HEILIGENHAUS, Germany, With new owners, new management and a sound restructuring concept, Kiekert, a leading supplier of locking systems to the automotive industry, is on track to a more stable future. Kiekert group's management board announced today that the company was boosting equity capital by EUR 20 million.
With the capital increase, Kiekert group's investors have given the 2007/2008 business plan the green light, and thus the basis for the company's continued reorganisation. A multi-year plan, which includes a long-term global growth strategy, is now undergoing final preparations.
It's been around one year since the investor consortium of global financial services firm Morgan Stanley and investment companies Bluebay Asset Management and Silver Point Capital acquired Kiekert from Permira, the previous owner. The company has already seen some very positive developments in the first 12 months following the change in ownership. The capital hike now paves the way for Kiekert's continuing recovery. After long, the company is expected to surpass the EUR 500 million revenue mark again this year.
"Through the sustainable restructuring of operations, we've secured a commercially viable business model for the Kiekert group. With the capital increase, our investors have provided us with the means to accomplish a turnaround," explained Kiekert CEO Dr. Karl Krause. "The 2007/2008 business plan is finalised, and we expect to have the business plan for the next five years completed by the end of the year. We're looking to progress the company from the present stabilisation phase to one of global expansion and growth. From now on, we're only looking ahead. And as we proceed down the road to recovery and profitability, I want to thank everyone involved. Our owners, customers, staff and labour representatives have all stood solidly behind us, giving us the room we need to manoeuvre for the good of the company."
Some of the numerous restructuring initiatives begun this year have already reached a successful conclusion, including the consolidation of production sites in England and the United States. Almost 15 per cent labour cost savings were achieved in Germany in 2007 on a voluntary basis. Kiekert is currently aiming at similar targets for improving fixed costs around the world.
Sites in Mexico and the Czech Republic have reaped the benefits of restructuring in the form of investments into expanding production and development facilities. What's more, Kiekert has even established an affiliate in Shanghai, from where the company is coordinating its regional supply and engineering activities. Shanghai is also to be the hub for future regional growth activities in Asia.
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