Salzgitter : focuses on overcoming the corona crisis, reduces production at some locations

The coronavirus pandemic is presenting both the society and the economy with previously unknown challenges. Of course, Salzgitter AG is also affected. In recent weeks we have taken a large number of measures to protect the health of our employees as well as to minimize the effects on the company as a whole.

The precautions to minimize risk and guidelines on protecting employees as well as customers, suppliers and service providers recommended by the German Federal government, the Robert Koch Institute and the World Health Organization (WHO) in order to contain the impact of the COVID-19 pandemic have been implemented immediately and strictly adhered to. Salzgitter AG's well-equipped occupational health service is in direct contact with health authorities and local hospitals and is at all times well informed and up to date with the current situation regarding the spread of the epidemic. Task forces have been established at our individual Group companies and an intensive internal exchange of information is taking place.

Salzgitter AG Executive Board Chairman Professor Dr.-Ing. Heinz Jörg Fuhrmann commented: 'We are particularly focused on the health of our employees. At the same time, we are also endeavoring to continue business operations as far as possible at our subsidiaries and associate companies in order to remain a reliable partner to our customers in this phase. Because one thing is certain: There will come a time after the corona crisis. Together we will find ways to overcome this difficult period without damaging our future professional and private lives.'

As part of a long value chain that extends from raw material and energy procurement via the production of steel through to the processing of a wide range of high-value products for end users, an essential task is to adapt flexibly to changing market conditions on both the procurement and sales sides. The current economic situation is characterized by great uncertainty, incomplete information and a decline in demand that is to some extent already making itself felt. It will therefore be essential to reduce production volumes at some factory locations.

The Executive Board and Group Works Council have in recent weeks been engaged in an intensive dialog. Yesterday a comprehensive master agreement was concluded covering measures and HR instruments designed to counter the crisis. In view of the diversity of business models within the Salzgitter Group, the emphases will vary. The measures range from targeted mobile working through to paid leave for employees with particular pre-existing health issues. In addition decisions will have to be taken in the short- to medium-term regarding the introduction of short-time working (Kurzarbeit) at some plant sites.

Our particular thanks are due to our employees who especially in this challenging time through their flexibility and prudence are making a major contribution towards maintaining our business operations and safeguarding the stability of the Group.