x

Business acquisition : Protacon challenges traditional engineering companies

<< Back to Breaking News

Technology company Protacon has purchased Descal, a global operator in industrial investment projects. With the transaction formalised in January, the company climbs to the top of service providers for the pulp, paper and energy industries.

With the merger of Protacon and Descal, Finland gets a much-needed global player whose services cover the entire life cycle of industrial investment projects.

“We will represent a novel player in the industrial integration market combining industrial expert services and system deliveries to create a more coherent ensemble. In the future, the customer can get everything from a single source : one independent supplier will provide engineering design, automation systems, electric drives, condition monitoring and production quality assurance, as well as Industry 4.0 solutions and tools for management by knowledge. The industrial revolution creates new demand to which this combination efficiently responds providing at the same time new opportunities for the best players of the industry”, says Protacon’s CEO Timo Akselin.

Protacon operates in ten locations in Finland. Descal has offices in Kouvola and Mikkeli and the company employs around 50 people. With the transaction, Protacon’s number of employees will exceed 300 and the corporate turnover is expected to increase to over EUR 30 millions in 2018. At the initial stage, Descal Engineering Oy continues to use its former name and current management group operating as Protacon’s 100% owned affiliate.

“The merger of Descal and Protacon creates a possibility to expand to a market that has been until now impossible to the two companies on their own. The merger enables us to better develop our operations in areas in which we are already strong, such as our engineering and calculation knowhow for seismic regions. Protacon brings strong competence in electrical, instrumentation and automation fields ; therefore, we will be able to offer our customers more extensive service packages in the future. Activities in international markets will also be easier, as we can cater to our customers’ needs from one source”, explains managing director Kimmo Kerttula from Descal Engineering.

 

Wider range of services compared to a conventional engineering company or systems supplier

Until now, Protacon has mainly provided its industrial customers with electrification, instrumentation and automation design including automation, electric drive and information systems. Plant and mechanical engineering has been in a smaller role.

With the transaction, Protacon’s services in plant engineering will strengthen in a remarkable way. Process engineering will become a strong new area and calculation services will be complemented by world-class knowhow. The merger also brings synergy to production analysis services, in which both companies are already active.

“Descal was selected as the most suitable among several operators to complement Protacon’s range of services. Descal is an exceptionally well-run undertaking and renowned for its high-quality engineering services provided as turnkey deliveries. Its special strength areas include strength of materials and other calculation services providing a good support to process industry engineering. The company’s headquarters are optimally located in Kouvola. We seek strong growth in Descal’s current business areas and aim to establish an electrical and automation team in Kouvola in the near future”, Mr. Akselin says.

The transaction is Protacon’s second business acquisition this year. A week ago, the company announced a merger between Protacon and Netwell Oy, which aims to reinforce their business of digitalisation of communication and management.

Copyright © 2013 PaperFirst by groupenp.com. All rights reserved. Markets covered: France – Belgium – Switzerland - Spain – Portugal – Turkey - North Africa – Middle East – Latin America – And beyond…

Content Disclaimer - Legal - developed by Atmedia Communication