Oct 07, 2011. /Lesprom Network/. The supervisory board of Homag Group AG approved the management board’s proposal to expand the restructuring measures already planned without prejudice to the rights of the co-determination bodies. As a consequence of this decision, the production and administration activities of the subsidiary FRIZ Kaschiertechnik GmbH, Weinsberg, are to be discontinued, as the company said in a press release received by Lesprom Network. A development and service unit of FRIZ specialized in surfacing technology, which employs 15 workers, is to be kept. The Löhne site is to be closed down completely with operations at the subsidiary TORWEGGE Holzbearbeitungsmaschinen GmbH and the service branch of WEEKE Bohrsysteme GmbH located there. The restructuring of BÜTFERING Schleiftechnik GmbH, Beckum, which is to be linked to WEEKE Bohrsysteme GmbH, is progressing as planned. About 180 jobs are expected to be lost as a result of all these measures. Homag Group AG’s CEO, Dr. Markus Flik, regrets the measures, but believes they are necessary: “The companies FRIZ and TORWEGGE have been making losses for several years now. We have intensively examined other avenues, but have been unable to find a feasible alternative. In collaboration with the works’ councils, we are looking to find the best possible solutions for the employees concerned. With this logical step, we are maneuvering the Homag Group into a sustainable position, improving our competitiveness and strengthening our earning power.” Once the full restructuring program is completed, the management board expects to generate a sustained improvement in operative EBITDA (before expenses from employee participation and before extraordinary expenses) ranging between Euro 6 million and Euro 8 million each year from 2013 onwards. Owing to the expansion of restructuring measures, the Homag Group’s extraordinary expenses are now expected to total about Euro 20 million in 2011. Of these, about Euro 16 million will affect liquidity. The largest part of this amount shall be effective 2012. In light of this and the anticipated very high effective tax rate, the Homag Group expects to incur a small loss after taxes for 2011. By contrast, the forecast operative EBITDA remains unchanged, and is still expected to match the prior-year level in 2011 (Euro 65.1 million).