Semperit restructures to strengthen focus on industrial strategy

Vienna – Semperit AG is launching a restructuring programme to strengthen focus on its industrial strategy, the Austrian group announced 20 June.

The cornerstones of the strategy, said Semperit, are the sale of Sempermed gloves business; the acquisition of the Rico Group; the strengthening of hose production with the expansion in Czechia; and continuing to focus on industrial applications and technical solutions based on elastomers.

To achieve this, Semperit said it is implementing organisational adjustments and dividing the currently existing segment structure into two divisions.

As it stands, the Austrian group has a medical sector – Sempermed – which is currently being divested and an industrial sector, which includes Semperflex hose production unit; Sempertrans conveyor belts; Semperform gasket and sheeting unit; and Semperseal seals manufacturing business.

Under the new structure, an Industrial Applications division will be created to focus on hydraulic and industrial hoses as well as profiles “with highly efficient manufacturing and cost leadership”.

The Engineered Applications division will comprise of handrails for escalators, conveyor belts, cable car rings, other engineered elastomer products, as well as the Rico Group.

The division will focus on customised technical solutions, said Semperit in a statement.

The new structure will focus two business areas and will result in “leaner organisation”, it added.

Semperit expects cost savings from the restructuring will to be “significantly beyond the overhead cost reduction measures already being implemented.”

The new structure will also see a change in the executive board and a redistribution of responsibilities.

Gerfried Eder, managing director & director sales of the Semperflex, has now been appointed as a member of the executive board and chief industrial officer, effective 1 July.

He has been with Semperit since 2000 and has held various management positions within the Semperit Group.

According to Semperit, Eder and his team developed hose manufacturing into “the most important production branch in terms of revenue and profitability” in the group over the recent years.

Eder will also assume responsibility for the Industrial Applications division.

CEO Karl Haider will be responsible for the Engineered Applications division, while the responsibilities of CFO Helmut Sorger will remain unchanged.

Chief operating officer since January 2020, Kristian Brok is ending his contract prematurely on 30 June to “pursue a new professional challenge.”