"The decision to exit these operations was made as part of Loparex Group's strategy to create sustainable growth by focusing on certain value-added products and expansion in emerging markets", states Pentti Kallio, Loparex Group CEO.
The Loparex Group going forward will consist of Loparex LLC with operations in Iowa City, IA, Hammond, WI, Eden, NC, Cullman, AL and the Willowbrook, IL head office as well as Loparex BV in the Netherlands, Loparex Asia Pacific in Guangzhou China and Hong Kong and Kaygee-Loparex in India, a 50% Joint Venture.
Loparex's proforma 2008 revenue is estimated to be €270 million and the group will employ 1100 people; 80% of Loparex's business will come from North America.
The sale will be closed after the necessary approvals have been obtained from competition authorities. The estimated timetable for this is July 1, 2008.