Malaysia's KNM Group to buy German engineering firm for US$522 mln

06-Mar-08

In a bid to move up the value chain and attain economies of scale, KNM Group, Malaysian energy service provider will buy German engineering firm Borsig BBetv for 1.67 billion ringgit (US$522 mln). KNM makes process equipment for the energy and petrochemical industries, whereas Borsig specialises in component and process equipment and plant construction. Borsig's products are used in high-temperature, high-tolerance and high-pressure applications in the oil and gas and chemical and petrochemical industries, among others. With the acquisition, the enlarged group will be able to utilise greater economies of scale on procurement, treasury functions as well as other group-wide component support through our facilities worldwide.