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Siemens VAI to acquire Morgan Construction

Siemens
January 15, 2008

Siemens’ market position in rolling mill technology stronger than ever…  

Siemens VAI, a division of the Siemens Group Industrial Solutions and Services (I&S), headquartered in Linz, Austria is set to acquire Massachusetts-based Morgan Construction. Morgan Construction is a world leader in rolling mill technology; it specializes in design and construction of high-quality bar and rod mills for steel and nonferrous metals. Morgan has designed and installed more than 450 rod, bar, and billet mills in over 40 countries worldwide; it has production sites and offices in the U.S.A., China, India, the United Kingdom, Brazil and employs 1,100 people. In 2006 Morgan reported sales in excess of 180 mil. USD.  

Siemens VAI and Morgan Construction seem like a perfect match. By combining Morgan’s competence in rolling mill equipment and Siemens’ know-how in industrial automation, the Austrian company will significantly strengthen its position and brand in the flat product rolling mill technologies. On the other hand, Siemens will inject much-needed capital into Morgan Construction and protect it from eventual hostile takeovers inevitable in this era of consolidation in the metals industry.  

The transaction is conditional upon the approval of the relevant authorities. All parties have agreed not to disclose the purchase price. The acquisition is expected to be finalized at the end of the first quarter of 2008. 

Siemens VAI is one of the world's leading engineering and plant-building companies for the iron and steel industry, for the flat-rolling sector of the aluminum industry as well as for open-cast mining. It was created as the result of the integration of Voest-Alpine Industrieanlagenbau (Linz/Austria) and the metals and mining activities formerly conducted by I&S IP (Industrial Plants) and I&S IS (Industrial Services) in 2005.

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