STOCKHOLM, Sweden, Jan. 23, 2003 (PRIMEZONE) -- Boliden AB (Other OTC:BDNNF) (TSE:BLS) (Stockholm:BOL) and Hexagon (Stockholm:HEXAb) have signed a letter of intent to form a joint venture between Boliden Gusum AB and Nordic Brass AB. The new company will be owned in equal parts by Boliden and Hexagon. The merger will create a strong Nordic brass company with improved competitive strength and profitability. The annual turnover of the new company is estimated at 500 MSEK.
The European brass market, characterised by over-capacity and weak profitability, is now facing a far-reaching structural change. With the new company, Boliden and Hexagon will take an active part in the necessary consolidation of the European brass market. The new company will also create the right conditions to meet increased customer demand for a wider product range, flexibility and service.
"The merger of the two companies is a way of meeting growing global competition. The restructuring of the North American brass industry started several years ago. In the southern and central parts of Europe the brass companies, although still many in numbers, are much bigger than their Nordic competitors. A new company creates a platform for a long-term profitable Nordic player," said Ola Rollen, Hexagon's CEO.
"The deal is logical from an industrial point of view and it will create many synergies. We have now started the necessary restructuring of the European brass industry and we see a considerable potential for Boliden's brass operations by taking an active part of this process," said Jan Johansson, Boliden's CEO.
The merger is subject to the approval of the Swedish Competition Authority.
For further information, please contact:
Jan Johansson, Boliden's CEO tel: +46 8 610 16 02 Bengt Olof Johansson, Vice President of Boliden Fabrication tel: +46 70 217 69 89 Ola Rollen, Hexagon's CEO tel: +46 8 601 26 20 Torbjorn Wistrand, Hexagon Vice President of Operations tel: +46 8 601 26 20 This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: www.waymaker.net/bitonline/2003/01/23/20030123BIT00190/wkr0001.doc www.waymaker.net/bitonline/2003/01/23/20030123BIT00190/wkr0002.pdf