Positions Carbone Lorraine Group as a Leader in the Chinese Fuse and Fusegear Market
Newburyport, Mass., July 8, 2008 - Ferraz Shawmut, a global leader in the field of circuit protection and subsidiary of the Carbone Lorraine Group, announces the acquisition of a majority shareholding in the Chinese company, Zhejiang Mingrong Electrical Protection (MEP). This joint venture continues Carbone Lorraine's rapid expansion in Asia, and it positions Ferraz Shawmut to become a platform for new product development for Asian markets.
A privately-held company with a performing and dynamic management team, MEP is a leader in the fuse and fusegear market, boasting the most extensive product range of all Chinese market participants. The company is based in Zhejiang province, the cradle of the Chinese electrical industry's development, and it posted sales of around 10 million in 2007. The company has enjoyed brisk growth in recent years.
Electrification needs in China and strong demand for increasingly sophisticated equipment for power generation, distribution and control applications has made China an attractive market. Pooling the highly complementary product ranges of Ferraz Shawmut and MEP, together with stronger commercial positions at distributors and OEMs, is expected to drive a substantial sales increase, both in China and in export markets.
MEP's high degree of vertical integration-plastic injection-molding, metal components and tooling-also represents a major strength that should accelerate the pace at which Carbone Lorraine's Electrical Protection division develops sourcing in China.
"MEP is the leading, and most profitable, power fuse and fusegear company in China, offering a comprehensive range of fuses from a sophisticated and vertically integrated manufacturing facility," said Ken Hooper, senior vice president of sales and marketing at Ferraz Shawmut. "This strategic alliance offers us an exciting new global growth dimension."
The anticipated production and revenue synergies are predicted to drive sales growth at double the pace of that in the Chinese market at large. From a financial standpoint, the majority stake in this company that already enjoys high profitability is expected to immediately enhance earnings for Carbone Lorraine.
MEP was established in 1981, near Wenzhou, and has been a privately held company until now. MEP manufactures and sells, under the brand name Miro, a full line of IEC products and brand labeled products. The company has traditionally exported about 45 percent of production to Spain, the United Kingdom, Russia, Southeast Asia, Italy and the United States.
About Ferraz Shawmut Ferraz Shawmut has been a leader in circuit protection for industry and the electrical market for more than 100 years. With a complete line of current-limiting fuses and accessories, Ferraz Shawmut prides itself on delivering innovative, problem-solving products like the SmartSpot® open-fuse indicator, Amp-Trap 2000® fuses, ULTRASAFE(TM) fuse holders, Protistor® semiconductor fuses and Select-A-Fuse® software. Two of the company's latest innovations are its new line of Amp-Trap® High-Speed Class J (HSJ) fuses, engineered specifically for the protection of today's sensitive electronic motor controllers, and the industry's first line of Finger-Safe Power Distribution Blocks (FSPDBs), delivering the ultimate in safety and ease-of-use when making power connections in electrical panels. Ferraz Shawmut, Inc. is a subsidiary of the Carbone Lorraine Group. For more information, contact the company by phone at (978) 462-6662 or visit http://us.ferrazshawmut.com.
Ferraz Shawmut 374 Merrimac St. Newburyport, MA 01950
CONTACT: Stephen Colvin (978) 465-4870
AGENCY: Eric Mower and Associates 500 Plum St. Syracuse, NY 13204
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