One of the benefits or detriments of sitting as a trade analyst is the
obliteration of one’s thinking process, as one meanders through the generation
of prolific trade industry rumors. To wit and recently ; the rumored purchase of
Ney Plastics by Falken Industries. I believe the rumor will materialize if only
because it would add over 260 stock Items to Falken’s Bottle and Plastic Product
Conceptions Offerings, and Greatly Expands its PET PVC Molding Capabilities.
Neither company will confirm nor deny anything – did you expect anything
else ? But hamburg
sign new snapbacks the industry and trades are not deterred. They
are scuttle butting all over the place. There is no secret that global leader
Falken Industries Ltd, best known for its Clean Plus? product conceptions and
trading under symbol FLKI, is acquisition hungry for small complementary
manufacturers. In fact it disclosed as much in a recent press release. Given
that 60% of its product offerings are packaged in plastics of various ilk it is
no wonder that Falken is demonstrating an interest – which as I said it will not
deny, in acquiring a producer of PET PVC packaging. Ney is a perfect fit as a
manufacturer and decorator of plastic bottles and containers primarily for the
personal care, auto care, housewares, and food markets. It is also a blow molder
of high-density polyethylene (HDPE) Snapbacks
news and polyethylene terepthalate (PET) bottles and jars for the
personal care, pharmaceutical, nutritional supplement, and niche food and
beverage markets. And finally it is one of the few remaining manufacturers of
Polyvinyl Chloride PVC, product important to Falken’s more aggressive chemical
formulations. In addition, Ney’s Technigraph decorating division provides
environmentally-friendly container decorating services.
Manuel Garcia,
communications officer at a recent press conference appointed just after
spectacular results for YE 2011, to discuss 2012 opportunities and goals stated
: “I can neither confirm nor deny the rumors, but will say that as of now, no
expression of intend has been exchanged between the two companies. I will say
however that Ney is a well-run privately owned company with attractive product
lines in household chemicals and food packaging all of which would nicely
complement Falken’s product conceptions and admittedly offer a number of
important synergies.”
Come on – they cheap Brand
Snapback hats have to be kidding ! This acquisition would be an
important first step to developing new business in key industries which are
critical to FLKI’s stated growth plan. Falken’s announced growth strategy is to
include the acquisition of successful companies whose product lines and customer
contacts open new opportunities for Falken’s global distribution network. Ney’s
product lines greatly expand the number of products FLKI’s distributors can take
to the market. Garcia when pressed, added : “The opportunity for cross-selling
stock products into both companies’ existing customers would effectively provide
some immediate sales opportunities and also help Falken move toward its
long-term growth objectives.”
Ney, who is a Falken group supplier, has
established a reputation in the industry for being a nimble, flexible and
reliable supplier of PET, and HDPE packaging, and also manufactures some
polypropylene and PVC items. Ney utilizes basic blow molding technologies,
including Extrusion Blow Molding (EBM), Injection Blow Molding (IBM), Single
Stage Injection Stretch Blow Molding (ISBM) and Two-Stage Stretch Blow Molding
(also called Reheat and Blow, or RHB). The company also manufactures preforms on
state of the art injection molding equipment to support its RHB operation or to
sell preforms directly to end users. Ney’s 2-stage PET operations will be
complementary to Falken’s recent investments in 2-stage blow
molding.
Capprocon of Norway, is the usual advisor to Falken, but
surprise surprise, they had no knowledge sufficient to confirm or deny !
Falken has admitted at past conferences that its current strategy is to
more than quadruple in size over the next five years through a stars
Snapback Hats combination of key acquisitions and organic growth. I
think that is an underestimation of the company’s potential growth for a large
number of reasons, many of which are obvious by a quick tour on Google of the
term “OTC : FLKI”.
Falken Industries Ltd OTC : FLKI is a
diversified industrial conglomerate that operates in Chemicals, Wet Wipe and
Biodegradable Technology. Falken Industries Ltd is the concept behind more than
160 products distributed through a network of global platforms and the recipient
of trade awards for innovations, biodegradability and environmental and health
quality standards. As a reliable partner FLKI creates chemistry to help
distributors and retailers in virtually all industries to be more successful.
With its high-value products and intelligent solutions, FLKI plays an important
role in finding answers to global challenges such as environmental protection,
energy efficiency, and mobility.
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