MAAG Gear AG, FLSmidth’s Swiss-based subsidiary, will in future focus on gears for the cement and minerals industries.
Against this background, FLSmidth has received a proposal for the acquisition of MAAG Gear’s marine and turbo gear business. The prospective buyer is RENK AG, a German gear producer which is part of the MAN Group. It is RENK’s intention to maintain part of the production and continue the global servicing of marine and turbo gears at Winterthur in Switzerland.
FLSmidth intends its activities in MAAG Gear, Winterthur to concentrate in future on the sale, servicing, development and design of gears for the cement and minerals industries, whilst production will take place at MAAG’s existing plant in Poland.
A final agreement is expected to be signed within one or two months. The transaction will not affect the earnings for 2006 and 2007, but is expected to have a small positive effect on earnings in the longer term.