NEWS
FinnvedenBulten signs JV deal with Gaz
FinnvedenBulten has confirmed it has signed a term sheet with Russian company Gaz Group whereby it intends investing approximately 6.6 million euros in return for a 63 percent ownership in a new joint venture company that will supply fasteners to the automotive industry in Russia.
T
he joint venture was first mooted last year. At that time the prospective partners said the agreement would provide FinnvedenBulten with its first production site in Russia. As well as supplying the domestic automotive sector it was planned that fasteners would also be exported to Bulten’s global customer base.
Gorky automobile plant, which already manufactures fasteners for Russian customers, was
expected to provide the production and distribution infrastructure, while Bulten would provide the development of new products and technologies. Russia has protective trade measures on imported fasteners, which combined with the rate
of growth of its domestic automotive industry, was seen as creating great opportunities for the efficient development of local manufacturing. In its interim report for Quarter 1 2012 FinnvedenBulten reported organic growth on a weaker
market. Net sales reached SEK 807 million (aproximately 202 million euros) up 1.4 percent on a strong same quarter last year. EBIT earnings were SEK 40 million down from SEK 54 million same period 2011, reducing the operating margin to 5 percent compared to 6.7 percent for Quarter 1 2011. Profit after tax for the quarter was SEK 30 million. Order bookings amounted to SEK 865 million up 3.1 percent on the same period 2011. CEO and president, Johan Westman, attributed the negative effect for earnings on disturbances
in production at the beginning of the quarter combined with extra costs incurred by Finnveden Metal Structures for the start up of new customer projects. In respect of the Bulten division he said development “remains good and after the end of the period the division signed a term sheet with GAZ Group concerning the joint venture company that will supply fasteners to the automotive industry in Russia. The automotive industry has expressed great interest in the company’s establishment in Russia. The establishment is an important step in our strategy for expansion on growth markets.”
Ruia Global Fasteners declares insolvency
Ruia Schraubenbereich, the European subsidiary of Indian Ruia Group, which acquired Acument Germany’s production plants in February 2011, declared insolvency at the end of March this year.
Pre-crisis the Acument operation reported annual turnover of around 800 million euros. When Ruia acquired the Acument business it had around 130,000 square metres of production space at plants in Beckingen, Neuwied, Neuss, Schrozberg and Cologne. It employed 1,400 people. It processed around 55,000 tonnes of metal annually producing more than 3.2 billion parts for the automotive industry, which included supplying VW, BMW, Daimler, MAN, TRW and Ford. 2010 turnover was expected to be in the order of 230 million euros. Ruia acquired the Acument businesses with apparently very little actual cash investment -
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the Group told Indian media at the time that its investment was no more than 4 million euros, with the deal primarily financed by a three years sellers’ credit. Earlier this month Draftex, another 2009 German Ruia acquisition servicing the automotive
sector, was also declared insolvent. The fastener business works council told the Saarbruecker Zeitung paper “the company
had no problem with orders, the orders books were full”. The insolvency it said was because Ruia did not have the money to invest in the operations. At the time the insolvency was announced German financial media reported that worker’s
salaries would be paid until May. Dr Kebekus was quoted as saying, in the light of the strong market position of the company, that he was optimistic about achieving a sale and protecting a significant number of jobs.
Fastener + Fixing Magazine • Issue 75 May 2012
dministrator Dr Frank Kebekus of Düsseldorf insolvency practice Kebekus & Zimmermann was appointed. Acument GmbH declared self-administered insolvency in 2009 following a 40 million euro loss as a result of the collapse of automotive demand following the financial crisis.
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