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FKI joins the Skoda-owners` club

01 April, 2001

FKI joins the Skoda-owners` club

FKI is buying the business and certain assets of Skoda Electrical Machines (SEM), the Czech manufacturer of large electric motors and turbogenerators. FKI is paying around £15.2m in cash for the business, based in Plzen, which employs approximately 840 people.

FKI`s main interest in SEM is to increase its output of turbogenerators. Skoda has been operating as a sub-contractor to FKI`s Brush Electrical Machines business for the past year and the acquisition will boost the capacity for Brush-designed generators by more than 30%. It will also allow FKI to raise the size of its largest tuurbogenerators from 160MW to 1,000MW.

The deal does not include Skoda`s traction motor business and, although the plant has facilities to produce large salient-pole motors, HV induction motors and DC machines, Reg Gott, managing director of FKI`s rotating machines division, says that "we are not planning to develop that side of the business". FKI already has the capacity to produce large motors at its Marelli Motori plant in Italy and LSE operation in Norwich.

Gott says that FKI will offer relacement and overhaul services for existing Skoda motor users.

Brush has been enjoying considerable success in the turbogenerator market. It has recently won orders worth £120m for its two-pole machines and claims to be the world`s largest independent turbogenerator manufacturer.

FKI chief executive Bob Beeston predicts that this level of demand will continue. "As well as additional capacity, SEM will help extend our product portfolio and enable us to enter new markets in Eastern Europe," he says.




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