This acquisition significantly expands Sulzer Metco's coating services business. The two acquired companies specialize in coating services for customers in the automotive, paper, machine-tool and other industries. The terms of the transaction are not being disclosed. 

Euroflamm GmbH provides thermal surface coating services mainly for automobile manufacturers. The company has 150 employees at plants in Bremen, Horb am Neckar and Weissenborn (all in Germany) as well as in Naples, Italy. Annual sales are around CHF 30 million (DM 40 million).

Metaplas Ionon GmbH has decades of experience in PVD (Physical Vapor Deposition) coating technology and plasma-based heat treatment. In addition to customized surface coating services the company also markets complete surface coating systems. Annual sales of Metaplas Ionon GmbH total about CHF 40 million (DM 50 million) with 145 employees in Bergisch Gladbach, Salzgitter and Hochenlockstedt (all in Germany). 

Sulzer Metco President Eduard Rikli says: "The acquisition of these two companies represents a considerable expansion of our surface coating business. Furthermore, the addition of Metaplas Ionon GmbH will strengthen our position in the growth market of PVD technology".

Sulzer CEO Fred Kindle remarks: "After having gone through the strategic focusing of the Sulzer Corporation we are now significantly expanding our core businesses. This acquisition represents a further step in building up the new Sulzer Corporation".

According to Prof. Dr.-Ing. Klaus G. Lederer, CEO Babcock Borsig AG, "Euroflamm and Metaplas Ionon are two outstanding companies, ideally complementing the Sulzer Metco portfolio. We are divesting our surface coating technology business because it no longer belongs to our strategic core activities".

Sulzer Metco is a global market leader in thermal surface coating materials, components, systems and related services. Sulzer Metco development and production facilities are located in Wohlen (CH), Westbury, NY and Troy, MI (USA), Lomm (NL), Hattersheim and Salzgitter (DE), Tokyo (JP) and Singapore. With 1215 employees, Sulzer Metco sales for the first half-year 2001 totalled CHF 208 million (annual sales for 2000: CHF 338 million not including Eldim).

The core businesses of the Sulzer Corporation are Sulzer Metco, Sulzer Turbomachinery Services, Sulzer Pumps and Sulzer Chemtech, as well as the Sulzer Hexis venture division.

Babcock Borsig AG is an international technology corporation, mainly active in the field of energy technology and shipbuilding. The company also has outstanding know-how in certain machine-building areas. The MDax-listed public company is headquartered in Oberhausen and has around 30,000 employees. Total sales for the 1999/00 business year were about DM 12 billion.