Ferroglobe Engages with the European Works Council on Proposals to Optimize Its Asset Footprint and Enhance Competitiveness i...
March 29 2021 - 4:15PM
Ferroglobe PLC (Nasdaq:GSM) (the “Company”), one of the world’s
leading producers of silicon metal, silicon-based alloys and
manganese-based specialty alloys, announced today that it has
engaged with the European Works Council (“EWC”) to discuss details
of proposals for an asset optimization program designed to
safeguard its long-term future in Europe. Through this process, the
Company is seeking to reduce or cease production at some of its
sites in Europe.
Through a broader strategic turnaround plan, Ferroglobe seeks to
enhance its financial position and overall competitiveness and
ensuring the optimal asset footprint is a critical pillar driving
this strategy. During the meeting, which marked the official start
of the workers council consultation process with the EWC,
Ferroglobe shared initial proposals about its strategic plan. This
plan is focused on several areas for improvement, including:
- Adjusting our asset footprint to align production capacities
and demand by focusing on the most technically advanced,
operationally flexible and financially competitive sites;
- Focusing on the sites which support the broader commercial
strategy and shift in product mix;
- Deploying resources at sites which provide significant
opportunity to make further production cost improvements to ensure
competitiveness through the cycle; and
- Trimming down costs with further efficiency and reduction in
overhead.
The planned adjustment of production capacity is a further step
to adjust our fixed cost structure and is a continuation of similar
actions that have recently been taken in the United States and
Norway to curtail or permanently stop production. While we are
scaling back our overall production capacity, this effort ensures
greater utilization at our remaining assets, which contributes to
the improved production costs. The future asset footprint ensures
sufficient capacity to serve expected demand levels, and meet our
customer’s specific needs.
Marco Levi, Ferroglobe’s Chief Executive Officer commented, “The
commencement of our discussion with the European Works Council
comes after months of in-depth analysis and deliberation around the
optimal asset footprint for Ferroglobe to provide profitability and
competitiveness through the cycle. Potential adjustment to our
production, subject to a social procedure with the EWC, supports
our objective of bolstering our overall cost position and ability
to service customers more competitively across Europe.” Dr. Levi
added, “In order to turn around Ferroglobe, we have to take some
actions that are difficult, yet necessary. Our financial
performance over the past few years highlights the need for change
and the actions we are proposing are critical steps in turning
around the Company, both operationally and financially. We are
confident that the proposed actions will make our business stronger
and secure a successful future for our platform in Europe.”
About Ferroglobe
Ferroglobe is one of the world’s leading suppliers of silicon
metal, silicon-based 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. 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.
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.
INVESTOR CONTACT:Gaurav
MehtaExecutive Vice President - Investor
Relationsinvestor.relations@ferroglobe.com
MEDIA CONTACT:Cristina Feliu
RoigExecutive Director – Communications & Public
Affairscorporate.comms@ferroglobe.com
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