On September 28, 2019, Ferroglobe closed on the
sale of its subsidiary Ultracore Polska ZOO, which manufactures
cored wire in Poland, to an affiliate of Cedie, S.A. for $3.5
million. Additionally, the Company’s subsidiary Silicon Smelters
(Pty.) Ltd. has completed the sale of its remaining timberlands in
South Africa to Mphome Agric (Pty.) Ltd., for net proceeds of ZAR
130 million ($8.58 million). This transaction was finalized, and
the proceeds received, on October 4, 2019.
Appointment of Chief Operating Officer
and Deputy CEO
Ferroglobe is pleased to announce the
appointment of Benoist Ollivier, PhD as Chief Operating Officer and
Deputy Chief Executive Officer, effective October 1, 2019. Dr.
Ollivier will work closely with division managers to set
operational strategy and oversee its execution. He will be in
charge of a number of initiatives supporting the Company’s
near-term focus on cash generation, including cost savings and
efforts to release working capital. Dr. Ollivier holds a PhD in
Mineral Chemistry and has over twenty-five years of experience in
the industry. He has been a senior member of the Ferroglobe and
Grupo FerroAtlántica management teams since 2005, with extensive
experience in both R&D and production management in Europe as
well as overseas. Most recently, he has served as EVP - Operations
for Europe, Africa and Asia and EVP - Technology and
R&D.
Cost Reduction and Working Capital
Release Initiatives
Given the current market environment, Ferroglobe
is making further adjustments to its global production platform. In
addition to previously announced production curtailments, the
Company is taking steps to extend or bring forward planned outages
over the fourth quarter at several facilities in an effort to
streamline operations, adapt production to reduced demand, and
release working capital. The following is a summary of these
initiatives.
Europe and South Africa
- In France, two furnaces producing ferrosilicon in
Chateau-Feuillet were idled on September 30, 2019, and a third, in
Laudun, will be idled on November 15.
- Also in France, three silicon furnaces will be idled on October
7 - two in Montricher and one in Laudun.
- As a reminder, the silicon plant in Polokwane, South Africa has
been idled since August 1st and silicon production has been reduced
at the plant in Sabon, Spain.
North America
- The Bécancour, Québec joint venture facility producing silicon
metal has idled its furnace #4 since August 30, 2019 and its
furnace #3 since September 30.
- The Bridgeport, Alabama facility (producing ferrosilicon) was
idled on September 1. Customer orders from this plant have been
shifted to the Beverly, Ohio facility in order to optimize
utilization and economics.
The foregoing shutdowns are planned to last for
a period of four to six months. Ferroglobe will continue to monitor
market conditions to determine when the subject furnaces should be
restarted. A review of manganese alloys production adjustments is
also underway. These operational changes complement ongoing
corporate initiatives including, but not limited to, the relocation
of Ferroglobe’s headquarters from London to Madrid.
Pedro Larrea, Ferroglobe’s CEO, commented,
“Today’s announcements reinforce management’s focus on adapting to
the evolving market and taking actions aimed at enhancing and
optimizing our production footprint and overall competitiveness,
with a strong emphasis on generating cash. As we look ahead, we
will continue to monitor supply and demand dynamics across our
product portfolio and take further actions as required to ensure a
return to profitability and effective management of working
capital.” Mr. Larrea added, “Implementation of such a plan requires
global coordination and swift action across various functions. The
appointment of Benoist as COO and Deputy CEO not only helps ensure
the successful execution of current initiatives but sets the
foundation for greater oversight of our global platform. Benoist
has significant experience in and deep knowledge of our business
and has been an integral part of the organization since the
creation of Ferroglobe. I have every confidence that he will
leverage his knowledge and relationships very effectively.”
About Ferroglobe
Ferroglobe PLC is one of the world’s leading
suppliers of silicon metal, silicon- and manganese- based specialty
alloys and ferroalloys, serving a customer base across the globe in
dynamic and fast-growing end markets, such as solar, automotive,
consumer products, construction and energy. The Company is based in
London. For more information, visit
http://investor.ferroglobe.com.
Forward-Looking Statements
This release contains “forward-looking
statements” within the meaning of U.S. securities laws.
Forward-looking statements are not historical facts but are based
on certain assumptions of management and describe Ferroglobe’s
future plans, strategies and expectations. Forward-looking
statements often use forward-looking terminology, including words
such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“forecast”, “guidance”, “intends”, “likely”, “may”, “plan”,
“potential”, “predicts”, “seek”, “will” and words of similar
meaning or the negative thereof.
Forward-looking statements contained in this
press release are based on information currently available to
Ferroglobe and assumptions that management believe to be
reasonable, but are inherently uncertain. As a result, Ferroglobe’s
actual results, performance or achievements may differ materially
from those expressed or implied by these forward-looking
statements, which are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors
that are, in some cases, beyond Ferroglobe’s control.
Forward-looking financial information and other
metrics presented herein represent Ferroglobe’s goals and are not
intended as guidance or projections for the periods referenced
herein or any future periods.
All information in this press release is as of
the date of its release. Ferroglobe does not undertake any
obligation to update publicly any of the forward-looking statements
contained herein to reflect new information, events or
circumstances arising after the date of this press release. You
should not place undue reliance on any forward-looking statements,
which are made only as of the date of this press release.
CONTACT:
Gaurav Mehta EVP – Investor Relations
Email: investor.relations@ferroglobe.com
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