STS Group AG implements concrete measures as part of its efficiency improvement programme
Hallbergmoos/Munich, December 10, 2019. STS Group AG (GSIN: DE000A1TNU68; www.sts.group) the global system supplier for the automotive industry, listed in the Prime Standard of the Frankfurt Stock Exchange, further substantiated the efficiency enhancement measures already communicated with the presentation of the 9-month figures. In order to maintain strong competitiveness in the challenging European commercial vehicle market, it is planned to close a French plant and relocate the existing projects to other French STS production sites. At the concerned plant, STS currently employs around 80 staff and generates a revenue of around 15 mEUR. The closure would lead to a reduction of fixed costs, allowing savings to be achieved in the Plastics segment already in the financial year 2020. However, the order volume would not be affected due to the relocation.
This project has been presented to the central works council and the legal procedure should be completed by the end of the first quarter 2020. STS Group will keep the market informed of any significant developments, as well as on related one-time expenses.
As announced in the release on the first 9-months of 2019, the company confirms its forecast for the financial year 2019 at the lower end of the bandwidth, which anticipates a decline in revenues of between 4.5 and 9.5% and an adjusted EBITDA margin of between 4.6 and 5.3%.
About STS Group:
STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading system supplier to the automotive industry for soft and hard trim. The Group, which has a history of tradition and expertise dating back to 1934, employs more than 2,500 people and generated revenue of 401,2 mEUR in the 2018 financial year. At its 17 plants in total in France, Italy, Germany, Poland, Mexico, Brazil and China, the STS Group ("STS") produces plastic and acoustic components, such as solid and flexible vehicle trim, noise and vibration-damping materials and entire interior and exterior trim systems. STS is considered a technology leader in the manufacture of plastic injection molding, specialty acoustic products and components from sheet molding compounds (SMC). STS has a strong footprint with plants in China, Europe, Mexico and Brazil. The customer portfolio comprises leading international commercial vehicle and automotive manufacturers.
STS Group AG
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