In a bid to become a global one-stop centre for process equipment in the oil and gas, petrochemical, chemical, power and industrial services industries, Malaysia's KNM Group Bhd plans to acquire Germany's Borsig Beteiligungsverwaltungsgesellschalf mbH. The acquisition is in line with the group's strategy to shift its product range from mid-end to high-end products. KNM expects to complete the RM1.7 bln (Euro 350 mln) acquisition by mid-year.
The purchase of the entire equity stake awaits necessary approvals, including from KNM shareholders at an EGM to be convened. 30% of the group's current production for high-end products, is targeted to be increased to 45% this year, and upto 60% later. Borsig is a manufacturer of boilers, steam turbines and engines and locomotives as well as valves, compressors and process equipment, and a global leader in process heat exchangers, quench coolers, high pressure heat recovery systems, and membrane technology for industries.
Since listing in August 2003, KNM has successfully acquired rivals in Italy and Australia in a bid to gain new technology and increased its global market share in the process equipment sector. KNM has manufacturing facilities in Malaysia, Australia, Italy, China, United Arab Emirates, Indonesia, Brazil and Canada.