Salzgitter selling Desma to German-French industrial group

Salzgitter, Germany – Salzgitter AG has agreed to sell rubber injection moulding machinery manufacturer Klockner Desma Elastomertechnik GmbH (Desma) to German-French industrial group Name & Mawi Partners SAS (NMP).

The transaction is expected to close in autumn, German steel and technology group Salzgitter announced 3 Aug, without disclosing financial terms of the deal.

According to the group's statement, the planned divestment of Desma follows its 'best owner' principle and forms part an ongoing portfolio optimisation strategy.

"The decision to sell the company is the result of a cautious strategic review and is part of our consistent portfolio management," explained Salzgitter CEO Gunnar Groebler.

Desma, he added, will find "ideal conditions for its further development" under NMP, providing "a clear vision for the future" for both the company and its employees.

For NMP, the acquisition supports plans to expand manufacturing capacity and strengthen its international sales network.

“Our strategic focus on quality and customer service has enabled us to achieve steady growth over the past ten years,” said NMP CEO Narith Meksavanh.

The acquisition of Desma, said Meksavanh, will help address the group's industrial challenges by leveraging the company’s manufacturing capabilities.

"Our joint international sales networks will enable us to continue strengthening our market position, particularly in our growth-strong markets – the US, India and China," the NMP CEO added.

Based in Fridingen, Germany, Desma employs more than 500 people worldwide and has been operational since 1965.

Desma manufactures injection moulding machines and complete production systems for rubber and silicone products serving the automotive, energy, infrastructure and medical sectors.

Founded in 1903, NMP said it has specialised in the manufacture of machinery for sectors including leather, rubber, footwear, and packaging.

With headquarters near Stuttgart, Germany and Strasbourg, France, NMP comprises 10 companies in Germany, France, Switzerland, and Slovakia.

The 500-employee group claims to be global market leader in splitting, skiving and cutting technologies for 'soft materials'.