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Société Générale de Financement du Québec joins forces with KPM SpA from Italy to create KPM North America
Rome, February 3, 2000 - In the presence of Bernard Landry, Québec’s Deputy Prime Minister and Minister of State for the Economy and Finance, Claude Blanchet, Chairman of the Board, President and CEO of Société générale de financement du Québec (SGF) and Silvano Piccinini, President and CEO of KPM SpA, today announced the creation of KPM North America, a corporation specialized in the manufacture, assembly and distribution of pneumatic cylinders, valves and filters-regulators-lubricators (FRL). The total investment is of the order of $14 million and will create 45 jobs.
The world‑class plant, located in Ville d’Anjou, will have a production capacity of 210,000 cylinders and an assembly capacity of 50,000 valves per year. The products manufactured incorporate high-performance materials and rely on the just‑in‑time manufacturing process and the modularity principle of interchangeable parts. Four patents have been filed covering KPM products and procedures. The plant’s procurement needs will be met mostly by local suppliers.
With this investment, KPM SpA, which has subsidiaries in France, Brazil and Argentina, has gained status through its revolutionary products as a small, high-technology multinational.
The investment will be used primarily for the company’s start-up, acquisition of fixed assets and working capital. There will be virtually no impact on the environment. In keeping with its mission, SGF will take a 49% holding in the capital stock and its partner 51%. Investissement Québec will contribute to the project by way of its loan guarantee program.
"This is the first production plant in Quebec to manufacture pneumatic components. Moreover, all analyses indicate that the products offered by KPM NA will be competitive on the U.S. northeast and mid-west markets, as can be seen by the interest shown by distributors and user clients. Currently, the need for pneumatic components is primarily met by imports from Europe and Japan," said Claude Blanchet.
"The SGF has again shown its ability to attract new business to Quebec in the value‑added sectors, particularly from foreign investors," said Deputy Premier Bernard Landry.
The industrial machinery, automobile, agrifood, textile and wood processing industries are the major users pneumatic cylinders and valves (components).
In keeping with its five-year plan, SGF will make a $325-million capital investment by way of SGF Minéral in the goal of attracting investments totaling more than $2.5 billion. The Société already has holdings in eleven companies active in this sector, which represents a capital investment of about $411 million.
SGF Minéral inc., a wholly-owned subsidiary of the Société générale de financement du Québec invests capital in the research and development of strategic mineral deposits, production of light metals and the industrial processing of these metals in Quebec, through a combination of expertise, leading‑edge technology and local and international financing.
The mission of Société générale de financement is to realize industrial projects meeting normal profitability requirements, in collaboration with business partners. Since 1985, SGF has generated investments of about CDN$6.7 billion, leading to the creation of 22,000 direct and indirect jobs. As of December 31, 1998, consolidated assets totalled CDN$1.8 billion. Companies in which the SGF holds had a total of CDN$10 billion. SGF has 34 international partners operating in Québec.
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Source :
Jean-Yves Duthel
Vice-president, Communications and Public Relations
Société générale de financement du Québec
Tel.:
Pierre Tieran
President and CEO
KPM North America
Tel.:
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