Corporate | 3 July 2007 08:42
Muehlhan AG / Miscellaneous/Miscellaneous
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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PRESS RELEASE
Muehlhan realigns organization of activities in the US business:
• Adaptation of US subsidiaries to changed market situation
• New director at steel bridge refurbishment company CCC
• Optimization of internal project and controlling processes
Hamburg, 3 July 2007 – Muehlhan AG (Entry Standard; ISIN DE000A0KD0F7) has
reorganized its US business. This move reflects the company’s reaction to
the prolonged weakness of the American market for Ship Newbuilding and Ship
Repair as well as the difficulties in project controlling.
'We have disbanded the continental management level in the USA,' explains
Muehlhan CEO Dr. Andreas Krüger, 'which is our response to the altered
market situation and the difficulties in project controlling. Through this
action, we will also change the divisional organization with respect to its
legal structure,' Dr. Krüger explains. While each of the three companies
was previously active in several business divisions, the activities are
henceforth consolidated under one to be renamed divisional company in each
case. Industry Services will be bundled under Muehlhan Certified Coatings,
while Ship Repair and Ship Newbuilding will be combined under Muehlhan
Marine and the Oil & Gas Offshore business will become Muehlhan Offshore.
In the future, all three divisional managers will report directly to the
Executive Board of Muehlhan AG. 'This will give us more direct access to
the US business and prevent loss of information due to various management
levels.' The entire commercial division of all US activities will be
consolidated into one service company, which will further strengthen the
independence and objectivity of reporting activities. Krüger goes on to
explain that 'we have been operating very successfully with a similar
organization in large parts of Europe for a number of years now.'
The company management of the subsidiary CCC (in future: Muehlhan Certified
Coatings), which was just acquired in October of last year and has
meanwhile almost completed the difficult project on the Golden Gate Bridge,
will be reassigned. 'As we know by now, the problems during the completion
process already existed before the acquisition of the company by Muehlhan.
We responded to the inadequate information policy of CCC accordingly and
dismissed the previous director and former shareholder with immediate
effect.' The business is already run by the previous operating director of
the continental management. The final financial impact of the Golden Gate
Bridge project now depends largely on the outcome of the subsequent
negotiations with the client. As a forehanded measure, Muehlhan initiated
legal measures which are expected to additionally enforce claims against
the previous shareholder and director. Muehlhan set aside EUR 1.2 million
during the first quarter of 2007 as a precaution against losses related to
this project.
The changes in the USA also have an indirect impact on the organization in
Europe. Due to the increased demands on the Hamburg management, the
previous European continental management will be dissolved. The previous
management personnel will report directly to Executive Board in new roles.
'This will further increase the efficiency of the Group and guide the US
activities back into the black,' states Krüger.
About Muehlhan:
The Muehlhan Group is a leading world provider of marine surface
protection. Its core business consists of applying and renewing corrosion
protection coatings to steel structures. They include steel surfaces of
ships and of oil and gas rigs and platforms. The Muehlhan Group is also
active in the Industry Services segment, which includes surface protection
for wind turbines, chemical production plants and fuel storage depots,
steel bridges, cranes and machinery. The company’s patented technology
brand-named μ-jet guarantees especially high quality and efficiency in
the removal of old coatings and rust, particularly in the open sea.
Muehlhan was established in Hamburg in 1881 and today employs some 2,300
people in 31 subsidiaries around the world. In 2006 the company generated
revenues of EUR 184 million (IFRS). For further information, please visit
www.muehlhan.com.
Public Relations Contact:
Ties Kaiser
Muehlhan AG
Tel.: +49-40-7527-1156
E-mail: kaiser@muehlhan.com
DGAP 03.07.2007
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Language: English
Issuer: Muehlhan AG
Schlinckstrasse 3
21107 Hamburg Deutschland
Phone: +49 40 75271 0
Fax: +49 40 75271 130
E-mail: investorrelations@muehlhan.com
Internet: www.muehlhan.com
ISIN: DE000A0KD0F7
WKN: A0KD0F
Indices:
Listed: Freiverkehr in Berlin-Bremen, Hamburg, München, Stuttgart;
Entry Standard in Frankfurt
End of News DGAP News-Service
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