1st Mar 2005 07:03
Bodycote International PLC01 March 2005 1 March, 2005 Bodycote Corporate Developments - Poland, Libya and Qatar Introduction Bodycote International plc is pleased to announce several corporate developments- the acquisition of the largest independent heat treatment business in Poland,the establishment of a Materials Testing business in Libya and the wider Maghrebregion, which includes Algeria and Tunisia, and the formation of a MaterialsTesting joint venture in Qatar through the acquisition of the assets of QatarInspection Services. Commenting on these initiatives, John Hubbard, Chief Executive, said; "These deals clearly demonstrate that we are successfully implementing ourstrategy of pursuing bolt-on acquisitions in our core heat treatment businesswhich carefully expand our geographic reach and the development of our materialstesting business into fast growing markets. We are applying the proceeds of ourrights issue in a targeted manner, concentrating on those opportunities whichmaximise return on capital." Heat Treatment - acquisition in Poland Bodycote is pleased to announce the acquisition of the entire issued sharecapital of Nitrex-HTC Sp.z.o.o and Castelli-Nitrex Obrobka Cieplna Sp.z.o.o. Operating from four sites throughout Poland, the acquired businesses provideheat treatment services to local industry and are the largest independent heattreatment group in Poland with annual sales of ZL15m (£2.5m). The acquisition forms part of Bodycote's strategy to develop a significantpresence in the Eastern European market and serve the growing number of existingclients who are establishing manufacturing activities in the region. Materials Testing Group takes first step into Libyan market Bodycote Materials Testing Group is pleased to announce that it has entered anagreement with North African Services Company (NASCO) for NASCO to act asBodycote's sole agent in the Maghreb region. The progressive opening of theLibyan energy business to Western companies is creating new opportunities forBodycote. It is envisaged that, initially, the Group's business will be mainlywithin the Libyan oil & gas sector. However, as infrastructure developmentprogrammes take a hold, Bodycote anticipates mirroring its Middle East businessmodel, with involvement in major construction programmes. NASCO's principal, Mr Mohamed Mhenni, has many years experience in the NorthAfrican energy sector and has laboratory related sales experience, which will bea major benefit. Mr Mhenni will be assisting Bodycote with sales effort, raisingawareness of the Bodycote name and range of services and providing on-the-groundsupport for Bodycote's operations. The venture has already successfullycompleted its first assignment in the oil and gas sector following a desert sitevisit by a Bodycote materials consultant. It is envisaged that Bodycote willeventually open a laboratory in the region. Materials Testing Group forms Qatar Joint Venture and Acquires the LaboratoryAssets of Qatar Inspection Services Bodycote Materials Testing Group announces the formation of a new joint venturein the State of Qatar through the acquisition of the laboratory assets of QatarInspection Services (Q.I.S.). The joint venture partner is Mr. Keith Harmer, aBritish national who is the major shareholder in Q.I.S. The company, which will trade from a purpose-built facility in Doha, willprovide metallurgical testing, corrosion testing, building materials testing,specialist civil engineering monitoring, analytical chemistry and environmentaltesting and monitoring services. The acquisition and formation of the new company brings the number of Bodycote'spermanent major laboratories in the region to six, in addition to numerous sitebased laboratories on major project sites throughout the region. The Qatar market is already an important market for Bodycote's Middle Eastoperations and the new business will service what is the Middle East's fastestgrowing economy, driven by massive natural gas and oil revenue, which in turn isfuelling large scale government and private sector spending. For further information please contact: Bodycote International plc Tel: +44 1625 505300John D Hubbard, Chief Executive Financial Dynamics Tel: +44 20 7831 3113Jon SimmonsSally Lewis This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Bodycote