Umeco makes German acquisition to strengthen composites

A SUBSIDIARY of composites group Umeco has acquired the assets of a German firm in a deal worth almost £2m.

The deal, the first since the group sold its Pattonair supply chain business, has seen German subsidiary Umeco Composites purchase the assets of Fenotec Ges from administrators for the cash sum of €2.2m (£1.9m).

The acquisition is an early indication of the group’s intention to focus solely on the growing composite materials sector.

The assets purchased, which are situated in Beelitz, near Berlin, comprise freehold buildings and high quality production equipment which will be used to manufacture Umeco’s range of prepreg advanced composite materials. Umeco will employ 11 of the former employees of Fenotec.
 
Fenotec was placed into administration in December 2010 shortly after investing €5m in new buildings and machinery in a failed attempt to enter the prepreg – pre-impregnated – advanced composite materials market. Its failure was caused by a shortfall in sales revenues due to the lack of an industry recognised range of products.

Umeco said it quickly expected to add volume by manufacturing in Beelitz its own established range of prepreg materials. It will also distribute from the facility a wide range of structural and process materials for the advanced composites industry.
 
Umeco’s existing European prepreg facilities are in the UK and the group said the acquisition provided both additional prepreg manufacturing capacity, and a distribution base in Continental Europe that would significantly reduce lead times to its customers in Germany and Southern and Eastern Europe.
 
Umeco also announces today that it has been awarded £1.05m (€1.2m) of new business by a customer in Germany. The contract, which is for prepreg materials used in the manufacture of advanced composites components, is expected to be delivered over the next 12 months.
   
Andrew Moss, chief executive, said: “The acquisition of the Fenotec assets provides an excellent opportunity for Umeco to get closer to our customers in Continental Europe and to expand our manufacturing capacity at a time when the composites industry is enjoying significant growth.

“The equipment we are purchasing is virtually brand new, of a very high quality and alleviates the immediate term need to expand capacity at our existing facility in Manchester.”

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