Caravell also began the transfer of production of upright coolers and freezers out of its Danish plant in Aalestrup to a new factory in Turkey. Caravell said uprights production in Denmark will close next week to begin moving machinery to Turkey, which is expected to begin producing uprights in January 2007. Chest freezer production will remain in Aalestrup.
It is one of the latest moves from Denmark's Caravell Group since it was acquired in July by Metalfrio Solutions Ltda., a leading player in the commercial refrigeration business in Latin America and with a strong North American presence.
Caravell has a strong presence in Europe and Russia, and the joining of the companies created a a new entity with a global scope. Metalfrio acquired two key European companies in the acquisition: Caravell A/S and Derby A/S, and their respective brands.
The Brazilian company's intends to become on of the 3 largest global players in its core business. The newly formed group is expected to have a turnover of 200 million euros (approx. U.S. $ 255 million) in 2006.
Metalfrio, as well as the Caravell and Derby, are established brands in professional refrigeration equipment and services.
"Our customers have been consolidating supplier relationships and purchasing on global basis over recent years. They want suppliers with multiple production facilities, able to serve them in a myriad of different geographies with the same high quality standards in terms of products and services" says Luiz Eduardo Moreira Caio, president and CEO of Metalfrio.
The primary motivation for the acquisition is the increasing importance of economies of scale in the sector. With the acquisition of Caravell, the Metalfrio group’s total annual production will grow to over 370,000 units, bringing competitive benefits to its factories in Brazil, Denmark, Russia, and Turkey.
Luiz Eduardo Moreira Caio added new responsibilities temporarily when he took over as acting managing director of Caravell Solutions A/S in August, after the departure of Managing Director Brian Pedersen. Caravell is recruiting a permanent replacement for the job.
Luiz Eduardo Moreira Caio is the son of the founder of Metalfrio Solutions Ltda. He has an engineering background and served as managing director for the Latin American operations of BSH Bosch And Siemens Home Appliances Group.
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