World-wide co-operation with competitor...

2005-09-01

The market for material handling equipment has been very pressed during the latest years, and this development seems to continue. Therefore it is necessary to search for new opportunities in order to create and maintain growth. 

Logitrans A/S, manufacturer of material handling equipment for more than 35 countries world-wide, has entered an agreement with one of the biggest manufacturers of material handling equipment in the world. Due to competition, the company name will not be mentioned here. 

"The agreement means that we are to manufacture stainless products for one of our biggest competitors. The company chose to co-operate with us, because we have great competence and knowledge within stainless environments and because we have been able to adjust the product according to the requirements of the customers. But also because we can meet the request for a flexible and quick delivery".

Logitrans also manufactures and sells the stainless products in their own name, both in Denmark and in the export markets, but this agreement will double the production of stainless products, and will therefore lead to many production related advantages. 

"However, we do not expect a fall in price, as the prices of the stainless products have increased considerably and as our prices are already now competitive. But it will help us maintaining our necessary level of earnings. Our future objective is to be the leading manufacturer of high quality stainless products world-wide, and this agreement helps us fulfilling our objective", Henning Lyager ends the interview. 

This agreement is expected to increase the turnover of Logitrans A/S by 5-10%.