Released on May 28, 2009

Georg Fischer (GF), Schaffhausen, Switzerland, announced that its GF Automotive division will sell its light metals casting facility in Gleisdorf, Austria, to industrial holding company Bavaria Industriekapital, Munich, Germany, for an undisclosed amount.

According to a press release issued by GF, the divesture is part of a broad-based restructuring in which the company will attempt to cut its total costs by more than $3.25 million.

“We have reacted swiftly and purposefully to the economic crisis and have already reduced costs substantially,” said Yves Serra, GF chief executive officer. “Our task in these difficult times is to take far-reaching measures. These decisions were certainly not easy to take. The [restructuring] creates the conditions for GF to emerge strengthened from this crisis and to benefit from its good market position.”

According to the release, GF has been reviewing its locations since last year and now is focusing more closely on its core business. The metalcasting facility in Gleisdorf, with about 200 employees, manufactures mostly small components. The company’s light metal activities now will be concentrated at its Altenmarkt and Herzogenburg, Austria, Werdohl and Friedrichshafen, Germany, and Suzhou, China, locations. GF expects Bavaria Industriekapital AG to carry on the light metals casting business and continue to supply the plant’s customers.

GF expects to make similar changes in its two other divisions, together resulting in the company’s staff being reduced by approximately 2,300 positions or 16% by mid-2010. The company indicated it believes the current economic crisis has bottomed out, but that no sustainable recovery is likely before 2011. The company forecasts a drop in 2009 sales of about one third.