Company Announcement - DIHAG Holding together with Dutch company Royal IHC, took over the Belgian steel and iron foundry Allard-Europe NV. DIHAG Holding based in Essen, Germany, and Royal IHC, specializing in shipbuilding and equipment for maritime construction, have formed a joint venture. DIHAG holds a 60 percent share, Royal IHC 40 percent. This strategic takeover will shore up DIHAG's position as the leading foundry group in Europe.
The Allard-Europe NV steel and iron foundry in Turnhout, Belgium was established in 1920 and specializes in wear-resistant materials and primarily manufactures products for the offshore, dredging, shipbuilding and energy industry. "With the Allard-Europe takeover, we are strengthening our position in Europe and adding high-quality and application-engineered materials to our portfolio," explain Stefan Mettler, Technical Director, and Dr. Heiko Brauckhoff, CSO of DIHAG Holding. "The joint venture with Royal IHC will allow us to enter new industries and target markets in the area of subsea construction." With the merger, DIHAG Holding and Royal IHC are bundling their strengths in an outstanding market environment with intense pressure on prices.
"DIHAG Holding brings technical expertise from foundry processes to the table, and they are thus the right partner for us to continue to develop materials for our demanding market," explains Sander Korving, Director Supply Chain Management at Royal IHC. Allard-Europe will increasingly deliver directly to Royal IHC in the future - the competitive and decisive advantage being the short distance between the Netherlands and Belgium. Allard-Europe currently has 100 employees - this number is expected to grow in future to reflect the planned full utilization of the plant.
Allard-Europe produces special castings weighing up to 40 tons and has steadily focused on material development through the years. The company is now one of the leading suppliers worldwide of castings for use in the demanding and abrasive conditions undersea. The company specializes in one-off castings and low-volume production runs. Annual capacity of shipping weight is around 4,500 tons. Total annual sales at Allard-Europe are approximately Euro 25m.