Incap sells its mechanics factory in Vaasa to local management and focuses on electronics manufacturing

Incap Corporation                     
Stock Exchange Release       17 December 2014 at 9.20 am (EET)                                                              

INCAP SELLS ITS MECHANICS FACTORY IN VAASA TO LOCAL MANAGEMENT AND FOCUSES ON ELECTRONICS MANUFACTURING  

Incap Corporation has completed the negotiations concerning the sale of the operations in its mechanics factory in Vaasa to the factory’s management. The Vaasa factory is producing sheet-metal parts and rotor components, and the factory employs today 55 persons.

According to the sales contract the operations will be transferred to the buyer as from 1 January 2015, when the factory’s personnel is taken over as old employees by the new company to be established. The business transaction covers the operations in the Vaasa factory including the related fixed assets and inventories, contracts and customer base as well as the personnel. The net sales price is approximately EUR 1.1 million and the final sales price will be determined on 31 December 2014. It has been estimated that the transaction does not have any essential influence on the result of Incap Group for 2014.

The deal enables Incap’s strategic focus on the contract manufacturing of electronics with factories in Kuressaare, Estonia and in Bangalore, India. Both factories will manufacture electronics and related box-build products. The parent company’s domicile stays in Finland. The cash component of the sale will be used in financing the growth of the electronics production.

Ville Vuori, CEO of Incap Group: “The focus on electronics manufacturing enhances the core of our business and enables the cost-efficiency in operations. Our operations now consist of two state-of-the-art electronics factories that will be operating under the same enterprise resource planning system (ERP). Our customer promise can be summed up in Quality, Delivery accuracy and Cost efficiency.

After the deal a new strong player in mechanics manufacturing is emerging in the Vaasa region, and it is ensuring the continuity of services to the customers of our Vaasa factory. I am pleased to see that the business will be handed over to competent key persons, who are committed to develop the operations also in the future.

We will now shift our focus on strong organic growth. We are seeking for a remarkable market share especially in India, where our business already is on a solid growth track. After having studied the market in India we have set to our target to be revenue-wise one of the biggest enterprises in our segment by the year 2017. Our reformed organisation is committed to growth not only in India but also in Europe and of course in our home market in Finland.”

INCAP CORPORATION

Ville Vuori
President and CEO

Further information:
Ville Vuori, President and CEO, tel. +358 400 369 438
Kirsti Parvi, CFO, tel. +358 50 517 4569

DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.incap.fi

INCAP IN BRIEF
Incap Corporation is an international contract manufacturer whose comprehensive services cover the entire life-cycle of electromechanical products from design and sourcing to actual manufacture and further to maintenance services. Incap’s customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China. The Group’s revenue in 2013 amounted to approximately EUR 36.8 million, and the company currently employs approximately 500 people. Incap’s share has been listed on the NASDAQ OMX Helsinki Ltd since 1997. Additional information: www.incap.fi.