NEWS
Combining strengths
Outokumpu establishes joint venture to launch a turnaround for its tubular unit
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utokumpu and Andrea Gatti have signed a letter of intent on a joint venture arrangement for Outokumpu’s tubular unit (OSTP). Subject to the signing of the final agreement a company controlled by Mr Gatti will become a minority owner in OSTP and will have an option to become a majority owner of the business in the coming years. CEO Mika Seitovirta says: “We welcome Andrea Gatti as our partner in OSTP’s turnaround. I am convinced that jointly we can reform OSTP to a profitable entity. Staying as an owner in the business enables Outokumpu to maintain the relationship as a supplier to the OSTP units and retain a big part of the value increase that we expect the turnaround plan to deliver.” OSTP will be separated from Outokumpu and it will be managed through the OSTP Board, with a chairman appointed by Outokumpu. The turnaround plan for OSTP will be further detailed by the partners in the joint venture and it will include significant streamlining of the production structure, optimisation of the product portfolio and general cost reduction. Visit: www.outokumpu.com
Brenntag achieves strategic market entry in China
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renntag, the global market leader in chemical distribution, has signed a purchase agreement to acquire 100% of Zhong Yung (International) Chemical Ltd. Brenntag will hold a majority stake of 51% and will acquire the remaining stake in 2016. Entering into a joint venture for five years gives Brenntag the opportunity to use the experience and know-how of Zhong Yung and its management team to establish a solid business platform for Brenntag in China. “This acquisition is a strategic investment for Brenntag in China and also a first step through which Brenntag demonstrates full commitment
to build a solid distribution network in China. We are continuing to look for further opportunities to support our growth in Asia Pacific.” says Brenntag’s COO and designated CEO Steve Holland. Henri Néjade, President of Brenntag Asia Pacific, highlights: “We are delighted to team up with Zhong Yung because it opens the opportunity for further growth in China. Zhong Yung is a major chemical distributor with about 2000 customers, more than 100 suppliers and has an excellent infrastructure including laboratories, blending and storage capabilities.” Visit: www.brenntag.com
ABB acquires the Trasfor Group and expands its transformer business
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BB, the leading power and automation technology group, has agreed to acquire the Trasfor Group to expand its offering of speciality transformers and address fast growing markets and applications. Trasfor is a leading manufacturer of dry-type transformers and inductors for low-voltage and mediumvoltage applications. It provides speciality products for drives, railway rolling stock, offshore wind power and other types of power generation based on renewable energy, and in addition supplies a range of industries such as marine, oil and gas. “This bolt-on acquisition is in line with ABB’s strategy. It will strengthen our transformers business, broaden our customer offering and extend our market presence,” said Bernhard Jucker, head of ABB’s Power Products division. “Trasfor’s energy-efficient product range complements our transformer portfolio and offers scope for synergies and growth.” The transaction is subject to customary regulatory approvals. ABB expects the closing to be completed during the second half of this year. Visit: www.abb.com
Sika acquires contract manufacturer in Switzerland
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ika AG, headquartered in Baar, is acquiring Romanshorn-based plastic products manufacturer Biro Edwin Bischof AG. Biro produces injection-moulded parts for the European automotive industry on behalf of customers including Sika. The company generated sales of CHF 35 million in 2010 and
18 Industry Europe
employs approximately 150 people. Biro Edwin Bischof AG was founded by Edwin Bischof in 1962. Today 55% of the company’s output is destined for the automotive industry. The vast majority of these parts are produced for Sika. Biro Edwin Bischof AG has come under increasing pressure in recent years as a result of the financial and business crisis. The acquisition will put it on a new
financial footing and avoid a situation that would threaten its continued existence. Biro Edwin Bischof AG has been producing parts for the automotive industry on Sika’s behalf for over ten years. By acquiring the company, Sika is therefore ensuring that production will continue and its various supply commitments to its partners will be upheld. Visit: www.sika.com
