Exel Composites' strategic initiatives in India and in Belgium are progressing accelerated by successful share issue
EXEL COMPOSITES PLC INVESTOR NEWS 28 JUNE 2024 AT 13:30 EEST
Exel Composites Plc's strategic development projects have progressed in the first half of 2024 according to the announced plan.
Rights issue and new financing agreement strengthen balance sheet
Exel Composites Plc's rights issue, successfully completed in June, strengthens the company's financial position and enables accelerating the company’s growth and transformative strategy. In the clearly oversubscribed rights issue, with subscriptions received for approximately 141 per cent of the offer shares, the company received gross proceeds of approximately EUR 21.8 million.
During the second quarter of 2024, Exel Composites agreed on a new financing agreement of EUR 52.4 million to refinance its existing bank loans. Backed by the new financing agreement in force since June and the funds raised in the rights issue, the company is swiftly advancing strategic initiatives it was preparing during the first half of the year, including, among others, the following measures:
- Equipping of the new production facility in India accelerated
In July 2023, Exel announced a strategic decision to expand its manufacturing operations in India and to build a new facility in Goa, optimised for serving wind power industry customers in India and globally. The equipping of the manufacturing facility built by the joint venture between Exel Composites and Kineco Group is underway, production lines have been ordered and recruitment and training of personnel have begun. Production is due to start during 2024 as originally planned.
- Strategic factory review in Belgium proceeds to the action phase
Exel's new strategy, published in October 2023, includes a plan to carry out a strategic review at three of the company’s factories. The plan is based on Exel's strategic objective to improve the efficiency of its production and utilisation rates of its factory network, thereby improving profitability. The strategic review of the factory in Oudenaarde, Belgium, which started in January 2024, is progressing according to plan. Exel has evaluated the factory's role and different options in the new operating model, and the company will proceed to the action phase. Conclusions and anticipated measures will be communicated to the extent permitted by local legislation.
- Sale of the production facility in UK progressing
As part of optimising its factory network, Exel shut down the pultrusion production at its Runcorn factory in the United Kingdom in autumn 2023. The company has received a purchase offer for the factory property and preparations are underway to complete the transaction. The transaction is expected to be completed during the second half of 2024.
Additional Information:
Lilli Riikonen, Head of Investor Relations
tel. +358 50 351 1128
Mikko Rummukainen, CFO
tel. +358 20 754 1335
Exel Composites in brief
Exel Composites is one of the largest manufacturers of composite profiles and tubes made with pultrusion and pullwinding technologies and a pultrusion technology forerunner in the global composite market. Our forward-thinking composite solutions made with continuous manufacturing technologies serve customers in a wide range of industries around the world. You can find our products used in applications in diverse industrial sectors such as wind power, transportation and building and infrastructure.
Our R&D expertise, collaborative approach and global footprint set us apart from our competition. Our composite solutions help customers save resources, reduce products' weight, improve performance and energy efficiency, and decrease total lifetime costs. We want to be the first choice for sustainable composite solutions globally.
Headquartered in Finland, Exel Composites employs over 600 forward-thinking professionals around the world and is listed on Nasdaq Helsinki. To find out more about our offering and company please visit visit www.exelcomposites.com.