Boliden's British brass company, Boliden MKM Limited, has acquired the operations of the British brass manufacturing company, Cerro Extruded Metals Limited, from the Marmon Group Limited. This acquisition will enable Boliden to merge the two businesses and concentrate production, thereby creating a stronger brass producer in the UK with increased competitiveness and enhanced profitability.
In April 2003, Boliden MKM signed a letter of intent regarding the acquisition of Cerro Extruded Metals Limited operations from the Marmon Group Limited.
"This acquisition is entirely in line with Boliden's ambition to play an active part in the ongoing restructuring of the European brass industry. This acquisition creates industrial synergies which will enable us to establish a stronger player in the British brass industry with increased profitability", states Jan Johansson, President and CEO of Boliden.
The purchase price is GBP 5 million and the acquisition will primarily be financed by means of a substantial reduction in the operating capital requirement as production is concentrated.
This acquisition is expected to generate an increase in Boliden MKMs turnover to GBP 60 million and a total annual production of 50 000 tonnes of brass.
This agreement has been approved by the appropriate competition authorities in the UK and Germany.
For further information, please contact:
Jan Johansson, President and CEO, Boliden,
telephone +46 8 610 1602, + 46 70 555 02 02
Bengt Olof Johansson, Vice President, Boliden Fabrication,
telephone +46 70 217 69 89