The assets purchased, which are located in Beelitz near Berlin, comprise freehold buildings and production equipment which will be used to manufacture Umeco’s range of prepregs.
Umeco will employ 11 of the former employees of Fenotec.
Fenotec was placed into administration in December 2010 shortly after investing €5 million in new buildings and machinery in a failed attempt to enter the prepreg market. Umeco says this failure was caused by a shortfall in sales revenues resulting from the lack of an industry recognised range of products. Umeco expects to quickly add additional volume by manufacturing its own established range of prepreg materials in Beelitz. It will also distribute its range of composites products from the facility.
Umeco’s existing European prepreg facilities are in the UK and this acquisition provides both additional prepreg manufacturing capacity, and a distribution base in Continental Europe that will significantly reduce lead times to customers in Germany and Southern and Eastern Europe.
Umeco also announces today that it has been awarded €1.2 million of new business by a customer in Germany. This contract, which is for prepreg materials used in the manufacture of advanced composites components, is expected to be fulfilled over the next 12 months.
“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," says Andrew Moss, Chief Executive of Umeco. "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.”
UK headquartered Umeco plc is an international provider of advanced composite materials primarily to the aerospace and defence, wind energy, recreation and automotive industries. Revenue from continuing operations in the year to 31 March 2011 was £207.4 million and these operations had 863 employees in manufacturing and distribution operations in the UK, Europe and the USA.
