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Linking up Combining strengths
NEWS
Combining strengths
MTU Aero Engines and Sagem (Safran Group) to form joint venture
MTU Aero Engines and Sagem have signed a Memorandum of Understanding (MoU) to form a joint venture in the development of safety-critical software and hardware for military and civil aviation applications. Located at the MTU campus in Munich, Germany, the new company is set to start its operations in 2012. The 50/50 joint venture will gather some 200 engineers, mainly from the current MTU organisation. Main products will include safety-critical engine controls for programs such as TP400-D6 for the A400M military transport aircraft, as well as further safety-critical hardware and software solutions such as controls for landing gear, braking, monitoring or information systems.
“Our intention is to provide a sustainable perspective for our joint hardware and software skills and activities, while military budgets are decreasing. Together with Sagem, the JV can access a wider range of market segments and additional third party business,” explained MTU CEO Egon Behle.
According to Philippe Petitcolin, CEO of Sagem, “this Franco-German JV will constitute an important step towards European consolidation of the sector and a high-quality vehicle to better answer to our customers in the context of pan-European programs and projects.” Visit: www.mtu.de
Magnitogorsk Iron and Steel Works to acquire Flinders Mines Limited
Magnitogorsk Iron and Steel Works OJSC (MMK) has announced the execution of a Scheme Implementation Agreement to effect the acquisition of Flinders Mines Limited by MMK.
Flinders’ flagship asset, the PIOP (Pilbara Iron Ore Project), is located in the West Pilbara region of Western Australia. The PIOP has a large 917.3Mt JORC-compliant resource of high quality direct shipping and feed ore with average grade Fe 55.2 per cent and significant potential for further resource upgrades.
With this transaction, MMK will gain access to a high-quality iron ore development project with a substantial resource base and robust economics with low operating and capital costs.
MMK board of directors chairman Victor Rashnikov said, “I am delighted to announce our agreement to acquire 100 per cent of Flinders Mines. With the support of MMK and under the continued leadership of their professional management team, I am confident that Flinders will develop into a leading iron ore producer in Australia. This transaction represents another important step forward for MMK to become a highly efficient vertically integrated international metals and mining company.” Visit: www.mmk.ru
Addtech Group acquires Rollco
Addtech Components, a business area in the Addtech Group, has signed an agreement to acquire all outstanding shares in Rollco Holding AB.
Rollco is a leading supplier of components and solutions for linear motion and automation solutions to the manufacturing industry in the Swedish and Danish markets. The Rollco group also has operations in the other Nordic countries and in Taiwan.
Rollco will become a part of the business area Addtech Components where the company’s products will complement the existing sales of mechanical components in the Nordic markets. The Rollco group has 38 employees and a revenue of approximately 100 MSEK.
The closing is estimated to take place in the beginning of January 2012. The acquisition is estimated to have a marginally positive effect on Addtech’s earnings per share during the current financial year. Visit: www.addtech.com
Lödige cooperates with Semco in Brazil
Gebrüder Lödige Maschinenbau GmbH has established a strategic partnership with the Brazilian Semco Equipamentos Industriais Ltd. The Brazilian manufacturer of industrial mixers with a registered office in São Paulo will represent Lödige in South America as a distributor and licence holder.
Semco has long experience in the production of mixers, reactors and dryer as well as the process technology field.
Semco is now responsible for the sales and installation of Lödige machines in Brazil, Paraguay, Uruguay, Argentina and Chile. All standard components for process technology applications will be manufactured under licence directly in Brazil.
All South American countries are expecting a strong and sustained economic growth. The demand for imports is steadily growing.
With the new partner Semco, Lödige will be able to react much better to the specific regional customer requirements. This will strengthen Lödige’s position on the South American market on a long-term basis. Visit: www.loedige.de
LINKINGUP
SCA has delivered a binding offer to acquire Georgia-Pacific’s European tissue operations, with sales in 2010 amounting to €1.25 billion. The offered price is €1.32 billion.
“The deal is a strategic fit and will strengthen our product offering and geographic reach in Europe. It also leads to substantial synergies,” says Jan Johansson, president and CEO of SCA.
Georgia-Pacific has a well-established presence in Europe in both away-from-home and consumer tissue products. Their products in both segments are in particular marketed with the wellknown Lotus brand.
Consumer tissue accounts for some 60 per cent of total sales and away-from-home tissue accounts for approximately 30 per cent of sales. Personal care products such as cotton pads and facial cleansing wipes account for some 5 per cent. In the consumer tissue business, close to 70 per cent of sales are branded products and the remainder are private label products.
Georgia-Pacific’s European tissue operations have approximately 5000 employees and 15 production sites in seven countries. Visit: www.sca.com
Systemair has agreed to acquire the Airwell factory in Milan, Italy which is part of the Airwell Group. Airwell Barlassina manufactures chillers for comfort cooling. The product range includes chillers from 20 to 1200 kW. Airwell has one of the widest product lines in the sector and manufactures chillers with both liquid cooling and air cooling. In recent years, there has been extensive product development and most products are currently Eurovent certified.
The factory has 155 employees and Systemair will also take over parts of the sales department for commercial air conditioning in Italy. The plant has one of the most modern R&D centres in Europe for development and testing of chillers, a showroom and a training centre.
The turnover of the company is estimated at around €24 million for 2011. Closing is expected to take place in January 2012.
“The acquisition will strengthen us considerably in our sales of air handling units where cooling is included to create a good indoor climate. We will become much stronger in the project business and see clear synergies through this acquisition,” says Gerald Engström, CEO of Systemair. Visit: www.systemair.com
Statoil and Centrica sign major gas sales agreement
Statoil and Centrica have entered into a longterm gas sales agreement for the delivery of 5 billion cubic metres (bcm) per year from 2015 to 2025 to the UK market. This new long-term gas sales agreement follows an existing agreement between Statoil and Centrica that expires in 2015.
“The agreement demonstrates that natural gas is set to play an important role in the UK’s long-term energy mix,” says Statoil’s president and CEO Helge Lund, adding that “Natural gas has all the features needed for the UK to reach its long-term energy policy goals of affordability, security of supply and CO2 emissions reduction.”
The gas under the contract is linked to indices at the National Balancing Point (NBP), the virtual price setting point in the UK gas market. The volumes will be delivered through existing pipeline infrastructure from the Norwegian Continental Shelf. Visit: www.statoil.com
Clyde Blowers acquires Moventas
Global industrial engineering group Clyde Blowers has signed an agreement to acquire the wind gear manufacturer Moventas Wind Ltd and the industrial gear manufacturer Moventas Santasalo Ltd. Following the acquisition of the Moventas companies, Clyde Blowers, with its existing David Brown Gear Systems business, will be one of the largest gear manufacturing groups in the world.
“We are very pleased to get an excellent owner for us with an industrial background; Clyde Blowers offers us stability and further development of our business. This also significantly strengthens our position and opportunities on our main markets,” comments president & CEO of Moventas Jukka Jäämaa.
Clyde Blowers is an industrial engineering group headquartered in the UK. Its interests cover a wide range of industrial engineering activities in the power, oil & gas, mining and minerals, rail and other industrial markets.
The business has been acquired for the price of €100 million, and has been solely financed by equity investment. Visit: www.moventas.com
