Ralf Schneider GmbH is bringing its three ancillary equipment businesses Motan GmbH, Colortronic GmbH and Colortronic Systems AG into a new single entity under the Motan-Colortronic name.
Konstanz-based Ralf Schneider has not set a specific timetable for the merger, as progress will be defined by its specific representations in individual markets, according to the company's strategic marketing head, Christian Soretz.
Where we have wholly owned subsidiaries, we start from January now, he said. In other areas where we have agents, we will have to see. We have contracts [with our agents] and we will follow these.
Colortronic North America Inc., which was acquired by ACS Group of Schaumburg, Ill., in 2003, is not affected by the deal. Colortronic North America is based in Flint, Mich.
The merger into Motan-Colortronic is already under way in France, Germany, Italy and Switzerland, for example, where all three divisions operate from wholly owned businesses. However, in the U.S., where only the Motan business is wholly owned, there will be no immediate change.
Soretz said there will be no job losses or facility closures as a result of the merger decision. He also said the merger is not a response to tighter market conditions.
We have seen some downturn but we have been able to manage that. We do not have that in mind when we talk about the merger, he said.
The basic idea is that we will have a platform from which to expand our business. Customers today are looking for partners that are able to provide a wider range of equipment.
Ralf Schneider group has owned Izny, Germany-based Motan GmbH; Friedrichsdorf, Germany-based Colortonic GmbH; and Colortronic Systems AG of Hunzenschwil, Switzerland, since 2006.
Initially the group strategy was to run the Motan and Colortronic businesses, which had quite different product technologies, as independent operations competing in the market. However, Soretz said in an interview, merging the two divisions was always part of the long-term aim.
This is not a change in strategy; it is the beginning of the second stage. It was logical to keep the organizations as we had done at first. But in the meantime, we have learned how we can improve our market success, he said.
Ralf Schneider GmbH posted sales of 109 million euros ($156.4 million) and operating profit of 8.8 million euros ($12.6 million) for the year ended Dec. 31, 2008, according to public records filed officially in Germany's.
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