Leaner, better interconnected, more digital
Aurubis’ cost efficiency and investment strength have to be secured in the long term – even in an uncertain economic environment. This is why Aurubis established the Performance Improvement Program (PIP).
The fact is, Aurubis is in a challenging, internationally competitive environment. Treatment and refining charges in particular (an important driver of earnings for the company) have come under significant pressure and will stay that way for the foreseeable future. Moreover, the company’s personnel and administrative costs have risen significantly in the last several years, causing earnings before taxes to decline. At the same time, Aurubis also has to be in a position to invest in the sites in the future. As a result, Aurubis is taking action now and has established the Performance Improvement Program (PIP), which is focused on reducing costs and increasing throughput to generate a contribution to earnings of at least € 100 million until fiscal year 2022/23.
In the course of a careful review, the company has identified, evaluated, and in some cases already implemented about 350 individual measures. “The PIP measures are appropriate and important,” emphasizes CFO Rainer Verhoeven. “Global conditions have intensified considerably for Aurubis. And the coronavirus pandemic shows how quickly the economic environment can change – even if the program, with its special focus on cost reduction, started before the outbreak of the pandemic.”
The PIP measures are appropriate
and important. The global conditions have intensified considerably for Aurubis.
Rainer Verhoeven, Chief Financial Officer
The measures will make Aurubis leaner, better interconnected, and more digital. With new, modern structures and processes, duties and jobs at Aurubis will change and in some cases be cut. Apprenticeships won’t be impacted, however, and investments will continue to be made in vocational training. At the same time, Aurubis will cut about 210 jobs in the next two-and-a-half years. “We are aware that the reduction of personnel costs and the job cuts related to this impact people’s lives,” states CEO Roland Harings. “That’s painful. We will try to do this in the most socially responsible manner possible.” Aurubis will avoid redundancies wherever possible, forgo filling jobs that open up, and take advantage of voluntary resignations and job changes. The early retirement program has also been significantly overhauled.