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Filtration Industry Analyst April 1999

KOCH MEMBRANE WINS

CONTROL OF ABCOR JAPAN

Koch Membrane Systems Inc has acquired a majority interest in Abcor Japan Company Ltd, the mem- brane systems engineering company.

Abcor Japan supplies com- plete membrane systems as well as replacement mem- branes and has been associated with Koch Membrane Systems as a distribution partner lor many years.

"This investment is key to the company's mission to meet the needs of our global cus- tomers through local distribu- tion channels," said David Perry, president of Koch Mem- brane Systems Inc.

SEMICONDUCTOR EXPOSURE

DRAGS FAIREY DOWN

Reduced semiconductor de- mand, the dramatic price falls in semiconductor devices and a number of high profile plant closures combined to hit both sales and profits at Fairey Group.

Sales in 1998 were £263.7 million compared with £32I).7 million for 1997. While head- line profit before tax increased from £52.2 million to £67.2 million, the underlying perfor mance was a reduction in PBT from £51.3 million to £30.5 minion.

Filtration, adjusted for the expected decline in the nuclear canister business, fell slightly' from the record 1997 perlbr- mance. Reduced demand for ceramic cores in civil aero engines and for hydraulic fil- ters were insufficiently offset by improvements at Micrnfil-

trex from increased penetra- tion of the US market.

There are indications of

more robust end-user markets

16

for semiconductors bul it is likely to be towards the latter part of 1999 belore this works its way throngh to increased demand for products. Short term expectatkms are cautious, but Fairey believes that its companies are well positioned for growth in more favourable circumstances.

TRION PURSUES STRATEGIC

ALTERNATIVES Trion Inc's board of directors has unanimously decided to pursue strategic alternatives, including the possible sale of the company.

The board says it was encouraged by the company's sales perlbrmance in ttle fourth quarter of 1998 and by the oper- ational improvements made during 1998. These lx~.:o 1actors strongly contributed to the board's optimistic outlook lot 1999.

Trion has retained Harris Williams & Co of Richmond, Virginia to advise the company and to coordinate all contact concerning these alternatives.

Steven I, Schneider, piesi- dent and chief executive offi- cer, s a i d h e w a s v e r y e u c o u r -

aged by recent strong sales and by operational improvements. He believes the added empha- sis on comlnercial and indus- trial equipment should help to further strengthen operating results. "Our 1999 outlook is very positive and our financial position continues to be strong. We recognise that our industry has been consolidating and will continue to consolidate, and that there may be value added to Trion through an alliance."

THAMES WATER BUYS

MEMTECH Thames Water has acquired the Swansea, UK-based fil- tration company Memtech (UK) Ltd.

The newly-acquired com- pany will be combined with Thames Water's Hampshire- based PCI Membranes, creat- ing one of Europe's largest membrane systems companies.

Memtech (UK) Limited was established in 1982 and specialises in custonl built crossflow membrane systems for a wide range of industries including food, beverage, dairy, biotechnology and pharmaceut ical

PCI Membranes designs and manufactures membrane systems liar municipal and industrial customers world- wide. It has offices in Scot- land, France and the USA, and is a division of Thames Water Products Ltd.

Carl Millington. managing director of Whitchurch-based PCI Membranes, said the buy fitted their strategy for growth, adding that it was great news for PCI Membranes, as it has recently celebrated 30 years in business.

CECO SECURES ADDITIONAL ACQUISITION

FUNDING Ceco Environmental Corp's new relationship with PNC Bank includes an increase in the company's Line of Credit from US$2 million to US$5 million, a US$625 (100 term loan and a US$787 000 mort- gage loan.

In addition. PNC Bank will help Ceco to consummate futnre acquisitions through a committed US$2 million Ac- quisition Line of Credit. PNC Bank also says it is willing to consider providing undis- closed financing for larger acquisitions on terms satisfac- tory to the bank.

Phillip DeZwirek, chief executive officer and president of Ceco Environmental, said Ceco was actively pursuing a major acquisition to fully utilise these new financing arrangements.

02207 Printed b.~ Maylield Press, Oxon. [ k .