Wedeco Continues Its Successful Acquisition Strategy
Wedeco AG Water Technology, a supplier of water disinfecting systems using ultraviolet (UV) light, has acquired the business sector of UV lamps and peripheral devices from the quartz lamp producer Dr. Ing. Felix Müller GmbH & Co KG in Essen, Germany through its newly formed company Advanced UV Light GmbH as part of an asset deal.
Müllers sales during the financial year 2000 were € 11.5 million, employing a workforce of 60. The Müller quartz lamp factory has been producing UV lamps for a wide range of applications for 75 years. Wedeco was formerly linked to the quartz lamp producer by a supply and cooperation agreement. Müller produced UV low-pressure lamps, developed by Wedeco, exclusively for Wedeco.
Advanced UV Light GmbH will focus on more in-depth research and development work. Strong internal and external growth of Wedeco called for the development of even more powerful lamps and the faster expansion of production capacity. Consequently, according to Werner Klink, chairman of the board of directors of Wedeco AG, taking UV lamp production under Wedecos own control was an extremely useful move. Wedeco was now the only corporation on the world market that could offer software and hardware from its own development and quality-assured production for the entire range of water disinfecting systems and equipment.
"In all three operational sectors: drinking water, sewage and industrial process water, the availability of powerful UV lamps represents the decisive competitive advantage not only as regards the investment costs, but primarily in the operating costs of the UV systems," he said. "The further reduction of reaction time (time to market) between research and development on the one hand and the production of new generations of even more efficient lamps in conjunction with highly sophisticated electronic controllers is a decisive criterion for selection in competition. Consequently, when it comes to operating costs, Wedeco has a major lead over all competitors. Building on this lead is one of the most important aims of our policy of acquisition."
Another good reason for the decision to acquire the UV lamp business sector from the quartz lamp producer Müller at the present time was the strong growth in demand for physical disinfection in new or formerly more neglected areas of application with high sales potential. This includes maintaining hygiene in public swimming pools. As regards sewage treatment, Wedeco now expects, given the successful commissioning of the UV system in the sewage plant of Bad Tölz to raise the water health standards of the River Isar, that other federal states in Germany will be unable to continue to ignore the international trend towards chlorine-free sewage disinfection. This applies not only to the destruction of pathogens but also increasingly to the removal, conversion and dilution of undesirable residues in water using combined processes in which UV disinfection played a major part.