Ahlstrom-Munksjö to divest its glass fiber reinforcement business

AHLSTROM-MUNKSJÖ OYJ, PRESS RELEASE NOVEMBER 21, 2019 at 13:15 EET

Ahlstrom-Munksjö has agreed to sell its glass fiber reinforcement business in Mikkeli, Finland, to Vitrulan Composites Oy, a fully owned subsidiary of Vitrulan Group and part of the family-owned industrial holding ADCURAM Group.

Ahlstrom-Munksjö’s Mikkeli plant produces glass and carbon based reinforcement fabrics. Main product offering consist of specialty glass fiber reinforcements for wind energy applications as well as for other end-uses including marine and transportation applications as currently manufactured in Mikkeli. At the end of 2018 the plant employed about 100 people. Net sales were approximately EUR 30 million and the divestment will not have a material impact on Group’s comparable EBITDA. The debt free purchase price is EUR 6.5 million. The transaction is expected to be completed during the fourth quarter of 2019 and is subject to customary closing terms. The Mikkeli plant is part of Ahlstrom-Munksjö’s Filtration and Performance business area.

“We regularly assesses what is the most value creating structure for our businesses. Mikkeli’s woven technology and customer base differ from the rest of the group and the plant’s conversion margin is lower. The business provides limited synergies to Ahlstrom-Munksjö’s portfolio. Vitrulan Group is a strategic and industrial player, and a good home for which our technology and skillful personnel is complementary and provide growth opportunities,” says President and CEO Hans Sohlström.

Ahlstrom-Munksjö continues to produce glass fiber tissue at its plants in Karhula, Finland, and Tver, Russia. The company will defend and grow its leadership position in glass fiber tissue, where it has unique technical expertise and close customer relationships. In flooring applications, the company is a global leader and intends to expand its portfolio further.

Ahlstrom-Munksjö’s Mikkeli glass fiber reinforcement business will bring significant growth to Vitrulan Group which produces highly resilient glass fiber-based woven materials. Vitrulan has approximately 400 employees and generates net sales of approximately EUR 60 million. Its woven materials are used in public and private buildings, reinforcing and backing fabrics, laminates and special products.

ADCURAM comprises six subsidiaries with a combined sales of more than EUR 400 million and around 2,500 employees globally. It actively develops its subsidiaries with the aim of significant growth.

“We are excited about expanding our glass fiber reinforcement business and welcome our new colleagues to the Vitrulan family. Together, we will set the course for the next steps,” says Ralf Barthmann, CEO of the Vitrulan Group.

Additional information

Pekka Helynranta, Vice President, Building & Wind, +358 10 888 2606
Johan Lindh, Vice President, Communications and Investor Relations, + 358 10 888 4994
Juho Erkheikki, Investor Relations Manager, +358 10 888 4731

Ahlstrom-Munksjö in brief

Ahlstrom-Munksjö is a global leader in fiber-based materials, supplying innovative and sustainable solutions to its customers. Our mission is to expand the role of fiber-based solutions for sustainable everyday life. Our offering include filter materials, release liners, food and beverage processing materials, decor papers, abrasive and tape backings, electrotechnical paper, glass fiber materials, medical fiber materials and solutions for diagnostics as well as a range of specialty papers for industrial and consumer end-uses. Our annual net sales is about EUR 3 billion and we employ some 8,000 people. The Ahlstrom-Munksjö share is listed on the Nasdaq Helsinki and Stockholm.

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