ContiTech increases European footprint with Vertech acquisition

STOCKHOLM—Continental A.G. is increasing its Northern European footprint in heavy belting with the expected acquisition of Vertech A.B.

ContiTech's purchase of the Kiruna, Sweden-based industrial belt manufacturer is subject to approval by antitrust authorities, according to ContiTech.

Terms of the transaction were not disclosed.

"With a footprint in Kiruna, we will not only significantly improve our local presence in the largest mining area in Europe, but we will further expand our product and service level to our industrial customers in this region," said Song Qi, head of Continental's Industrial Solutions EMEA business area. "This acquisition is a milestone for us to support the commercial and industrial exploitation and use of rare earth after the discovery of these materials in this area."

Vertech, which specializes in belting for mining applications in Kiruna and Svappavaara in Sweden, and Narvik, Norway, now represents the northernmost belting location for ContiTech.

Conti calls the acquisition a "milestone achievement" in its portfolio of full-service belting systems.

"The base of our future success in this region will be the excellent work of our employees," Qi said. "Therefore, I am very proud and happy that with the current staff of Vertech A.B. we get a well-rehearsed and highly motivated team on board that exactly knows what customers want in this challenging environment and that has been delivering high-quality results for years."

The privately owned Vertech launched in 2002 and has about 20 employees.

The company is ISO-certified to 9001 and 14001 standards. Outside of belting, Vertech offers belt scrapers, wear rubber and other rubber products.

Continental's industrial business in Europe—part of a major restructuring effort at ContiTech earlier this year—focuses on mining, agriculture, automotive, construction and home projects.

The business area offers a holistic approach, ContiTech officials told Rubber News earlier this year, one that takes an environmental approach whenever possible—in plant design, production, installation and preventative maintenance.

Overall, rather than being set up more along product lines like industrial and hydraulic hose, conveyor belting, power transmission belts and air springs, ContiTech now is focused on geographic regions.

ContiTech is aligned now as Industrial Solutions Americas, Industrial Solutions EMEA (Europe, the Middle East and Africa) and Industrial Solutions APAC (Asia and Pacific).