As part of last year's strategy formulation process, the Swissmetal Board of Directors came to the conclusion that the loss of the Lüdenscheid plant, which had previously been classified as uncompetitive, had created a player that now needed to be taken seriously – one with highly modern new facilities, financed by investments on the part of Swissmetal, such as the new extrusion press bought in 1997. With the acquisition of the current Busch-Jaeger Metallwerk GmbH, the former loss of a valuable site is now being rectified. Under its new management, Busch-Jaeger has turned itself into an efficient producer and supplier of copper and copper alloys in specialized fields, including products for the electronics, writing implements and precision turned parts sectors which are of relevance to Swissmetal. Together with the general management of Busch-Jaeger, the Swissmetal management has agreed a common approach to the future integration of the company. Substantial industrial synergies can be achieved, especially in the area of production and sales, but also with regard to the investment plans of either company. The two companies' product ranges can be sold through the same sales channels without restriction. Swissmetal intends to fully integrate Busch-Jaeger, making it a fixed component in its Group strategy and in the industrial concept for the period 2006-2010.

The first collaboration with Busch-Jaeger, which lasted from 1990 to 2002, ultimately failed owing to an unsuccessful integration policy. Since making a new start in 2003, the site has enjoyed significantly increasing gains in market share in attractive specialized fields.

Due to the illegal strike and the unlawful occupation of the production site at Reconvilier, the scheduled talks with Busch-Jaeger were stepped up over the last few days. Actual acquisition negotiations were only entered into once the strike had broken out.

In relation to today's acquisition, Swissmetal expressly reiterates that the company still firmly intends to develop Reconvilier as a production site, creating a competence centre for wire and rod finishing and a distribution centre for products for the precision turned parts industry. Swissmetal calls upon the strikers at Reconvilier to immediately end both the illegal strike and the unlawful occupation of the production site, and to enter into an open dialogue – with a still to be defined group of participants – regarding the fundamental question of how the Reconvilier plant can find its position within the Swissmetal Group.

Busch-Jaeger GmbH employs 170 workers at its Lüdenscheid plant, producing around 20,000 tonnes of copper-based alloys per year and generating sales of EUR 60 million. Exports account for around 40% of production.