European mergers roll on

Modern Machine Shop, March, 1994 by Michael Page

Although much of the machine tool company rationalization news has focused on the metalcutting theme, the trend is becoming apparent among the metalforming machine builders as well. It's interesting to note, once-familiar metalcutting names appearing on the scene under new company titles. Remember DeVlieg and Wadkin?

Simultaneous engineering, concurrent engineering--or whatever one might call suppliers getting together with the original equipment manufacturers (OEM) at the design and tooling stage--is what modern subcontracting is all about in Europe.

Anticipating growth in simultaneous engineering, power press builder Mueller-Weingarten in southern Germany, tool and diemaker, Grau GmbH & Co., in Schwaebische Gruend, and Dutch diemaker, Polynorm NV have formed a joint venture company. The JV will manage large international contracts, and expects a turnover in excess of $60 million.

The Canadians have acquired the eastern German power press builder, Umform-technik Erfurt. Magna Inc. of Ontario plans to invest $200 million in Erfurt's Thuringen operation between now and 1998. Erfurt was the former German Democratic Republic's largest power press building group. After the melting of the "Iron Curtain," Erfurt acquired the power press building assets of Krupp Pressen, but like most former GDR companies, turnover has plunged following the disappearance of the former USSR markets. In July 1990. Erfurt turnover was around $210 million. Their turnover for 1993 is only expected to be near $90 million. Magna expects to keep 916 employees at Erfurt. Other companies are showing interest in Erfurt including the Russian car builder AMOZII and TMP in Voronesh and Bliss in Australia.

Shin Nippon Koki, of Japan, is watching European trends. They may be thinking of transferring production there. SNK has formed a JV with the Walter metal forming group in Goeppingen, Germany. YMP (Yamaguchi Management Planning)-Europe Technology GmbH plans to transfer large tool and die technology to Europe. YMP-Europe is installing a large SNK tool and die machining system. The Bremer Vulkan Group continues merging metalcutting companies including the new Doerries-Scharmann Group, (following the closure of Schiess); and has acquired mold and die milling machine tool maker Droop and Rein of Bielefeld. Droop and Rein has been developing high-speed finish milling dies. They have systems up and turning at Volkswagen and Daimler-Benz. Apparently, for die sets producing car doors and roofs, the die sets leave the CNC millers and go straight into the presses.

Milling spindle speeds in use are 25 to 26,000 rpm taking a light finishing skim off hardened die steel profiles. But high speed, combined with high metal removal rates, is more difficult to accomplish.

You would think company seekers would take time off over Christmas, but not Doerries-Scharmann. The company added on the Wanderer milling machine tool builder. The Koerber Group, which owns Hauni-Blohm, has taken over the four "Grinding Club" (Schleifring) machine builders in eastern Germany from Treuhand Anstalt. The four are BWF Berlin, Mikrosa (Leipzig), Schleifmaschinewerk Chemnitz and Glauchau.

The Rothenberger Group has acquired the mill-turning center from the Austrian Voest Alpine Group Linz. These centers will now be built under the new company name Maschinenfabrik (Machine Tool Factory) Linz. Rothenberger has also allowed the liquidation of the New Magdeburger company in Sinshelm, Germany. They recently acquired the Magdeburg facility from the Treuhand Anstalt. Both Magdeburg companies make CNC lathes and front-loading chuckers.

It is understood that the Steinel CNC machining center and system builder in Germany, owned by Voest Alpine, would welcome interested buyers. While the Ingersoll Group in Germany has closed the Bohle CNC large machining center building facility in Beilefeld. The Bohle product has be absorbed into the Waldrich Blegen operation.

Zodiac Machine Tools in Norwich, UK, recently completed its first new DeVlieg machining center, having acquired assets and production inventory from the former UK operation. Wenlock Machine Tools, based in Leicester, UK, acquired the assets and production inventory of Wadkin in mid-1991. Its first new machine emerged in 1992, then in late 1993, Wenlock announced its intention to expand the former Wadkin product range. Some of the machining centers are being built for Wenlock by Eumach in Taiwan. Both companies report growing inquiry levels.