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Primo acquires all shares in Profilex

As part of a long-term growth strategy, Primo has decided to expand activities in China through an acquisition of one of the major profile extrusion specialists in the business: Profilex, with whom Primo has been running a joint venture since 2004.

In 2004, Primo and German profile producer Profilex entered into a joint venture, establishing Profilex International GmbH under the leadership of Profilex’ owner and founder Klaus Porath.

Now, Primo has acquired all shares in both Profilex International GmbH in Berlin and its subsidiary Profilex Plastic Technology in Zhuhai, China, which is where all Profilex products are manufactured.

A stronger presence in China

The acquisition of all Profilex shares means that the Primo Group will have a strong presence in China, where the potential for growth is high. CEO Claus Tønnesen explains:

“Many international corporations have established their own production in China and require a local profile development partner in order to be able to export quality products to markets all over the world.”

Production in China based on European skill and experience makes perfect sense for Primo, Claus Tønnesen explains: “Our international customers require agile partners capable of creating a setup to match their needs – and now, with the strengthening of our presence in China, we will be able to respond quickly and to follow our customers from the very first phases of a development project.”

A strategy of expansion and acquisition

Since the dramatic downturn in the international markets in 2008, Primo has focused on its core business and on creating a healthy company with a solid turnover. With the acquisition of Profilex, Primo intends to continue on a path of international expansion and is now established in eight different countries with a total of 14 subsidiaries.

“Our full ownership of Profilex marks an important milestone for Primo, as we will now substantially increase our presence in China,” says Claus Tønnesen. “With the acquisition of Profilex, we can also add a new business area to our portfolio: Packing tubes, which will be produced in China and managed via Profilex’ facilities in Berlin under the leadership of Joachim Dausch, Primo’s managing director in Germany.”

Packing tubes a new business area in Primo

Profilex is a world leader in packing tubes designed specifically to package and ship sensitive electronic components. Joachim Dausch explains: “Packing tubes are demanding products, because the life cycle of electronic components is very short – from development to production is sometimes a matter of weeks. This means that the tubes used to package the components must be developed and produced almost as quickly – and must live up to very high standards in terms of tolerances and material properties. With the electronics industry booming, this market is very interesting for us.”

Profilex will remain as brand name

The Profilex brand will continue as an individual brand name within the Primo group of companies, and Primo expects to build on the existing setup in Zhuhai and Berlin.

With over 100 skilled and experienced employees, Profilex will form the basis of an efficient and quality-minded business for the Primo Group.

Visit Profilex here >>


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