Reunert pays R25m for Aussie company
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Trade and Industry Correspondent
ELECTRONICS and electrical engineering group Reunert has gained a foothold in the Australian market, purchasing the Australian company Heinemann Electric for R25m.
Reunert CE Gerrit Pretorius said yesterday the acquisition would further strengthen the company`s electrical engineering division.
The division, which contributes about 27% of the group`s profit, comprises telecommunications cable manufacturer ATC, power cable manufacturer African Cables and Circuit Breaker Industries.
Heinemann will be incorporated into Circuit Breaker Industries.
`Over the past few years Circuit Breaker Industries has grown its export markets, while broadening its product base locally. Exports are 25% of turnover. Sales in Europe and the US have almost doubled the past year ,` Pretorius said.
He was optimistic that expansion into the Australian market would boost international sales.
Heinemann Electric`s business comprises import , manufacture and distribution of electrical transformers and switchgear as well as the design and manufacture of electrical switchboards and the supply of parts and accessories to electrical contractors.
The firm was established in Australia in 1959 by the late Art Jorgensen, 10 years after starting Heinemann Electric (now Circuit Breaker Industries) in SA.
Helmuth Fischer, MD of Circuit Breaker Industries, said his company would use Heinemann Electric to penetrate the Australian market.
Reunert also said that Richard Ross of Circuit Breaker Industries had been appointed general manager of Heinemann Electric.
The change of ownership becomes effective on July 1 .
Jun 22 2004 07:04:56:000AM Siseko Njobeni Business Day 1st Edition
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