UPPLANDS VASBY, Sweden, June 21, 2004 (PRIMEZONE) -- KMT is of the opinion that service and aftermarket have an interesting potential and is, therefore, acquiring the American service company, Cincinnati Grinding Technology (CGT).
CGT offer service, reconstruction and maintenance of precision grinding machines supplied by Cincinnati Milacron Inc. The installed machine base from Cincinnati Milacron amounts to 5,000 of which 70 per cent is located in North America. CGT, which has around ten employees, reported sales of USD 2 million for 2003 and the potential for growth is considered to be good.
"CGT has access to a comparatively large installed base and fits very nicely into KMT strategically. Through the acquisition we continue our growth in the international service market," says Lars Bergstrom, CEO of KMT.
The operation will be run as a profit centre and report to Lidkoping Machine Tools AB. It will be consolidated into KMT from 1 June 2004.
"We are acquiring CGT to focus more on service and reconstruction which is especially important in the American market," says Johan Westberg, President of Lidkoping Machine Tools AB.
For further information, please contact:
Lars Bergstrom, CEO, Karolin Machine Tool AB Tel: +46 8-594 211 50 or via e-mail: lars.bergstrom@kmt.se
Johan Westberg, President, Lidkoping Machine Tools AB Tel: +46 510 880 00 / +46 70 558 82 98 e-mail: johan.westberg@lidkoping.com
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