KHD closes sale of unit, focus on core cement business
KHD Humboldt Wedag International Ltd (KHD) and McNally Bharat Engineering Co Ltd (MBE) have announced that MBE’s wholly-owned Singapore subsidiary, MBE Holdings Pte Ltd, has completed the purchase of KHD’s coal and minerals operations and manufacturing facility in Cologne.
The transaction is part of KHD’s strategy to focus on its core cement business. KHD intends to develop an operational structure that is closer to its customers and has already created new customer service centers around the world. Part of this focus on the core business will mean a much greater emphasis on customer services and KHD intends to build a stronger market presence in the medium-term.
KHD’s goal is to create one integrated KHD team offering competitive products and services and to become a customer focused service company providing environmentally friendly technology.
KHD has retained its Roller Press (HPGR) products and will continue to develop this product in the minerals sector in the future, where we see numerous opportunities. This product offers significant energy saving compared to similar competing technologies and is a good example of KHD’s increased focus on environmentally friendly products.
Jouni Salo President of KHD commented, "The consideration was above the book value of the assets sold and will result in the transfer of around 225 employees in the coal and minerals operations and 108 at the manufacturing facility in Cologne to MBE. KHD would like to thank these employees for their professionalism during this transaction, which commenced at the start of 2009, and wish them every success in the future. We believe that this is a good outcome for all parties involved and that MBE will be an excellent partner for the coal and minerals operations and the workshop in Cologne.
The sale of the manufacturing facility in Cologne means that KHD will no longer have a captive manufacturing base and this will significantly lower the fixed cost base of our business as well as giving the company total flexibility to provide the best solutions for our customers, wherever they are located. We will however continue to work very closely with MBE in the future as they will become one of KHD’s key suppliers and we look forward to building a mutually beneficial and long term relationship with them." Published under Cement News
