Sumitomo/Demag: Contract Finalized
It is official at last – the new owner of the Demag Plastics Group is Japanese. The contract already signed in early February for the sale of the Schwaig-based injection molding machine manufacturer to Sumitomo Heavy Industries Ltd became legally binding on March 3. For Sumitomo, it was worth around EUR 77.5 million to take over the traditional company, which was formerly part of the Mannesmann Group but had been owned by the US financial investor Madison Capital Partners since May 2006.
Not surprisingly, Dr. Klaus F. Erkes, CEO since the end of 2005, has since left Demag. His position has been taken over by Dr. Tetsuya Okamura of Sumitomo Heavy Industries who will represent the society together with the former chief financial officer, Uwe Rohfleisch.
The merger creates a big player among the globally active heavyweights in the industry. Sumitomo Heavy Industries achieved annual sales of EUR 3.6 billion in 2006 and is listed on the Tokyo stock exchange. In Asia, the company is a leading manufacturer of injection molding machines, in particular with electrical drives. Annual sales in this industry amount to more than EUR 350 million. The Demag Group, with factories in Germany, China and India, achieves annual sales of over EUR 250 million.
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