DGAP-Adhoc: Progress-Werk Oberkirch AG: PWO holds intense discussions on improving the Oberkirch location's competitiveness

Oberkirch, December 16, 2019 - In light of the ongoing weakness in the automotive industry, PWO continues to work systematically on cost savings and efficiency improvements, particularly at its Oberkirch location. The current focus is on personnel expenses, among others. At the end of September, PWO withdrew from the metal and electrical industries employers' association effective from December 31, 2019 in order to be able to strengthen the competitiveness of the Oberkirch location through more precisely tailored supplementary collective agreements.

Membership is now being resumed, and at the same time IG Metall has pledged its willingness and strong support to subsequently find and conclude new supplementary collective agreements. The new collective agreements are to be found and agreed to no later than the end of the first quarter of 2020.

The goal remains to achieve a savings volume in the mid single-digit million range as early as the 2020 financial year. The agreement is to become fully effective in fiscal year 2021.

This plan will allow PWO to avoid the burdens associated with the conclusion of a company collective agreement previously planned, especially with regards to maintaining harmony at the plant.

Progress-Werk Oberkirch AG
The Management Board

End of ad hoc announcement