Luma Automation invests upon the Danube
The Luma Automation Capital Group has successfully acquired IRON-TECH Zrt., one of the Hungarian leaders of the market of the precision metal parts manufacturing mainly for automotive and rail industry.
The company located in Szigetvár provides also structural elements used in other segments of industrial production.
“The acquisition of Iron- Tech perfectly meets the goals of our development strategy where we grow not only by organic growth but also by acquisition of strong small and medium entities with potential, operating on markets of Central and Eastern Europe,” explains prof. Radosław Miśkiewicz, a founder and Chairman of the Board of Directors in Luma Holding, which the Luma Automation Group belongs to. I am certain that only flexible organisational structures are prepared for consolidation in globalisation processes. Investment in IRON-TECH not only will complement our production capacity, but it also will allow us to open to Southern part of Europe more actively,” he adds.
It has been another acquisition of the Luma Automation Group in recent years. Last year, Zakłady Metalowe Postęp in Gliwice and Hydomat S.A. in Warsaw joined the Group.
Promising future of the Hungarian automotive
Despite very hard, pandemic time, the automotive production increased in Hungary at the end of 2020. According to data published by the „Budapest Business Journal”, yet at the end of 3rd quarter it was believed that the automotive sector returns to its full performance and the German investors in Hungary expressed their optimism as to the prospects for 2021. In the view of the supply chains redevelopment, Hungary remains attractive location. Next investments upon the Tisza and Danube have been announced by Asian producers from South Korea, China and Japan, but also by German and French companies. Hungary may also benefit from production relocation to other continents which took place over last decades.
“It is undeniable that the supply chain matter becomes more and more important because of the coronavirus pandemic and environmental issues. More and more often - and the pandemic has clearly speeded up the change - the question of short supply route is the key factor while choosing the suppliers. This will further strengthen Poland and Hungary as places worth locating the production in,” states Wojciech Derda, CEO of the Luma Automation Capital Group. “The benefits entailed by the synergy are also important.
IRON-TECH processes cast iron castings and it will be cooperating with Odlewnia Kutno within this scope. We are convinced that eventual combination of potentials of aluminium casting division (Saga in Teresin, Poland), stamping plant (ZM Postęp in Gliwice and Hydomat in Warsaw, both in Poland) and the Hungarian company will allow us to provide our partners, apart from semi-products, also with elements ready for direct assembly in final products,” points out Wojciech Derda. IRON-TECH Zrt., established in 1999, employs over 250 people, conducts metal precision metalworking and manufacturing. The Hungarian company is a supplier for giants such as Denso, Bosch and Knorr-Bremse.
PEKAO Investment Banking S.A. was a transaction adviser for Luma Automation.
The Luma Automation Group invests in companies specialising in advanced production technologies and metal precision manufacturing and metalworking. The Group is developing both organically and through acquisitions. By consolidating medium entities, chances for mutual development thanks to synergies under conditions of financial stability are created. Currently, the Group consists of five companies: grey and ductile cast iron foundry in Kutno, Poland; a producer of zinc and aluminium castings - Saga Poland; a toolshop - Saga Tools both in Teresin, Poland; Zakłady Metalowe Postęp - a producer of stamping parts and structures in Gliwice, Poland; a stamping plant and toolshop Hydomat in Warsaw, Poland.