07.07.2006

Effer-Bizzocchi on the road to recovery

Last October the CTE group announced that it was acquiring Effer holding, the parent of Effer cranes and Bizzocchi aerial lifts, following its move into administration.

In order to acquire the business it formed SOL.ge with some of Effer’s senior managers. The basis of the deal was completed at the end of 2005, but for the past six months SOL.ge has essentially been renting the company, while the various stages were approved through the creditor’s courts. The last stage of that process was completed on June 28th.

Since January the company has lost no time though, in rebuilding the business, the first quarter saw revenues of €8.1 million with a small profit, in spite of delays and difficulties with the Bizzocchi take over.

With the first half now complete the company has reported revenues of €20.4 with a significantly improved profit margin. The official results will be presented in mid July.

The group goes into the second half of the year with a very healthy order book and expects to exceed sales of 44 million in its first year under new ownership. Employment has climbed to a point where it is 278 today with more employees returning each month,

Giovanni Scarlini, SOL.GE Spa general executive manager said:

“After a first period during which we have focused above all on the resumption of the activities and relations with customers and suppliers, we have started a phase of deep company transformation. This program will involve a gradual rationalisation of plants and of product lines.

A project management team has been assembled to drive this next phase.A primary objective will make the most of the technical engineering capability of Effer with the intention to improve on its historical share of the loader crane market, extending the brand into additional market segments”.
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Giovanni Scarlini, general manager of Sol. Ge

“The synergy of the sales’ know-how of the CTE group and a renewed attention to the most modern concepts of industrialisation and standardisation will allow us to face the more qualified competitors and regain Effer’s market shares.

We are focused on the market and on the customers with the aim to supply a great service to both new and existing customers. We have now obtained the confidence of the banks, and our suppliers’, an essential element to guarantee the flow of materials and of information”.