Kirn. Following a downturn in revenue recorded by the primary customer markets covering chemicals and mechanical engineering, SIMONA has seen a marked decline in order intake within its European semi-finished products business in recent weeks. Industry associations of these two key sectors within this line of business also predict a reduction in revenue and production output for the year as a whole.

Against this backdrop, SIMONA has therefore initiated a package of measures aimed at streamlining its costs. This includes the reduction of overtime and the introduction of short-time work at its headquarters in Kirn, alongside a thorough assessment of non-personnel costs and staff recruitment. Short-time work will commence on 5 September 2019 and is limited to 31 December 2019. A fast-track company agreement governing the introduction of these measures was concluded with the works council. The short-time work agreement will not apply to the company's pipes and fittings as well as rods and welding rods business, areas in which order intake remains solid. SIMONA will conduct a monthly assessment of the necessity for short-time work.

"We are unable to change the current economic situation, but we can take appropriate cost-cutting measures at an early stage. At the same time, we want to keep the burden on our employees to a minimum. The Management Board will also waive part of its salary, and we will also ask senior executives to do so. The aim is to set an example. Even while short-time work is in place, we are fully focused on delivering value for our customers and are committed to continuously developing our range of products and services. We hope that the general economic conditions will improve next year and that the measures can then be lifted again," says Matthias Schönberg, CEO of SIMONA AG.

"From today's perspective, we are maintaining the Group's revenue and earnings targets for the 2019 financial year. Orders within the area of pipes and fittings remain stable, as does business at our US plants. While we are likely to fall just short of our revenue targets in Asia, this region as a whole is expected to generate positive earnings. Thanks to our consistent approach to internationalisation, we are able to offset declines in individual regions," explains Schönberg.