(Luvata: London, UK. 22 April 2009). Following a significant period of negotiation, Sam Dong Ltd and Luvata Oy have signed an agreement for the sale of Luvata’s Rolled Products facility in Delaware, Ohio.
Luvata is one of the world’s largest and most diverse metals-and-manufacturing groups. Sam Dong is an established customer of the Delaware Rolled Product facility and one of the world’s leading manufacturers of magnet wire for the electrical coil winding industry.
The agreement will see Sam Dong taking ownership of the facility, attaining full vertical integration of its production in North America. For Luvata the agreement provides an opportunity to realise the value of the investment it has built in the plant and enables the group to focus its attention on its larger rolled products manufacturing facilities. The announcement does not affect Luvata’s Formed Products facility, also in Delaware.
Speaking of the agreement, Ee Joo, Lee, President of Sam Dong commented: “This acquisition is a major upstream integration for Sam Dong, giving us a full capability from casting and rolling to finished products in N. America. We have a long-standing relationship with Luvata and a good working relationship with the facility.”
The plant will continue to produce the rod which becomes Sam Dong’s electrical wire for transformers, motors and generators and its other products as they have for many years. Sam Dong will also continue as a supplier to Luvata’s Formed Products business in Delaware, Ohio.
This announcement follows Luvata’s programme of major acquisitions and restructuring, which began in 2005. The agreement is positive news for Luvata, for Sam Dong and for the facility itself.
John Peter Leesi, CEO and President of Luvata Group added: “This is good news for everyone. For Luvata, this allows us to focus our attention on our larger rolled products facilities and other core businesses. As a part of a vertically integrated business within Sam Dong, the Delaware facility will thrive. Luvata will maintain a strong partnership with Sam Dong through the rest of our organisation – especially our Formed Products unit in Delaware.”
The casting and rolling facility employs just under 100 people and has a capacity of around 30,000 tonnes per year.
Luvata is a major international supplier of solutions, services, components and materials for manufacturing and construction. Luvata’s solutions are used in industries such as power generation, renewable energy, telecommunications, architecture, automotive, medicine, air-conditioning, refrigeration, and a wide range of consumer products. The company’s continued success is attributed to its longevity, its technological excellence and strategy of integrating with its customers’ businesses. Employing 8,000 staff in 18 countries, Luvata works in partnership with customers such as Siemens, Toyota, CERN, Shaaz, and DWD International.
About Sam Dong
Sam Dong is one of the world's leading manufacturer's of Magnet Wire and specializes in engineered products for the electrical coil winding industry. Founded in South Korea in 1977, the company delivers products to major electrical manufacturers throughout the world. Customers include ABB, General Electric, Hitachi, Hyundai, Mitsubishi, Siemens. Sam Dong has several state-of-the art facilities in South Korea and in 2008 made its first manufacturing investment in America as part of a global growth strategy.