SMS / BATTENFELD
With Cincinnati to leadership in extrusion / “Special role” for injection moulding
Following its takeover of Cincinnati Extrusion GmbH (CET, A-1239 Vienna) the Battenfeld group (D-58540 Meinerzhagen) has advanced to world market leader in extrusion machinery for pipes and profiles, said Wolfgang Studener, general manager of the newly formed holding for the group´s extrusion business, SMS Kunststofftechnik, at a press conference on 14 January.
According to SMS managing board member Dr. Helmut Eschwey, Battenfeld/SMS, with EUR 180m in annual sales, can now claim 30% of this market segment. But he remarked that the Cincinnati deal is just one step on the way to making the German machinery manufacturer an “extrusion powerhouse”, that is world market leader in the entire extrusion machinery sector. Within “a short time,” he projected, sales will increase from currently EUR 330m to EUR 500m, around a sixth of the overall market.
Eschwey hinted at impending acquisitions, in compounding as well as in fibre and cable technology, to complement the group´s strength in pipes and profiles and in films. SMS already has acquired a “substantial stake” in troubled Nextrom Holding SA (CH-1024 Ecublens Lausanne) and there are signs that it also may be interested in Werner & Pfleiderer GmbH (D-70466 Stuttgart), for which Thyssen Krupp sees “better possibilities for development” outside its corporate empire (see Plasteurope.com 22, 1999). Eschwey described the Stuttgart machinery manufacturer not only as “interesting,” but also “very well managed.”
Battenfeld/SMS also could be interested in taking over parts of its competitors´ portfolios, Eschwey suggested. However, he stressed that the group´s policy is always to preserve the acquired companies´ trademarks. He said businesses offering synergies in technology, R&D as well as procurement will be looked at.
After the breakdown of plans to sell the injection moulding subsidiary Battenfeld Spritzgießtechnik to Chicago-based Madison Capital Partners (see Plasteurope.com 01, 2000), Battenfeld apparently has found a “special role” for the firm within the group. While the business will not be expanded, separate performance targets will be defined for it. At the press meeting, Eschwey sought to cool down the heated exchange between SMS/Battenfeld and Madison about why the deal failed. Modifying comments emanating from Meinerzhagen earlier this month, he said the US partner had demanded too many changes in the weeks following the contract signing. After Madison reneged on some terms of the agreement, the German side declared it null and void, he added.
In what is described as an “exception” to the usual structure, management of the injection moulding subsidiary will take an unspecified stake in a newly created holding, to be overseen by Eschwey himself. The previous head of the injection moulding, Dr. Lutz Weisbecker, has resigned and is being replaced by Battenfeld managers Dr. Fritz Dorner (Meinerzhagen) and Reinhard Gruber (Kottingbrunn).
Observers will watch developments in the Battenfeld injection moulding segment closely over the next several months. One thing appears certain: Either the business will find its niche, or sale plans will be a topic again.
According to SMS managing board member Dr. Helmut Eschwey, Battenfeld/SMS, with EUR 180m in annual sales, can now claim 30% of this market segment. But he remarked that the Cincinnati deal is just one step on the way to making the German machinery manufacturer an “extrusion powerhouse”, that is world market leader in the entire extrusion machinery sector. Within “a short time,” he projected, sales will increase from currently EUR 330m to EUR 500m, around a sixth of the overall market.
Eschwey hinted at impending acquisitions, in compounding as well as in fibre and cable technology, to complement the group´s strength in pipes and profiles and in films. SMS already has acquired a “substantial stake” in troubled Nextrom Holding SA (CH-1024 Ecublens Lausanne) and there are signs that it also may be interested in Werner & Pfleiderer GmbH (D-70466 Stuttgart), for which Thyssen Krupp sees “better possibilities for development” outside its corporate empire (see Plasteurope.com 22, 1999). Eschwey described the Stuttgart machinery manufacturer not only as “interesting,” but also “very well managed.”
Battenfeld/SMS also could be interested in taking over parts of its competitors´ portfolios, Eschwey suggested. However, he stressed that the group´s policy is always to preserve the acquired companies´ trademarks. He said businesses offering synergies in technology, R&D as well as procurement will be looked at.
After the breakdown of plans to sell the injection moulding subsidiary Battenfeld Spritzgießtechnik to Chicago-based Madison Capital Partners (see Plasteurope.com 01, 2000), Battenfeld apparently has found a “special role” for the firm within the group. While the business will not be expanded, separate performance targets will be defined for it. At the press meeting, Eschwey sought to cool down the heated exchange between SMS/Battenfeld and Madison about why the deal failed. Modifying comments emanating from Meinerzhagen earlier this month, he said the US partner had demanded too many changes in the weeks following the contract signing. After Madison reneged on some terms of the agreement, the German side declared it null and void, he added.
In what is described as an “exception” to the usual structure, management of the injection moulding subsidiary will take an unspecified stake in a newly created holding, to be overseen by Eschwey himself. The previous head of the injection moulding, Dr. Lutz Weisbecker, has resigned and is being replaced by Battenfeld managers Dr. Fritz Dorner (Meinerzhagen) and Reinhard Gruber (Kottingbrunn).
Observers will watch developments in the Battenfeld injection moulding segment closely over the next several months. One thing appears certain: Either the business will find its niche, or sale plans will be a topic again.
31.01.2000 Plasteurope.com [17582]
Published on 31.01.2000