PRESS RELEASE Corporate

Tognum subsidiary Rotorion and IFA have completed examination process

Posted on August 11, 2009

The specialist for propulsion and power solutions Tognum AG and the IFA Group, Haldensleben, have completed the mutual examination of a possible collaboration in the propeller shaft business that was announced on 26 February as scheduled. Subject to the results of the examinations that will be carried out throughout the second half of the year by the German competition authority and the banks involved, the intention is to set up a new company as a subsidiary of the holding company, IFA Maschinenbau Verwaltungsgesellschaft GmbH.

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Der Antriebssystem- und Energieanlagen-Spezialist Tognum AG und die IFA-Gruppe, Haldensleben, haben die am 26. Februar angekündigte wechselseitige Prüfung einer möglichen Zusammenarbeit im Gelenkwellengeschäft im geplanten Zeitraum abgeschlossen. The specialist for propulsion and power solutions Tognum AG and the IFA Group, Haldensleben, have completed the mutual examination of a possible collaboration in the propeller shaft business that was announced on 26 February as scheduled. JPG, 1 MB

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  • Examination by German competition authority and banks in second half of 2009
  • New company planned with locations in Haldensleben/Germany and Charleston/USA
  • Tognum intends to withdraw completely from propeller shaft business in five years time

Friedrichshafen/Haldensleben, 11 August 2009. The specialist for propulsion and power solutions Tognum AG and the IFA Group, Haldensleben, have completed the mutual examination of a possible collaboration in the propeller shaft business that was announced on 26 February as scheduled. Subject to the results of the examinations that will be carried out throughout the second half of the year by the German competition authority and the banks involved, the intention is to set up a new company as a subsidiary of the holding company, IFA Maschinenbau Verwaltungsgesellschaft GmbH. Tognum would combine the Rotorion propeller shaft unit with the corresponding business operations of IFA and thereby receive 25 per cent of the share in the holding company, IFA Maschinenbau Verwaltungsgesellschaft GmbH, too. After five years, Tognum would then 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.

As announced in February, Rotorion employees at the Friedrichshafen location would be given the option of moving to Haldensleben or remaining within the Tognum Group. After the final signing of the contract, it is planned to start the relocation of the propeller shaft business from Friedrichshafen at the beginning of next year. The Rotorion location in Charleston/USA would be retained and become part of the cooperation.

Julia Höchel Spokeswoman Business and Financial Media
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