Sulzer Acquires OSU Maschinenbau GmbH

18.05.2004

Effective May 1, 2004, Sulzer Ltd acquires OSU Maschinenbau GmbH, based in Duisburg, Germany. This acquisition will enable Sulzer Metco to increase its product range in thermal coatings, which will now include arc spray equipment.

The OSU Maschinenbau product portfolio, which until now has primarily been available in Europe, will benefit from Sulzer Metco's global distribution network. OSU Maschinenbau GmbH has 26 employees and generated sales of CHF 6 million (EUR 4 million) in the year 2003.

Subject to the still pending approval of the anti-trust authorities, Sulzer Ltd will acquire OSU Maschinenbau GmbH, based in Duisburg, Germany with effect from May 1, 2004. The newly-acquired company was previously part of Grillo-Werke Aktiengesellschaft, Duisburg. It occupies an important position in the arc spray segment and focuses on the production and distribution of equipment as well as the sale of related materials, mostly zinc and zinc-alloyed wires.

Thanks to Sulzer's global distribution system, the equipment will, in the future, be marketed worldwide. The addition of arc spray equipment, and the distribution of zinc and zinc-alloyed wires, will also enable Sulzer Metco to expand its own product range. This equipment and these materials are used primarily in protection against corrosion. Sulzer Metco is thereby reinforcing its position in the lower price segment of the thermal coatings market and increasing its presence in the oil and gas, automotive, construction, and paper markets.

The previous owner, Grillo-Werke Aktiengesellschaft, is a family owned company that mainly produces and distributes zinc products as well as inorganic zinc and sulphurous chemicals. Sulzer Metco and Grillo-Werke have a long-standing and successful working relationship that will be continued. OSU Maschinenbau GmbH will remain at its present location; the current employees and the managing director, Dr. Michael Knepper, will be retained.

Sulzer Metco is a global leader in surface technology solutions and services. The division offers a broad range of thermal spray, thin film, and other advanced surface technology equipment, integrated systems, and materials, as well as specialized coating and surface enhancement services and manufactured components for selected industries. A global customer support service completes its portfolio. Sulzer Metco provides a global manufacturing, distribution, and service network and caters to aerospace, power generation, automotive, as well as other strategic growth industries. Sulzer Metco employs about 1600 people worldwide. Net sales in 2003 totaled CHF 424 million.

The Sulzer Corporation is comprised of the four core divisions Sulzer Metco (surface technology solutions and services), Sulzer Turbomachinery Services (service and repair of thermal turbomachinery), Sulzer Pumps (pumping solutions and services), Sulzer Chemtech (components and services for separation columns and static mixing), and the venture division Sulzer Hexis (fuel cell systems for residential applications). Sales in 2003 totaled CHF 1826 million. Sulzer currently employs about 9000 people worldwide.

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