Press release February 20, 2018
Full year report 2017
2017 has been an intense and busy year: investments, consolidation of production, and business acquisitions – all in line with our growth strategy. During the year, BEWi also became a public company by issuing a bond loan that will finance our growth, and which is also listed on Nasdaq Stockholm.
The intended acquisition of Synbra, the Dutch particle foam specialist, is definitely the biggest change to BEWi’s future operations. If the acquisition gains regulatory and Works Council approval, and provided that we can issue a bond loan for its financing, it will be carried out in early 2018. Synbra has particle foam operations in the Netherlands, Denmark, Germany and Portugal, which means a geographical supplementation and, in terms of turnover, more than doubling of BEWi’s size. Synbra’s European focus will fit very well with BEWi’s existing operations in the Nordic countries. The acquisition is a logical step on the road towards our vision of becoming a market leader, and of working close to our customers.
In 2017, we acquired 90 percent of BEWi M-plast and 60 percent of Solupak (BEWi Insulation) in Finland. Both operations are now integrated into the Group. In January 2018, we also purchased 60 % of Ruukin, a Finnish manufacturer of insulating material. All together, we are now a strong contender in the Finnish market.
Much time and commitment was also required from BEWi’s management group and employees for investments and consolidation of production: After an earlier decision about investing in extrusion technology at our plant in Porvoo, Finland, production of what is known as grey expanded polystyrene (grey EPS) – a material with very good insulating properties – could begin in the third quarter of 2017. By offering a broader product portfolio with grey standard and flameproof EPS, we have strengthened our position in northern Europe.
The consolidation plan for manufacturing continued to take shape as decisions were made to move operations in Denmark from the plant in Såby to the plant in Hobro. In connection with the move, which will take place during the latter half of 2018, we will also be investing in our existing plants for modernization and efficiency enhancements. Moving production also became of topical interest after the acquisition of assets from the Por-Pac plant in Lindesberg in Sweden. We consolidated operations into our Packaging business area, and transferred production to BEWi’s existing production facilities in Sweden and Denmark.
2017, an eventful year with its comprehensive strategy work and a simultaneous focus on continuing to deliver to our customers, will be followed by a 2018 that will largely deal with consolidation and integration of the new operations, work on operational improvements, and more efficient internal processes. The ground has been laid for a competitive European contender.
For further information, contact Marie Danielsson, CFO
Tel: +46 70 661 0047
The information is such that BEWi Group AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on February 20, 2018