Tognum Subsidiary Rotorion and IFA Completed Examination Process
Tognum and IFA Group, Haldensleben, Germany, have completed the mutual examination of a possible collaboration in the propeller shaft business, first announced in February 2009. The cooperation is subject to examinations by the German competition authority and the banks. The intention is to set up a new company as a subsidiary of the holding company, IFA Maschinenbau Verwaltungsgesellschaft GmbH. Tognum would combine its Rotorion propeller shaft unit with the new entity and relocate the activity from Friedrichshafen at the beginning of next year. Tognum would receive 25 % of the share in the holding company and, after five years, release its share and withdraw completely from the propeller shaft business.
“A combination of the propeller shaft operations of Tognum and IFA will be a consistent step for the entire Tognum Group“, said Christof von Branconi, member of the Tognum executive board with responsibility for the business unit “Onsite Energy & Components“. “We are specialists in propulsion and power systems for off-highway applications, and in future – as we have frequently announced – we intend to concentrate fully on this core business.“ The benefits of a combination of the two propeller shaft units would be an improved market and cost position, in addition to achieving synergies in the research and development of propeller shafts.
Rotorion employees at the Friedrichshafen location would be given the option of moving to Haldensleben or remaining within the Tognum Group. The Rotorion location in Charleston, USA would be retained and become part of the cooperation.
For more information: www.tognum.com