Phoenix AG: Sale of hydraulic hose unit in Malaysia
Phoenix AG has sold its Malaysian hydraulic hose business, which was previous handled by the company’s Fluid Handling division, to Australia’s Ryco Hydrau-lics Pty. Ltd. The transaction included production facilities, the site and inventory as well as the development and production know-how of the Malaysian location.
For Phoenix, this sale represents yet a further step in the direction of implementing the company’s declared goal of concentrating on profitable growth ar-eas that allow Phoenix to stake out a position of market leadership. The com-pany’s Fluid Handling Automotive activities rank it among the European market leaders and Phoenix is the world market leader in the area of special hoses for the Oil & Marine market, but Phoenix does not occupy a significant position in the international market for hydraulic hoses for industrial applications. The com-pany sold off its European hydraulic hose business in January of the current year.
Production of hydraulic hoses in Malaysia generated 2002 revenues in the amount of € 9 million for Phoenix. With 84 employees, who will be retained by Ryco Hydraulics Pty. Ltd., the Malaysian location produces hydraulic hoses for the Asian Market. The two parties to the sale have agreed not to divulge the sale price.