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22nd November 2019, Helsinki

Ahlstrom-Munksjö to divest glass fibre reinforcement business

Ahlstrom-Munksjö glass fibre multiaxials are used in wind turbines, marine, sports, transportation, building applications and numerous industrial parts. © Ahlstrom-Munksjö

Ahlstrom-Munksjö glass fibre multiaxials are used in wind turbines, marine, sports, transportation, building applications and numerous industrial parts. © Ahlstrom-Munksjö

Ahlstrom-Munksjö has agreed to sell its glass fibre reinforcement business in Mikkeli, Finland, to Vitrulan Composites Oy, a fully owned subsidiary of Vitrulan Group and part of the family-owned industrial holding ADCURAM Group.

Ahlstrom-Munksjö’s Mikkeli plant produces glass and carbon based reinforcement fabrics. Main product offering consist of specialty glass fibre reinforcements for wind energy applications, as well as for other end-uses including marine and transportation applications, as currently manufactured in Mikkeli.

Growth opportunities

At the end of 2018 the plant employed about 100 people. Net sales were around EUR 30 million and the divestment will not have a material impact on Group’s comparable EBITDA. The debt free purchase price is EUR 6.5 million. The transaction is expected to be completed during the fourth quarter of 2019. The Mikkeli plant is part of Ahlstrom-Munksjö’s Filtration and Performance business area.

“We regularly assesses what is the most value creating structure for our businesses. Mikkeli’s woven technology  and customer base differ from the rest of the group and the plant’s conversion margin is lower. The business provides limited synergies to Ahlstrom-Munksjö’s portfolio. Vitrulan Group is a strategic and industrial player, and a good home for which our technology and skilful personnel is complementary and provide growth opportunities,” said Hans Sohlström, President and CEO.

Defending leadership position

Ahlstrom-Munksjö continues to produce glass fibre tissue at its plants in Karhula, Finland, and Tver, Russia. The company will defend and grow its leadership position in glass fibre tissue, where it has unique technical expertise and close customer relationships. In flooring applications, the company is a global leader and intends to expand its portfolio further.

Ahlstrom-Munksjö’s Mikkeli glass fibre reinforcement business is expected to bring significant growth to Vitrulan Group, which produces highly resilient glass fibre-based woven materials. Vitrulan has around 400 employees and generates net sales of around EUR 60 million. Its woven materials are used in public and private buildings, reinforcing and backing fabrics, laminates and special products.

ADCURAM comprises six subsidiaries with combined sales of more than EUR 400 million and around 2,500 employees globally. It actively develops its subsidiaries with the aim of significant growth. “We are excited about expanding our glass fibre reinforcement business and welcome our new colleagues to the Vitrulan family. Together, we will set the course for the next steps,” commented Ralf Barthmann, CEO of the Vitrulan Group.

www.ahlstrom-munksjo.com

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