Over the next two years, sia Abrasives will be investing an additional CHF 33 million in the expansion and optimisation of its conversion facilities and new production plant in Frauenfeld. In the year 2000, approval was already given for an investment programme of CHF 20 million for ground production. With this decision, the Board of Directors of the listed company is underscoring its confidence in the further development of the global market and clearly demonstrating its faith in Frauenfeld as a location for the manufacture of its abrasive products. The new investment programme will speed up delivery and pave the way for accelerated internal growth, which will in future continue to be complemented by appropriate acquisitions.
Since the mid-1990s, sia Abrasives has been pursuing a clearly focussed growth strategy. As a result of this, sales have now virtually doubled. This growth has primarily been achieved by internal measures complemented by appropriate acquisitions, such as that in summer 2001 of Fibral Abrasives in Halifax (UK), a manufacturer of non-woven abrasives. To ensure that sia Abrasives continues in future to grow more rapidly than the market as a whole, the Frauenfeld company makes ongoing investments in the expansion of its production capacities.
Growth accelerated by investments in conversionFor 2002 and 2003, the Board of Directors of sia Abrasives has decided on an additional investment programme of CHF 33 million. By means of these funds, the company intends to rationalise and simplify conversion in Frauenfeld by optimising processes. The planned expansion of conversion facilities has been carefully harmonised with the investment programme for ground production and information technology. In the course of this programme, the sia Group is investing CHF 20 million between 2000 and 2003. Thanks to this substantial investment of over CHF 53 million, sia Abrasives will be able to reduce throughput times, increase productivity and thus very considerably improve its ability to meet orders. In addition to its investments in conversion, the sia Group will also continue to develop ground production during 2002: production facilities will be adjusted for CHF 3 million, which will make it possible for wider abrasive belts to be made and thus open up new market segments. Additional investments will also be made in conversion facilities for non-woven products at the new location in Halifax (sia Fibral Ltd.) over the course of the coming 12 months.
Plans for further acquisitionsParallel to the internal growth that is being targeted, sia Abrasives also intends to continue using suitable acquisitions to strengthen and develop its position as the Number 3 on the world market. With these acquisitions, sia Abrasives is pursuing two goals: on the one hand, the Group aims to strengthen its position on both the European and overseas markets, while on the other it intends to widen its range of products. Growth plans at sia Abrasives are supported by a team of motivated staff, together with whose highly specialised know-how and above-average commitment, the new investment programme will make it possible to take active advantage of the opportunities that present themselves on the international market. "In the current climate of global economic slowdown, the investment programme of CHF 33 million that we have decided on is of particular significance. It emphasises our confidence in the future and is also an expression of our faith in Frauenfeld as a location for the manufacture of our abrasive products,” says Peter A. Schifferle, CEO and Member of the Board.
For further information
Peter A. Schifferle, CEO
Gerhard Mahrle, CFO
Phone: +41 52 724 45 75
Fax: +41 52 724 45 70
E-mail: ir@sia-abrasives.com
Internet: http://www.sia-abrasives.com/
® Correct nomenclature for sia Abrasives Holding AG
As there are other companies and organizations that use the same abbreviation as our company, we would be grateful if you could help to avoid any misunderstandings by always writing our name as follows: sia Abrasives (never just sia by itself). |
