ACTIVITYBBE is focused into the design, fabrication, supply and installation of capital goods (energy and environmental equipment, industrial equipment and turnkey facilities).
|% stake sold||State-owned equity remaining|
|Type of deal||Buyers||Date SEPI||CCP's report||Government approval|
|Private sale (bid)||Babcock Borsig Power Group||24/10/2001||July 2000||01/07/2001|
ACTION ON BBE
The sale of the totality of the company Babcock Borsig España, which had been spun -off from Babcock & Wilcox Española to the German company Babcock Borsig Power Group guaranteed its consolidation, thanks to the new launching of its productive and commercial activity. Babcock Borsig España will receive new investments for the amount of 135 million euros, and will retain its staff of 673 workers.
BBE's privatization has meant for the Company the entry of a partner who provides workload and technology, and which allows it to regain the industrial initiative, returning to profitability after 30 years of losses.
Babcock Borsig España's industrial plan, to be developed along a 5 year period, foresees a wide-range of measures for reinvigorating the Spanish company, and which will made possible to multiply its activity 3.5 times in the third fiscal year (to be counted since the current fiscal year).
The standard sales of the new company will be of around 250 million euros, which will make it possible its leaving the losses in the third fiscal year, in which it is foreseen to reach a profit after tax of 1 million euros and of 4 million euros in the fifth year.
According to this Plan, the company BBE will be in charge of supplying all the product and services catalog of the Group Babcock Borsig AG in the field of Engineering and of capital goods for the energy and environment industries.
Before assuming the ownership of the Spanish company, Babcock Borsig AG transferred to BBE one of its technologies which is expected to grow more; coal gasifying. The German group has shut-down the facilities in which it had this machinery in the outskirts of Berlin and has moved it to the factory in Galindo, which becomes in this way the only center of excellence for the development and fabrication of this technology.
In this way, three premises of the old BWE, with over 4,000 square meters, will have the most advanced line in Europe for the fabrication of the principal parts which are needed in a coal-gasifying plant.
Continuity of the company:
On June 2002, the German group went into temporary receivership, approved by the competent authorities on September of that year, which resulted in a reorganization by which a number of the Group affiliated companies and activities became part of a company named Babcock Borsig Power Systems, which was later sold to a Japanese group, while the remaining, amongst which was BBE would be sold or subjected to an orderly winding-up.
As a result of the analysis carried out for Babcok Borsig at SEPI's requirement by independent consultants, this group considered that BBE's continuity was unfeasible with its current size, and it envisaged as the possible solutions the reorganization, including a workforce adjustment, as a show of its commitment with the company, or the winding-up.
SEPI defended the necessity of seeking the continuity of the corporate project and took the decision of temporarily suspending its contributions, as long as a solution for the future of BBE was not found, while it continued collaborating in the search of a solution for the company and its employees.
After the sale to ATB of Babcock Borsig España, SEPI will resume the contributions committed in the privatization process of Babcock Borsig España, once the transaction has been approved by the Spanish Council of Ministers and the transfer of the ownership of the Spanish company has been formalized. Both circumstances took place on January 30th, 2004.
Equally, this state-owned company will continue to watch over the fulfillment of the industrial plan and safeguarding the maintenance of the employment level.
Since this was a process between two private companies, the sale contract wasn't signed by SEPI, which, however, signed a document with BBX by which it authorized the sale of BBE's shares, and another one with ATB, by which it commited itself to reactivate the pending aids in the privatization.
The European Commission accepted on December 16th, 2003 the request made by SEPI, BBX and ATB for having reactivated the feasibility plan, and to resume the pending contributions of the privatization process, which amount to 104 million euros.
The European Commission stated that the sale agreement between BBX and Austrian Energy & Environment, (AEE), which is a wholly owned affiliated company of ATB, met the requirements needed for working for the future of the corporate project of Babcock Borsig España. These contributions had been suspended until BBE's owners were to submit a proposal or a buyer which assumed the maintenance of the activity of the Spanish company.
The Buyer's commitments:
The Buying group assumes in its acquisition agreement a guaranteed industrial plan for a 3-year period, in which it commits itself to turn BBE into an integral company (engineering, manufacture, management) in the fields of power plants and environmental facilities, with the possibility of adding new product lines, and capable of carrying out turnkey projects, with a special emphasis on the areas of engineering and those with a highest added value.
The markets on which it will basically focus are those of Spain, Portugal, North Africa and Latin America.
ATB will invest 76 million euros in BBE during the next 5 years, and will provide 320,000 hours of workload.
Antes de imprimir este documento asegúrate de que es necesario. Proteger el medio ambiente está también en tu mano.