MAAG Gear acquires manufacturing plant in Poland

MAAG Gear AG, a member of the FLS Industries-owned F.L.Smidth-Fuller Engineering Group, has acquired the activities of ABB Zamech Sp.z.o.o., a Polish gear manufacturing facility. Subject to a satisfactory due diligence report, the acquisition will take effect as from 1 March 2000 and is seen as part of the FFE Group's strategy to strengthen the competitiveness of its international gear business in terms of quality, price and reliability of delivery. The seller is the German industrial undertaking ABB Beteiligungen Mannheim GmbH. MAAG Gear will acquire the rights to all ABB Zamech's products and will take over machinery, equipment and a 160 strong workforce. The parties have agreed not to disclose the sales price. For this financial year the acquisition is estimated to break even, and the following years are expected to see a positive return on the investment. In 1999, MAAG had a turnover of 55.8m euro and employed 300 people. The Zamech plant, which in 1999 had a turnover of 8.1m euro, is situated in the Baltic port of Elblag, some 40 km east of Gdansk, and has been a producer of gears and gear components, mainly for the Polish market, during the past 40 years. During the past 10 years, ABB Zamech has supplied components to MAAG Gear A/S in Valby-Copenhagen whose workshops complete, assemble and test the SYMETRO and ATOX gears before being delivered mainly to cement plants worldwide. According to Hans Knudsen, Chief Executive Officer of MAAG Gear, the purchase of Zamech's activities will enable MAAG Gear to concentrate production of critical components at one site, viz. Zamech's. ''We consider this a great advantage and the fully up-to-date production facility and expertise acquired combined with the cost structure in the region in which it is situated will enhance MAAG Gear's global competitive strength.'' FLS Industries A/S Corporate Public Relations