manroland and Works Council Agree on Plan to Streamline Operations

OFFENBACH, GERMANY—Dec. 15, 2010—Management and the works council of manroland AG have agreed on a “reconciliation of interests” and a plan to cut around 500 jobs at its Germany facilities in Augsburg, Offenbach and Plauen by the end of 2012 and to transfer a further 300 employees to the new manroland Industrial Services business unit, which will be founded on Jan. 1, 2011. The portfolio of this new business unit includes industrial consultancy and the placement of technical specialists as temporary staff.

With the reconciliation of interests, the world’s second largest manufacturer of printing systems takes the next major step in its strategic reorientation. The measures are part of a comprehensive restructuring package to secure the company’s long-term independence.

Implementation of the strategic reorientation is making progress not only on the cost side but also on the growth side. manroland recently agreed on a cooperation with Océ Printing Systems GmbH for digital printing, started cooperating with the Tensor Group in the area of newspaper printing for growth regions, and expanded its services offering worldwide.

The reconciliation of interests regulates the job cuts announced in September, as well as redeployment of personnel between company locations. Among other aspects, the package covers offers for voluntary termination, reassignments to other company locations, and extensive measures for further qualification. Also, a transfer company will be formed for affected employees.

The planned job cuts of around 500 will affect indirect functions in administration, as well as the production areas. As a result, the number of manroland’s worldwide employees will drop to about 6,000 by the end of 2012. Furthermore, a framework paper for concluding a supplementary wage agreement has been negotiated with the IG Metall union.

Source: Company press release.