Siemens to Acquire Morgan Construction Company

LINZ, Austria, Jan. 2  /PRNewswire-FirstCall/ -- The Siemens Division Industrial Solutions (IS) strengthens its position in metals technologies with the acquisition of Morgan Construction Co., Worcester, MA, U.S.A., a designer and producer of high-quality rolling-mill products and services for the metals industry worldwide. In 2006, Morgan reported sales of 180 Mio USD and employed around 1,100 people in the U.S.A., China, India, the United Kingdom, and in Brazil. Siemens intends to take over 100% of the Morgan Construction shares. All parties have agreed not to disclose the purchase price. The transaction is conditional upon the approval of the relevant authorities.

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Morgan Construction Company is acknowledged as a leader in rolling mill technology. Founded in 1888, Morgan Construction Company is worldwide supplier of wire rod rolling-mill equipment for the long-products industry today. Morgan has designed and installed more than 450 rod, bar, and billet mills in over 40 countries worldwide, setting benchmarks as a designer, manufacturer and service provider of high-speed rod, bar, combination mills and handling equipment for the steel and non-ferrous industries. The technology includes the patented Reducing/Sizing Mill, which enables products to be rolled faster, with closer tolerances and at lower costs.

"With the acquisition of Morgan Construction we combine its competence in the sector of rolling mill equipment with our know-how in industrial automation," said Dr. Richard Pfeiffer, CEO Siemens VAI Metal Technologies. "This step underscores our position as a trendsetter in rolling and processing solutions. We will improve our capabilities to offer integrated solutions by increasing the degree of standardization."

Philip R. Morgan, President and CEO of Morgan, said: "The fit between our two companies is remarkably good. Morgan Construction is the acknowledged leader in the design and manufacture of wire rod mills and Siemens Metals Technologies has a very strong bar mill group. There are true synergies between the two companies, which strengthen the position of both in the flat product rolling mill area." With Siemens, Morgan has access to the Siemens' resources worldwide, which improves Morgan's global market presence. "This will assure long-term stability for our manufacturing facilities and employees," Morgan said.

Morgan Construction will be a group company of Siemens Industrial Solutions and Services under the responsibility of the IS Business Unit VAI Metals Technologies, headquartered in Linz/Austria.

Siemens VAI Metals Technologies (MT) is one of the world's leading engineering and plant-building companies for the iron and steel industry as well as for the flat-rolling sector of the aluminum industry and for open-cast mining. MT, which was created from the integration of Voest-Alpine Industrieanlagenbau, Linz/Austria, plus the electrical engineering product business and automation solutions of Siemens, provides a comprehensive range of supplies and services for all related technological processes and integrated automation solutions for the entire life-cycle of metallurgical plants.

For more information, please visit http://www.morganco.com/html/home_page/home.html

This document contains forward-looking statements and information -- that is, statements related to future, not past, events. These statements may be identified by words as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens' control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from: changes in general economic and business conditions (including margin developments in major business areas); the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; changes in currency exchange rates and interest rates; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens worldwide; changes in business strategy; the outcome of investigations and legal proceedings as well as various other factors. More detailed information about certain of these factors is contained in Siemens' filings with the SEC, which are available on the Siemens website, http://www.siemens.com/ and on the SEC's website, http://www.sec.gov/. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated. 



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DATASOURCE: Siemens Division Industrial Solutions



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