INCAP ELECTRONICS PURCHASED ABB CONTROL’S STEEL SHEET OPERATION
Incap Electronics Ltd., which constitutes the electronics sector of Incap Group, signed an agreement with ABB Control Oy, an ABB subsidiary, concerning the purchase of steel sheet component manufacturing.
In accordance with the agreement signed today, the manufacturing of steel sheet components by ABB Control Oys Low-voltage Systems Division will be taken over by Incap Electronics Ltd. from 1 Dec. 1999 onwards. The total purchasing price will be 4.1 million euro. The share of machinery and equipment out of this will be 2.5 million euro, which will be covered by a leasing arrangement. The purchasing price will be specified after an assessment of inventories before the handover.
The transaction will allow both parties to concentrate on their core competencies and will strengthen the cooperation between ABB and Incap Electronics. The main customers of the business operation that now changed hands are ABB companies.
The Vaasa unit will expand the range of the contract manufacturing services provided by Incap Electronics, and its skilled personnel will allow further growth in the future. The annual net turnover of this unit is about 10 million euro (about 60 million FIM), and it employs about one hundred people, who will be taken over by Incap Electronics Ltd. as old employees.
Incap Electronics Ltd. is a fully owned subsidiary of Incap Corporation. The net turnover of the company during January June 1999 was 18.0 million euro. In addition to the new Vaasa unit, Incap Electronics has two manufacturing units, of which the Vuokatti unit specialises in electronics and the Helsinki unit in mechanics. Including the new unit, the company employs 525 people.
Incap Group is a contract manufacturer of electronics and furniture. The net turnover of the Group in January June 1999 was 34.9 million euro, and the total number of employees is now 790.
Oulu, 1 November 1999
President & CEO