BAVARIA Industriekapital AG's French subsidiary contemplates selling
FONDERIE ALUMINIUM DE CLEON to RENAULT
The aluminium high-pressure die-caster Fonderie Aluminium de Cléon
(FAC) owned by BAVARIA Industriekapital AG ("BAVARIA") delivers
transmission housings and engine blocks to Renault, PSA and Getrag
Ford. BAVARIA acquired the foundry at the end of 2007 as a part of
the takeover of three French entities from Teksid SA in Luxembourg.
FAC was created in 1964 by Renault on the site of the foundry in
Cléon. In 1999, Renault sold its foundries to Teksid, a subsidiary of
FIAT in which Renault acquired a share of the capital. The previous
Renault foundries were all world leaders in foundry technology.
After successful negotiations between BAVARIA and Renault, the Work
Councils of FAC and Renault's plants in Cleon have been informed that
Renault intends to revive its aluminium die casting activities in
Cléon (FAC) through a dedicated subsidiary company.
Renault plans investments in FAC in order to further improve the
competitiveness of the company, which will continue to be based on
the existing site. It is also planned to implement the Renault
Production System (SPR) to complement the turnaround program already
initiated by BAVARIA. Within this framework, Renault will secure
employment for the employees of FAC, either on the site of Cléon, or
in other production units of the Renault Group, in particular in
High-Normandy.
BAVARIA's president of Teksid France, Hans Magnus Andresen,
commented: "This is a win-win solution for all parties involved. We
acquired three French companies from Teksid, and we quickly
determined that two were best fit for a strategic industry owner. We
have already sold Metaltemple and now we recommend to our work
council in Cleon to endorse this transaction with Renault. The Teksid
transaction is another good demonstration of BAVARIA`s turnaround
expertise. Last year, the total losses in the French group we
acquired from Teksid were 30 mil. Euro. This year, our remaining
portfolio company is likely to operate profitably with revenues of
around 100 mill. Euro. We are also committed to invest a considerable
amount to improve the efficiency of the operations and to support the
new customers we have already gained. We are thrilled to have managed
this turnaround in less than 6 months and at the same time secured
all the jobs in all facilities. Once again, the BAVARIA turnaround
model has showed its solidity."
BAVARIA Industriekapital AG's 2006 revenues were EUR 333 mil., with
an EBITDA of EUR 51 million. The company is listed in the Entry
Standard on the Frankfurt Stock Exchange (ISIN DE0002605557).
Headquartered in Munich, this industrial group invests in companies
with strong market positions and a potential to improve profits.
For further information please contact:
BAVARIA Industriekapital AG
Frau Svea Tröster
Investor Relations
svea.troester(AT)baikap.de
Tel +49 (0)89 7298 967 20.
