RKW Closes Its Unseburg Site

Transfer of Agricultural Film Products to Michelstadt

Frankenthal, Germany, June 08, 2017 - The Executive Board of the RKW Group and the Board of RKW Agri GmbH & Co. KG have decided to close the Site in Unseburg, Saxony-Anhalt. The exact timing of this step is still the subject of negotiations with employee representatives. At present, the Site employs 67 people. These, as well as the Works Council, have already been informed of the plans. The agricultural films currently manufactured in Unseburg will be transferred to the Michelstadt Site.

"In spite of significant investments and numerous modernization measures taken since the plant was taken over in 2014, the necessary progress in terms of capacity utilization and profitability could not be achieved" explains RKW's CEO Harald Biederbick. "In the light of persistently poor results, production in Unseburg was deemed unsustainable and contradicts our strategic alignment of concentrating on our core and profitable niche products. We deeply regret having to make this decision but after having examined all alterative scenarios, the step proved unavoidable. The exact timetable of the closure is currently being negotiated with the Works Council".

The top priority for the Management Board is now providing appropriate assistance to the employees affected. Talks with employee representatives have begun. Biederbick adds, "Currently we are examining if we can offer jobs at other RKW Sites and, together with the Works Council, are negotiating fair assistance to mitigate the financial impact on the affected employees".

RKW took-over the Unseburg plant in May 2014, and since then, produced films for the agricultural and the construction sector there. While the production of agricultural films will be transferred from Unseburg to Michelstadt, RKW will be abandoning its production of construction films, including geomembranes, in Unseburg.

For more information about RKW, please visit: www.rkw-group.com.

The RKW Group

The RKW Group is an independent, family-owned company headquartered in Frankenthal, Germany and one of the world's foremost manufacturers of excellent film solutions. RKW is the market leader in the areas of hygiene and agricultural films, films for the beverage industry and packaging for powdery goods. In addition, the company makes films and nonwovens for medical applications, for the chemical and converting industries as well as for the construction sector. RKW's sustainable films enable its customers to improve the daily life of consumers all over the world.

In the fiscal year 2016, RKW generated total sales of EUR 902 million. About 3,000 employees process 380,000 tonnes of plastic materials at more than 20 locations around the world. True to the corporate slogan "When excellence matters", the company, which was founded in 1957, offers outstanding performance in terms of quality and service. Respect and reliability are the core values of RKW and form the basis of the company's success.

RKW Press Contact

Alexandra Jaranilla
Director Corporate Marketing & Communications
Nachtweideweg 1-7
67227 Frankenthal | Germany
T.: +49 (0)6233 8709-136