Voith moving towards greater sustainability in paper sector
HEIDENHEIM, GERMANY - VOITH Global, while moving to acquire more companies involved in the pulp and paper sector, is focusing that expansion on the growing demand for world-wide sustainability.
“As announced at our financial statement press conference in December, we are expanding our core business in the area of sustainability, decarbonization and digitalization. The electrification of the power train, and paper, as a sustainable raw material, are playing a central role in this,” said Voith Global president and CEO Dr. Toralf Haag.
Voith’s direction into sustainability is furthered by its announcement in late December 2019 that it plans to take 70% of ELIN Motoren GmbH, a manufacturer of electric motors and generators that employs 900 and has approximate annual revenue of EUR 120 million.
At the same time, the company has announced a planned 90% takeover of Toscotec S.p.A., a manufacturer primarily of tissue paper machines with 200 employees and approximate annual revenues of EUR 100 million.
ELIN Motoren GmbH is a global high-tech enterprise for electric motors and generators and provides customized solutions for industrial applications. Based in Weiz, Austria, ELIN Motoren GmbH focuses on electric machinery, low- and medium-voltage motors and generators, especially for wind energy and decentralized energy generation. With its product portfolio, ELIN Motoren GmbH serves the target markets of wind energy, plastic, tunnel construction and mining, oil and gas, plant engineering, and power plants. The portfolio of ELIN Motoren GmbH is an outstanding addition to the existing industrial-drive solutions. It strengthens the position of Voith as a technology-independent supplier of electrical and mechanical drive systems.
Toscotec is a globally active supplier of plant equipment, products and services for the paper industry. It focuses on tissue machines for manufacturing sanitary papers such as paper towels and paper napkins. The tissue segment is an area exhibiting aboveaverage growth within the paper market. With this acquisition, Voith is able to further expand its position as a full-line supplier in all segments of the paper industry.
Both planned acquisitions had Voith signing purchase agreements by the close of the 2019 calendar year. It is expected that the acquisition of the shares in ELIN Motoren and Toscotec will be completed during the first six months of the 2020 calendar year, and it is conditional on obtaining all government approvals and the fulfilment of other common closing conditions. All parties involved are keeping the purchase prices confidential.
Voith has also now successfully completed the purchase of Swiss paper technology enterprise BTG for EUR 319 million from listed British company Spectris plc after announcing a purchase agreement was in place last fall. The transaction was completed December 1, 2019. BTG Group is a multinational provider of integrated, highly specialized process solutions for the global pulp and paper industry.
“The acquisition of BTG is an important strategic step for Voith. With BTG and its portfolio that is highly complementary to our own products and services we strengthen our position as full-line supplier”, states Andreas Endters, CEO of Voith Paper. “Together we will have some tremendous opportunities to deliver more value to our customers, including integrated technologies, as well as Papermaking 4.0 and Industrial Internet of Things (IIoT) solutions. This will also present more opportunities for our employees going forward”, says Rob Crossman, BTG president.
The Voith Group is a global technology company. With its broad portfolio of systems, products, services and digital applications, Founded in 1867, the company today has more than 19,000 employees, sales of € 4.2 billion and locations in over 60 countries worldwide and is thus one of the large family-owned companies in Europe.