Suppliers find safety in numbers
15 Jan 2000
The last six months of suppliers news has been characterised by a series of acquisitions and mergers. Of course, for every acquisition there is a sell off.
In a fiercely competitive environment there is safety in numbers. In the manufacturing world this translates to the economy of scale as larger companies buffer economic downturn by spreading exposure and enhancing their range of products and services.
As smaller suppliers feel the pinch of spiralling Sterling and a global economic downturn looms, survival takes precedence over independence, resulting in restructure across the industry in search of mutual synergy.
This month Weir Group Holdings has acquired SEBIM, a family-owned French valve and actuator manufacturer. Sebim specialises in pilot-operated safety relief valves for the process and oil, gas and petrochemical industries. Weir considers this deal as a strategic move to gain access to Europe, Africa and the former Soviet Union.
ABB has completed its acquisition of the automation unit of Alfa Laval, announced in June. ABB claims this purchase will bring greater value and productivity to its range.
USF, the international supplier of water treatment products and services has completed the acquisition of Bowen Water, located in Kilkenny, Ireland.
Flourocarbon has acquired the Flouroline business of Silvertown UK of Burton on Trent, both specialise in corrosion resistant piping systems.
The hygrometry products supplied by Protimer will now be distributed by General Eastern Instruments, both of the Bowthorpe Group.
