Opcon acquires unique Swedish product

Opcon acquires unique Swedish product Opcon AB today acquired the Laminova group, which develops manufactures and markets a unique, patented heat exchanger that is sold to companies such as GM and Ford in the US and Land Rover in the UK. "The acquisition of Laminova has major benefits for both businesses. Laminova's heat exchanger strengthens Opcon's position in the fuel cell market, while Laminova can benefit from Opcon's contacts in the auto industry. Together, we can market air systems, compressors and heat exchangers to engine manufacturers and the crucial after-sales market in the US. Laminova's American companies give Opcon a foothold in the US. These businesses complement each other superbly," says Sven G. Oskarsson, CEO of the Opcon Group. Opcon is acquiring three companies: Laminova Produktion AB of Upplands- Väsby, Sweden, and Laminova USA Inc and Laminova Heatex Inc, both of the US. The latter will change its name to Opcon Inc. The Laminova group had sales in 2000 of SEK 40.8 million (41.0 m) and an operating profit of SEK 7.5 million (9.9 m). The forecast for 2001 is for a profit of around the same size, giving Opcon positive net cash flow of SEK 7 million and a significant boost in profits. When Opcon takes over, liquid funds in Laminova will be SEK 21.7 million. Exports account for nearly 100% of sales, of which 80% is to the US and 20% to the UK. Laminova's heat exchanger is unique in its design, it is cost-effective and highly competitive. It is also easy to assemble and has fewer components than competing products. Applications include cooling of automatic gear boxes, engine and servo control. Customers include the major automakers, and the after-sales market in the US is considered to be especially important. Production takes place at the Upplands-Väsby site and some assembly is performed in the US. The product and the production process are protected by patents. The production patent runs to 2016. The process entails an incomparable degree of surface enlargement and thus maximises the use of the aluminium material. There is no material waste. Laminova has QS 9000 certification in both Sweden and the US, which means that the company meets the strict quality requirements set by the world's automakers. "There is still a large untouched market for the company's products," explains Sven G. Oskarsson. "Up to now, Laminova has sought niche customers with relatively small volumes and high profitability, such as applications in US police cars. Opcon will market the heat exchangers to automakers as a separate unit or as a complete air system, together with Opcon Autorotor AB's compressors. Several projects are under way." One synergy benefit will be to introduce Laminova's patented heat exchanger to Opcon Autorotor AB's existing customer base within the fuel cell market. Opcon Autorotor is currently involved in most of the key fuel cell projects in partnership with the world's major carmakers. Fuel cells are considered to be the power source for the cars of the future, replacing the combustion engine eventually, mainly because the fuel cell engine has no hazardous emissions. "One of the difficulties that fuel cells must overcome is balancing temperatures. This means a big opportunity for Laminova's heat exchangers. Laminova USA Inc is located in the area where four of the world's largest fuel cell development companies are based, which gives them a geographic advantage," says Sven G. Oskarsson. There are also opportunities for using Laminova's heat exchanger for industrial applications, such as cooling electricity. The acquisition also establishes Opcon in the US market, which is of great significance for SEM AB and Opcon Autorotor AB. Opcon AB has been working for some time to build up a technology sales centre in the US. The Laminova acquisition gives the Group a US base and an opportunity to serve existing and potential customers on a local basis, while planning for future production. "The acquisition of Laminova is strategically right because it gives us an established sales channel in the US. It gives us a better capability to reach the US market, which we consider to be the largest and most interesting for our products, such as ignition and engine management systems and air supply systems for combustion and fuel cell engines," adds Sven G. Oskarsson. Laminova and its products will be presented in greater details at the Opcon AGM on 26 april at Armémuseet in Stockholm. For further information regarding this press release, please contact Sven G. Oskarsson, CEO Opcon AB, tel +46 8-590 740 45, +46 70-625 81 21 Göran Falkenström, deputy CEO, Opcon AB, tel +46 8-590 740 45, +46 70-330 05 02 Lena Karlsson, head of information, Opcon AB, tel +46 8-590 740 45, +46 70- 326 74 03 Please also visit www.opconab.com and www.laminova.se Opcon's business concept is to develop, manufacture and market systems and products that help to generate clean and environment-friendly power. The Opcon Group had sales of SEK 256 million in 2000 and has around 335 employees at its plants in Åmål and Nacka, Sweden. The Group comprises SEM AB, SEM Drive AB and Transformator-Teknik AB, which have manufacturing in Åmål, Sweden, and Opcon Autorotor AB, based in Nacka, near Stockholm. The Group manufactures ignition systems and engine management systems, electro-mechanical devices, compressors and transformers. The Group's customers are mainly in the auto, small engine and engineering industries. Opcon AB is listed on the O list of the OM Stockholm Exchange. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/07/20010307BIT00500/bit0001.doc http://www.bit.se/bitonline/2001/03/07/20010307BIT00500/bit0001.pdf