DGAP-News: SKW Stahl-Metallurgie Holding AG

DGAP-News: SKW Stahl-Metallurgie Holding AG: Restructuring Program ReMaKe 2.0 in Operative Implementation - SKW Metallurgie and Banks Striving for Early Agreement on Loan Contract

DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Financing/Restructure of Company SKW Stahl-Metallurgie Holding AG: Restructuring Program ReMaKe 2.0 in Operative Implementation - SKW Metallurgie and Banks Striving for Early Agreement on Loan Contract

18.02.2016 / 10:15 The issuer is solely responsible for the content of this announcement.

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Restructuring Program ReMaKe 2.0 in Operative Implementation - SKW Metallurgie and Banks Striving for Early Agreement on Loan Contract

Unterneukirchen (Germany), February 18, 2016. Global specialty chemicals group SKW Metallurgie and its financing banks intend to conclude successfully the discussions on adjusting the current syndicated loan contract by the end of May 2016. This will make it possible to take into account comprehensively and adequately all ReMaKe 2.0 measures and their expected effects. The Company continues to be optimistic to reach a mutually beneficial solution in the context of said talks. SKW Metallurgie had announced in November 2015 to accelerate the strategic repositioning and had presented the extended restructuring program "ReMaKe 2.0" at the end of January 2016. The operative implementation of first elements of ReMaKe 2.0 has already commenced and targets in particular cost optimization. Over the next three years an additional earnings contribution of almost EUR 20 million should be generated with which to tackle the increasing margin pressure by the client industries. The massive slump of the steel markets in the second half of the preceding year led to a technical violation of financial covenants of the syndicated loan agreement, which is valid until 2018; this is the cause for the current negotiations re an adjustment of the syndicated loan contract. In spite of this, the Group is generating a positive operative cash flow in this challenging environment, and the current loan frame is entirely sufficient for the continuance of SKW Stahl-Metallurgie Holding AG and the SKW Metallurgie Group.

ReMaKe 2.0 is a key element in the current discussions with the lending banks, in which decisions will be taken re amended conditions for the syndicated loan and thus also re a potential restructuring of corporate financing. The Company is optimistic to reach a solution that is satisfactory for all involved. In addition to the discussions with the lenders, the Executive Board and the Supervisory Board are examining how the capital endowment of the SKW Metallurgie Group as well as the corporate parent SKW Stahl-Metallurgie Holding AG can be strengthened further.



Contact SKW Stahl-Metallurgie Holding AG Christian Schunck Head of IR and Corporate Communications Rathausplatz 11 84579 Unterneukirchen Germany

Phone IR/Press: +49 8634 62720-15 Fax: +49 8634 62720-16 E-Mail: schunck@skw-steel.com Internet: www.skw-steel.com

About SKW Stahl-Metallurgie Holding AG and the SKW Metallurgie Group The SKW Metallurgie Group is a global market leader for chemical additives for hot metal desulphurization and for cored wire and other products for secondary metallurgy. The Group's products enable steel-makers to efficiently manufacture high-quality steel products. Clients include the world's leading companies in the steel industry. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and currently operates in more than 40 countries. What is more, the Group is a leading supplier of Quab specialty chemicals, which are mainly used in the global production of industrial starch for the paper industry. The company's operating business is broken down into the two core segments "Cored Wire" and "Powder and Granules", and the "Other" segment. The SKW Metallurgie Group is headquartered in Germany with production facilities in France, the US, Canada, Mexico, Brazil, South Korea, Russia, the Peoples' Republic of China and India (joint venture). The Group reached total revenues of EUR 316 million in 2014 and employs around 900 staff members (as of Dec. 31, 2014). Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange's Prime Standard since December 1, 2006; since 2011 (conversion to name shares) with ISIN DE000SKWM021.

Disclaimer This press release may include certain forward-looking statements which are based on currently available assumptions and predictions of the SKW Metallurgie Group's management as well as on other currently available information. Various identified as well as unidentified risks and uncertainties as well as other factors may result in a deviation of actual results, financial situation, development or achievement of the company compared to the assessments made herein. SKW Stahl-Metallurgie Holding AG does not intend and assumes no liability to update such forward-looking statements and to adjust them to future events and developments.

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18.02.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English Company: SKW Stahl-Metallurgie Holding AG Rathausplatz 11 84579 Unterneukirchen Germany Phone: +49 (0)8634 62720-15 Fax: +49 (0)8634 62720-16 E-mail: info@skw-steel.com Internet: www.skw-steel.com ISIN: DE000SKWM021 WKN: SKWM02 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News Service ---------------------------------------------------------------------------

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