After widening its shareholding in former rival Steag Hamatech (Sternenfels / Germany; www.steag-hamatech.com) to 78.7%, optical digital media replication specialist Singulus Technologies (Kahl / Germany; www.singulus.com) has begun a radical restructuring programme for the new player that will arise from the merger of the two companies – see Plasteurope.com Web of 01.12.2005. The planned moves, which will involve the elimination of some 200 jobs at the merged group up to the end of 2006 including 80 at Kahl, reflect the ongoing downslide in demand for pre-recorded and recordable CDs and DVDs.

In future, the Singulus main site at Kahl will focus on pre-recordables, while output of recordable storage media will be concentrated at Steag´s Sternenfels site. Some non-core activities will be divested. Steag will cease production of pre-recorded media altogether, as the company "does not expect to be in a position to defend" its current 15% market share in this segment and thus stem losses. Service and spare part supply will be maintained for existing customers.

The job cuts and reductions in other fixed costs are expected to save around EUR 20m, including EUR 5m at Steag. Most prominent victim of the layoffs will be Steag CEO Stefan Reineck, who has resigned by mutual agreement with effect from 31 March. Preliminary annual results published by Singulus for 2005 – final figures are to be reported at the end of the first quarter – reflect the market slump. Sales declined by 44% to EUR 244.2m and order intake by 40.5% to EUR 248.5m. In December, Steag said it was not likely to reach its 2005 sales target of EUR 115m (EUR 148m in 2004).