Semperit signals further potential closures

Vienna – Austrian rubber group Semperit AG has signalled the potential close-down of production plants as it continues 2018 as its “transition year”.

In its first-half financial report on 23 Aug, Semperit said “considerable one-off charges” were not off the table for the company, which is conducting a major transformation project through to 2020.

“Considerable one-off charges" could mean closure of further plants,” Stefan Marin, head of investors relations at Semperit explained to ERJ.

The company-wide optimisation process will cover all Semperit segments, including Sempermed medical unit, Sempertrans conveyor belt manufacturing, Semperform construction materials and Semperflex hose production.

“There are a number of sites we are currently studying but Semperflex’s plant in Italy is top priority at this moment,” according to Marin. The investigation, he pointed out, will not necessarily lead to a shutdown.

The Semperflex Roiter plant in Rovigo, Italy produces customised special solutions for individual applications of industrial hoses up to a nominal diameter of 609 mm.

Semperit launched its major restructuring earlier this year in response to weak results last year.

The company announced in June that it was shutting down a 120-employee production site for conveyor belts in China as part of the transformation programme.

Semperit expects to complete the transformation by the end of 2020 and has set a target of 10% EBITDA margin post-restructuring.