CONSOLIDATION IN THE KLIMA-THERM GROUP KLIMOR MERGES WITH CLIMA-PRODUKT AND BARBOR

The Management Board of the Klima-Therm Capital Group made a decision on the consolidation of their production activities by merging Klimor with Clima-Produkt and Barbor purchased in June this year. Klimor will become one large entity that draws on the potential of each company, measured among others with human resources, experience and production capacity of three plants: in Gdynia, Pszczółki and Skowarcz. Klimor will increase its competitiveness on the HVACR market and respond to their Customers’ needs in a complex manner. The planned merger will take place on January 2, 2019.

The decision about creating one large production entity under the KLIMOR brand results from a detail analysis of business and operating factors which will increase the possibilities of further dynamic development of the Klima-Therm Group on the ventilation market. Consolidation of Clima-Produkt and Barbor with Klimor will allow the organization to reinforce the production potential by increasing the scale of activities, for more effective use of production capacity as well as for accumulation of knowledge and experience of each of the three entities. After the formal merger, planned for January 2, 2019, three production plants of Klimor will function in Gdynia, Pszczółki and Skowarcz (Pomeranian Voivodeship) which will employ more than 300 people in total – including managers, technical and commercial specialists, production employees and office employees.

“We would like our Customers to experience benefits from the synergy as soon as possible”, Marek Kupiec, President of the Management Board of KLIMOR underlines and adds: “We will systematically increase production capacities which will surely accelerate order implementation. Further changes and enhancements as well as full use of the technological potential and human resources will allow us to better adjust our business to the needs of our Customers, and they will consequently translate into intensification of sales in Poland and abroad. What is equally important, consolidation based on many years of production traditions and product quality which the merging entities are famous for, will increase our competitiveness, bringing us closer to the goal which is to become the leader in the ventilation industry”, Marek Kupiec concludes.

Currently, the Management Board of Klima-Therm focuses on the formal elements of the merger, on the development of a new organizational model and optimization of key business processes, most importantly production processes. Soon the two remaining plants in Pszczółki and Skowarcz will also be covered by managerial, administrative and logistics standards and procedures that are already applicable at Klimor plants in Gdynia. The Company also considers centralization of processes significant from the perspective of cost rationalization, however it is assumed that the three Klimor plants will remain operationally independent.

Consolidation planned for the beginning of 2019 will takes place through incorporation, i.e. transfer of all the assets of Clima-Produkt Sp. z o.o. and Barbor Sp. z o.o. to Klimor Sp. z o.o. with its registered office in Gdynia, ul. B. Krzywoustego 5. With the legal merger, Klimor will take over all formal obligations of Clima-Produkt and Barbor towards their Customers, Contractors and Employees.