INCAP AND FINN-POWER SIGN A PRELIMINARY AGREEMENT TO OUTSOURCE SHEET METAL OPERATIONS TO INCAP


 Incap Corporation and FINN-POWER Oy have today signed a preliminary agreement concerning the outsourcing of FINN-POWER Oy's sheet metal production and electrical assembly business to Incap. The agreement covers FINN-POWER Oy's production of sheet metal components and subassemblies at Alahärmä and electrical assemblies at Kauhava, and these will together bring Incap an annual net turnover of about EUR 10 million. The purchasing price of the business operations amounts to about EUR 3.1 million, including the stocks and machinery to be transferred to Incap. The final purchasing price will be determined within a year after the transaction. The personnel in the respective operations will move to Incap as old employees. According to the preliminary agreement the business operations will be handed over on 1 May 2003.
 
This transaction is in line with Incap's strategy and will consolidate the company's position as a producer of electromechanical assemblies. Sheet metal mechanics is a central element in electronic and electrical products, and customers in Incap's all business sectors are willing to acquire from a single supplier maximally large and comprehensive product concepts. FINN-POWER's electrical assembly operation will enhance, among others, Incap's expertise in the manufacturing of cabinets and wiring systems for electrical industry and thus improve the company's competitiveness and provide an opportunity to expand its clientele. The agreement will also make it possible to actively develop the design services for sheet metal products. The modern machine stock to be handed over to Incap upon this transaction will enhance the company's status as a leading expert in sheet metal manufacturing.
 
FINN-POWER Oy introduced the first machine tool for sheet metal working into the market in 1983. By investing aggressively in product development and international marketing, the company has become one of the global leaders as a manufacturer of sheet machine tools and flexible manufacturing systems. Apart from its Finnish units, the company also has a manufacturing unit in Italy, a number of international sales companies and a global network of importers.
 
 
INCAP CORPORATION
Board of directors
 
 
Seppo Ropponen
President and CEO