Company News, 2006-02-03, 11:01 AM
ThyssenKrupp Services forging ahead in its internationalization efforts
Düsseldorf-based ThyssenKrupp Services AG, the services arm of the ThyssenKrupp Group, has with immediate effect expanded its international production materials and industrial services operations by acquiring two companies, one in Canada and the other in Britain-representing around 340 added employees and EUR110 million in sales revenues. It has been agreed not to disclose the purchase prices.
In Canada, ThyssenKrupp Services through its materials services company ThyssenKrupp Materials NA Inc., Detroit, acquired a 100-percent stake in VPK Metals Inc., Toronto, Canada's foremost ex-warehouse trader of copper and brass. VPK Metals has a workforce of 260 and generated sales of around EUR90 million in fiscal 2004/05.
Previously privately owned, this company operates seven branches, of which three in Canada (Toronto, Montreal, and Calgary) and four in the USA ((South Carolina, Michigan, Wisconsin, Oklahoma). It's especially in the processing of materials for the electronics industry that VPK Metals commands vast expertise.
Joachim Limberg, Executive Board member of ThyssenKrupp Services, commenting on the commitment: "Our pronounced goal is to consolidate our top position for certain nonferrous products in the NAFTA region-through improved market penetration, geographic expansion, and added services. We intend to grow VPK Metals in the long term."
It was not long ago in December 2005 that ThyssenKrupp Materials NA had acquired the industrial services, warehousing, and logistics business of the Canadian Hearn Group, Windsor, a company specialized in preassembly, warehousing logistics, quality control/assurance, as well as finishing. "This acquisition supplements our successful operations in procurement and logistics with closer-to-production-related services, and is another step in our efforts to expand our US industrial services business," comments Limberg on the direction being taken.
With now some 2,500 employees, 90 locations and sales totaling EUR1.9 billion, ThyssenKrupp Materials NA is a leading materials management and services company in the NAFTA region, with a product range chiefly comprising nonferrous metals, as well as steel, specialty steel, and plastics. The services provided extend from conventional warehousing via value-adding processing and logistics through to complete supply chain management.
British aluminum specialist acquired
Alongside its Canadian commitments, ThyssenKrupp Services has also amplified its presence in the U.K. by acquiring through its materials trading company ThyssenKrupp Materials (UK) Ltd., Cox's Lane/Birmingham, all of the shares in Metalfast Ltd., Highworth near Swindon.
Metalfast offers innovative services, especially in aluminum, and has warehouses and size-cutting facilities in Highworth, Tividale, in the West Midlands, Huntingdon in East Anglia and Bredbury near Manchester. The seller, Malcolm Spencer, is continuing in his position of General Manager.
Founded in 1984 and with a workforce nowadays of around 80, Metalfast generates sales of about EUR18 million. "The acquisition allows us to notably expand our aluminum-related products and services and considerably broaden the customer base," states ThyssenKrupp Services Executive Board member Joachim Limberg when commenting on the move. Metalfast's British customers include the high-tech industry.
ThyssenKrupp Materials UK's sales in fiscal 2004/2005 totaled EUR164 million. The company presently has a workforce of around 250. It stocks, in particular, nonferrous metals-especially aluminum-and stainless semis (flat, long, tubular products). The company has a tube processing center and a service center for stainless flats, aluminum bars and extrusions.