SCHOPFLOCH, GERMANY - Homag Group reached agreements with the works councils of its subsidiary companies Buetfering Schleiftechnik GmbH, Beckum, and Torwegge Holzbearbeitungsmaschinen GmbH, Löhne, as well as with the its own works council on the terms for a planned restructuring.

Homag's restructuring plan includes closing three of the group's 11 production facilities in Germany  and reducing its overall workforce by 180 positions. Once these cost-cutting measures are fully implemented the company said it would realize an annual savings of 6 million to 8 million Euros ($8 million to $10.7 million).

Buetfering, a manufacturer wood sanding equipment, will be consolidated into Weeke Bohrsysteme GmbH, Herzebrock-Clarholz, another subsidiary of the HOMAG Group, as planned. Buetfering will retain brand identity and 62 Buetfering employees will take relocate to the Weeke facility. In addition, Buetfering's metal grinding business will be sold.

Homag previously announced plans to close the Torwegge and Friz manufacturing plants and consolidate their operations in other Homag Group facilities. The latest restructuring measures at Torwegge, which are expected to be concluded by year's end, impact 73 employees who are being offered the opportunity to join a transfer company.

Homag Group AG’s CEO Dr. Markus Flik said, “The agreements that have now been reached are a further important step in our restructuring effort, which so far is proceeding as planned. Together with the works councils, we were able to find a viable solution for all participants. With this move, we are making the Homag Group fit for the future, improving our competitiveness and strengthening our profitability.” T

Hannelore Knowles, chairwoman of Homag Group's works council, is also satisfied with the achieved result: “Under the given circumstances, our top priority was to ensure that as many employees as possible keep their jobs. For the remaining employees, we wanted to achieve the most socially acceptable transition. We succeeded in doing this with the agreements that have been reached.”