STOCKHOLM, Sweden, April 7, 2003 (PRIMEZONE) -- Boliden's (TSE:BLS) (Other OTC:BDNNF) British subsidiary, the brass manufacturer Boliden MKM Limited, and Cerro Extruded Metals Limited have signed a letter of intent for the acquisition by Boliden of the business of Cerro Extruded Metals Limited from the Marmon Group Limited. The acquisition will allow Boliden to merge both companies and create a stronger brass producer in the U.K. with improved productivity and profitability.
Boliden and Cerro are long established companies in the European brass market which in recent years has been negatively affected by low demand and increased competition from the European brass industry and imports of finished components from the Far East.
"The acquisition is in line with Boliden's plan to take an active part in the ongoing restructuring of the European brass business. With this transaction we will achieve industrial synergies that will create a stronger British brass company with increased profitability," said Jan Johansson, Boliden's President and CEO.
The transaction is in the initial stages and is subject to the approval of the British and German competition authorities.
For further information, please contact: Jan Johansson, Boliden's CEO tel: +46 8 610 16 02, +46 70 555 02 02 Bengt Olof Johansson, Vice President Business Area Fabrication tel: +46 70 217 69 89
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The following files are available for download:
http://www.waymaker.net/bitonline/2003/04/07/20030407BIT00440/wkr0001.doc
http://www.waymaker.net/bitonline/2003/04/07/20030407BIT00440/wkr0002.pdf