Exhibit 99.1
[GRAPHIC OMITTED]
BRANDYWINE WEST, 1521 CONCORD PIKE, SUITE 301
WILMINGTON, DE 19803
N E W S R E L E A S E
NYSE: GTI CONTACT: Elise A. Garofalo
Director of Investor Relations
302-778-8227
GTI ANNOUNCES ORGANIZATIONAL CHANGES AND WORKFORCE REDUCTIONS AND
RESTRUCTURING CHARGE AS PART OF COST SAVINGS INITIATIVES
Wilmington, DE- January 9, 2003- GrafTech International Ltd.
(GTI) today announced organizational changes and workforce reductions
and a restructuring charge as part of its cost savings programs.
Craig Shular, Chief Executive Officer of GTI, stated, "The
business realignment and related management appointments we are
announcing today will strengthen our efforts to aggressively build upon
our advantaged production platform and accelerate commercialization
opportunities of our proprietary graphite technologies. We have further
refined the organization of our businesses, into three distinct lines
of business (LOB), to better align GTI's production platform and
resources with market opportunities, to increase productivity and to
streamline our organizational structure."
MANAGEMENT APPOINTMENTS AND ORGANIZATIONAL CHANGES
Scott C. Mason was named President, Graphite Power Systems,
which now contains all of GTI's synthetic graphite businesses and
primarily serves the steel and aluminum industries. The synthetic
graphite LOB includes graphite electrodes, cathodes and all other
advanced (synthetic) graphite products and services. Scott joined GTI
in April 2000, and has held various senior management positions over
the last three years. Before joining GTI, Scott served as Vice
President - Supply Chain of Union Carbide Corporation.
"Scott's extensive supply chain experience and leadership in
running our global businesses has positioned him extremely well for
this opportunity," stated Shular.
John J. Wetula was named President, Advanced Energy Technology
(AET), which contains GTI's natural graphite businesses and primarily
serves the transportation, power generation, electronics and chemical
industries. The natural graphite LOB includes fuel cell, electronic
thermal management, industrial heat management and sealant products and
services. John began his career with GTI in 1982 and has held various
senior management positions in GTI's natural graphite businesses
throughout his
career. Graftech Inc., GTI's natural graphite subsidiary, has been
renamed Advanced Energy Technology Inc.
"John was instrumental in developing our strategic, long-term
relationship with Ballard Power Systems and has played a central role
in our other emerging natural graphite businesses. We have a high level
of confidence in the commercialization of GTI's proprietary
technologies and are committed to capitalizing on these growth
opportunities," stated Shular.
Pieter J. Barnard was named President, Advanced Carbon
Materials, which contains carbon-based products serving primarily the
silicon metal and ferro-alloy industries. The advanced carbon materials
LOB includes carbon refractories and carbon electrodes. Pieter joined
our South African subsidiary in 1972 and was most recently Vice
President, Graphite Power Systems.
"Pieter brings extensive manufacturing and business experience
to this position," stated Shular.
The realignment of GTI's businesses and the management
appointments, reporting directly to the Chief Executive Officer, are
effective immediately.
COST SAVINGS AND RESTRUCTURING CHARGE
In conjunction with this realignment and as part of GTI's
previously announced $80 million major cost savings plan, GTI has
announced voluntary and selective severance programs. These programs
are designed to compliment GTI's global work process and organizational
redesign. Since 1998, GTI has reduced its global workforce by
approximately 1,600 employees or 30 percent. The voluntary and
selective severance programs are expected to result in the reduction of
up to an additional 200 employees, representing 5 percent of the global
workforce. The voluntary severance program requires election by
eligible participants by March 31, 2003. These programs may require up
to $14 million of restructuring charges throughout 2003, approximately
$7 million of which is expected to be cash. The estimated benefits from
these programs are $6 million in 2003 and $12 million in each of 2004
and 2005 and are part of GTI's previously announced $30 million, $60
million and $80 million recurring cost saving targets in 2003, 2004 and
2005, respectively.
OTHER ITEMS
The expected early retirement of several senior managers in
2003 may require additional charges and pension funding over the next
twelve months. If lump-sum payouts are elected by these senior
managers, under GTI's non-qualified defined benefit plan, it would
result in an additional charge of approximately $6 million. The Company
would also be required to increase the funding of these previously
earned benefits. The Company intends to contribute approximately $8
million of GTI common stock to the non-qualified defined benefit plan
over the next twelve months.
GrafTech International Ltd. is one of the world's largest
manufacturers and providers of high quality natural and synthetic
graphite and carbon based products and services, offering energy
solutions to industry-leading customers worldwide engaged in the
manufacture of steel, aluminum, silicon metal, automotive products and
electronics. We have 13 manufacturing facilities in 7 countries and are
the leading manufacturer in all of our major product lines. We produce
graphite electrodes that are consumed primarily in the production of
steel in electric arc furnaces, the steel making technology used by all
"mini-mills," and for refining steel in ladle furnaces. We also produce
carbon electrodes that are consumed in the manufacture of silicon metal
and cathodes that are used in the production of aluminum. In addition,
we develop and manufacture natural graphite for use in materials and
components for proton exchange membrane fuel cells and fuel cell
systems, thermal interface products for computer, communications and
other applications, fire retardant products for transportation
applications and building and construction materials applications,
industrial thermal management products for high temperature process
applications, and conductive products for batteries and supercapacitor
power storage applications. GRAFCELL(TM), GRAFGuard ., GRAFOIL(R),
GRAFSHIELD . and eGraf(TM) are our trademarks. For additional
information on GrafTech International, call 302-778-8227 or visit our
website at www.graftechinternational.com. For additional information on
our subsidiary, Advanced Energy Technology Inc., call 216-529-3777 or
visit its website at www.graftech.com. For additional information on
our High Tech High Temp business unit, call 216-676-2100 or visit its
website at www.HT2.com.
NOTE: This news release contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995. These
include statements about such matters as growth opportunities, product
and technology development and commercialization, implementation of
benefit plan closures, organizational changes, management appointments
and workforce reductions as well as benefits therefrom. We have no duty
to update such statements. Actual future events and circumstances
(including future performance, results and trends) could differ
materially from those set forth in these statements due to various
factors. These factors include risks generally encountered in
connection with workforce reductions, changes in business organizations
and commercial launch and acceptance of new products, as well as risks
associated with changes in governmental policies and decisions, the
occurrence of unanticipated events or circumstances relating to
research, development and collaboration activities, changes in interest
rates, changes in strategic plans or programs, decisions by retirees,
changes in global or regional economic and competitive conditions,
technological developments, and other risks and uncertainties,
including those detailed in our filings with the SEC as well as future
decisions by us.