2011 July – Magontec Group moves forward with a new shareholder

Magontec is pleased to announce that its new shareholder is the Australian-based Advanced Magnesium Limited (AML). On 4 July 2011 the ASX-listed AML acquired 100% of the Magontec Group. Henceforth the wholly owned businesses of AML will operate under the ‘Magontec’ brand.

The combination of Magontec and AML establishes a global magnesium manufacturing business supported by shareholder groups in Asia and Australia. This is a strong corporate platform for funding growth opportunities in the magnesium industry.
Magontec is a leading supplier of magnesium alloy and recycling-services as well as magnesium based and electronic solutions for cathodic corrosion protection of water tanks. AML is an emerging magnesium alloy manufacturer with a significant magnesium alloy technology portfolio.

“We see great opportunities for this new corporate entity”, said Günter Franke, CEO of Magontec Group and newly appointed Managing Director of AML. ‘As a listed company the new group will be able to seek support from existing and new shareholders for our growth strategy. Our customers can expect to see a continuation of the reliability and stability that has been a hallmark of Magontec service of its almost 60 year history. Together with AML we expect to be able to further improve our customer offering and no current contracts will be effected by this transaction.”

The new company is well positioned to capture the considerable growth opportunities in the magnesium market. It has a combined alloy manufacturing capacity in excess of 60,000 metric tons p.a. Over the coming months the Board and management of AML will outline a new business plan detailing the group’s production, technology and geographic diversification ambitions.

Mr Franke added: “Our growth strategy is well advanced, focusing on upstream activities and a strengthening of our market position. Our aim is to sit at the forefront of the global magnesium industry and to continue to serve our customers in a uniquely stable and proactive way.”

MENU