Nyrstar Announces Intention to Restructure its Balen/Overpelt Plant
for a Long-Term Future
Balen, Belgium (15 October 2008) - Nyrstar NV today informed its
Belgian works councils of an intended restructuring of its smelting
activities at the Balen/Overpelt plant. This is part of Nyrstar's
ongoing strategic review of its global operations through which it is
seeking to enhance its operational and financial performance in the
face of difficult economic conditions. The recently announced review
of Nyrstar's Australian assets in Hobart, Tasmania, and Port Pirie in
regional South Australia and the proposed sale of Nyrstar's 60%
interest in Nyrstar Yunnan Zinc Alloys Co Ltd also form an important
part of this strategic review.
The Balen/Overpelt plant is Nyrstar's largest zinc smelter producing
255,000 tonnes of zinc cathode in 2007, together with ancillary zinc
oxide washing, alloying and casting facilities. The restructuring is
aimed at preserving the long-term future of the plant and employment
in response to increasing energy and high labour costs.
The intended changes at Balen/Overpelt will reduce the number of
roles in the plant by 205 over the next 24 months. Nyrstar is
committed to managing the reductions fairly and respectfully, mindful
of its impact on the local community. Nyrstar employs approximately
800 people in Belgium.
As part of the intended changes at Balen/Overpelt, Nyrstar has
committed to invest an additional ¤5 million in skills training for
its employees, together with further investment in plant
modernisation. Implementation of these intended changes at
Balen/Overpelt is expected to generate annual cost savings of ¤14
million through improved production efficiencies and labour savings.
As required by law, the management at the plant will immediately
enter into the first phase of information and consultation with
employee representatives.
Commenting on the plans, Lucien van den Boogaard, general manager of
Balen/Overpelt, said, "The intended restructuring is essential if we
are to have a sustainable future for the plant and employment. We
will deliver a fair outcome for all employees affected."
- end -
About Nyrstar
Nyrstar NV is the world's largest producer of zinc metal and alloys,
and in addition, is one of the world's largest primary lead smelting
and refining companies. The company produces other valuable
by-products including copper, gold and indium, along with significant
quantities of refined silver. In 2007 Nyrstar produced more than one
million tonnes of zinc. Incorporated in Belgium and with its
corporate offices in London (United Kingdom) and Balen (Belgium),
Nyrstar has wholly-owned operations in Australia, Belgium, France,
the Netherlands and the USA and joint ventures in Australia, China
and France. Nyrstar is listed on Euronext Brussels under the symbol
NYR. For further information visit the Nyrstar website,
www.nyrstar.com
Contacts
Investors / Media
Jan Altink
Director IR and
Communications
T: +44 20 7408 8119
M: +44 7912 269 483
jan.altink@nyrstar.com
Craig Chapman
IR Manager
T: +44 20 7408 8195
M: +44 7912 391 370
craig.chapman@nyrstar.com
or
Jan Van Heuverswyn
Interel (Belgium)
T: +32 475 370 338
jan.van-heuverswyn@interel.eu
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
