06/14/2013STEAG adds new member to its Board of Management

Michael Baumgärtner appointed Chief Financial Officer / Restructuring progresses / New subsidiary STS founded

Essen. The Supervisory Board of STEAG GmbH today resolved to add a new member to the Board of Management: Michael Baumgärtner (48) will in future take on responsibility for Finance at the Essen-based energy company.

“I am very much looking forward to my new job,” says Baumgärtner, a business administration graduate who previously worked as Finance Director at EnBW Kraftwerke AG. “With its history, its structure and its strategic orientation, STEAG is a company that offers great scope – also for me as Chief Financial Officer. I am excited about the challenges that face me.”

Michael Baumgärtner, who has over 15 years of experience in the energy industry, will join Dr. Wolfgang Cieslik (Trading), Alfred Geissler (Human Resources) and Dr. Ralf Gilgen (Operations & Technology) as the fifth member of the Board of Management headed by Joachim Rumstadt, Chairman of the Board of Management. “The expertise and experience Mr. Baumgärtner brings with him will be of great use to STEAG,” Joachim Rumstadt says. “Our company will benefit from his know-how and will be even better positioned as an independent player in the market to face the impending challenges.”

Michael Baumgärtner, who emerged the clear favorite for the job in an intensive selection process with several candidates, is intended above all to relieve the burden on the Chairman, who previously bore sole responsibility for the finance function, and assist in creating more strategic freedom for Joachim Rumstadt. “It is our central function as the Supervisory Board to ensure that STEAG can position itself well for the future,” says Guntram Pehlke, Chairman of the Supervisory Board. “With the appointment of Michael Baumgärtner as Chief Financial Officer, we have now created conditions which enable Mr. Rumstadt to concentrate much more on the strategic orientation and future planning of the company.”

The Chairman of the Supervisory Board and Chairman of the Executive Board of STEAG shareholder DSW21 (Dortmund) also attributes a central role to the future Chief Financial Officer of STEAG GmbH in the process of selecting further shareholders for the company. “The selection of potential investors and further shareholders to take over the 49 percent still held by Evonik Industries AG is one of the most important decisions for the future of STEAG,” according to Guntram Pehlke. “And in that respect too we are relying on the knowledge and experience of Mr. Baumgärtner.”

Administrative reorganization

A further focal area in Michael Baumgärtner’s work in future will be to assist in the ongoing restructuring programs within STEAG GmbH. At the end of 2011, a program was launched to reduce material costs at the power plants and other technical facilities, in the wake of which 200 jobs are being trimmed at the company’s locations in the Ruhr and Saarland – in consultation with the Works Councils and including compensation measures. Now, a reorganization of the administrative departments at the German and overseas offices of STEAG is also impending. In the course of that, it is expected that 300 of the present 5800 jobs will be successively phased out.

“The conditions currently prevailing on the energy market in Germany are also causing problems for STEAG,” says Joachim Rumstadt. “As with all energy companies, these developments also entail fundamental changes for us. That is why we have to make the company fit for the future in the operational units, the technical departments and also in its administration. The resulting loss of jobs is painful, but necessary, as any change in the background conditions with an improvement in the difficult market environment for energy companies is not likely soon.”

STEAG Technischer Service GmbH as a highquality service provider

One of the first positive results of this restructuring process is the foundation of the subsidiary STEAG Technischer Service (STS) GmbH. STEAG is now concentrating its expertise accumulated in 75 years with systems in the areas of power generation, networks and industry within STS GmbH.

STS GmbH brings together a team of specialists with years of experience, who can provide their customers with the complete planning and implementation of all technical servicing, inspection and maintenance services required for safe and reliable plant operation, and services for electrical networks ranging from design through construction to maintenance. STS’s workforce will comprise 491 staff members who can be deployed both in Germany and abroad.

“We have already been performing external contract work for several years, and have found in doing so that our know-how, especially in modernization, conversion and maintenance of large-scale plant such as in the power sector, waste to energy facilities or manufacturing industry, is in great demand,” Dr. Ralf Gilgen explains. “Market research shows us that the market for sophisticated maintenance services is developing. We as STEAG want to play a larger role on that market with the new subsidiary.”

The directors of STS GmbH will be Rainer Borgmann and Peter Nützl, both with many years of experience gained at STEAG. “With the foundation of STS GmbH, we are systematically concentrating our unique know-how from the continuous optimization of our own power plants and from our own network operations within a single team,” Peter Nützl explains. “STEAG’s customers will be able to benefit from that know-how in future, so as to achieve safe, reliable and cost-effective operation of their own plants and systems.”

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STEAG Michael Baumgaertner(1.0 M)
PM STEAG CFO 14062013 en(47 K)
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Frauke Riva
Head of Corporate
+49 201 801 4253