Bodycote International PLC
01 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 Maghreb
region, which includes Algeria and Tunisia, and the formation of a Materials
Testing joint venture in Qatar through the acquisition of the assets of Qatar
Inspection Services.
Commenting on these initiatives, John Hubbard, Chief Executive, said;
'These deals clearly demonstrate that we are successfully implementing our
strategy of pursuing bolt-on acquisitions in our core heat treatment business
which carefully expand our geographic reach and the development of our materials
testing business into fast growing markets. We are applying the proceeds of our
rights issue in a targeted manner, concentrating on those opportunities which
maximise return on capital.'
Heat Treatment - acquisition in Poland
Bodycote is pleased to announce the acquisition of the entire issued share
capital 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 provide
heat treatment services to local industry and are the largest independent heat
treatment group in Poland with annual sales of ZL15m (£2.5m).
The acquisition forms part of Bodycote's strategy to develop a significant
presence in the Eastern European market and serve the growing number of existing
clients 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 an
agreement with North African Services Company (NASCO) for NASCO to act as
Bodycote's sole agent in the Maghreb region. The progressive opening of the
Libyan energy business to Western companies is creating new opportunities for
Bodycote. It is envisaged that, initially, the Group's business will be mainly
within the Libyan oil & gas sector. However, as infrastructure development
programmes take a hold, Bodycote anticipates mirroring its Middle East business
model, with involvement in major construction programmes.
NASCO's principal, Mr Mohamed Mhenni, has many years experience in the North
African energy sector and has laboratory related sales experience, which will be
a major benefit. Mr Mhenni will be assisting Bodycote with sales effort, raising
awareness of the Bodycote name and range of services and providing on-the-ground
support for Bodycote's operations. The venture has already successfully
completed its first assignment in the oil and gas sector following a desert site
visit by a Bodycote materials consultant. It is envisaged that Bodycote will
eventually open a laboratory in the region.
Materials Testing Group forms Qatar Joint Venture and Acquires the Laboratory
Assets of Qatar Inspection Services
Bodycote Materials Testing Group announces the formation of a new joint venture
in the State of Qatar through the acquisition of the laboratory assets of Qatar
Inspection Services (Q.I.S.). The joint venture partner is Mr. Keith Harmer, a
British national who is the major shareholder in Q.I.S.
The company, which will trade from a purpose-built facility in Doha, will
provide metallurgical testing, corrosion testing, building materials testing,
specialist civil engineering monitoring, analytical chemistry and environmental
testing and monitoring services.
The acquisition and formation of the new company brings the number of Bodycote's
permanent major laboratories in the region to six, in addition to numerous site
based laboratories on major project sites throughout the region.
The Qatar market is already an important market for Bodycote's Middle East
operations and the new business will service what is the Middle East's fastest
growing economy, driven by massive natural gas and oil revenue, which in turn is
fuelling large scale government and private sector spending.
For further information please contact:
Bodycote International plc Tel: +44 1625 505300
John D Hubbard, Chief Executive
Financial Dynamics Tel: +44 20 7831 3113
Jon Simmons
Sally Lewis
This information is provided by RNS
The company news service from the London Stock Exchange
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