November 2014

JFE Engineering Corporation, the Japan based company, has agreed to acquire 100% of the shares in Standardkessel Power Systems Holding GmbH, the holding company of Standardkessel Baumgarte Group. 

JFE Engineering Corporation, a subsidiary of JFE Holding Inc., is a market leader for "Grate Firing Systems" and "Gasifying and Direct Melting Furnace Systems". With more than 350 furnaces installed, JFE Engineering has its main experience in the Japanese market. With regard to biomass power plants, JFE Engineering  is specialized on the construction of large sized power plants employing circulating fluidized bed boilers. In the last fiscal year, JFE Engineering generated revenues of roughly EUR 2bn with a total workforce of approx.7,400 people. 

Standardkessel Baumgarte Group, including  Standardkessel GmbH (Duisburg), Baumgarte Boiler Systems GmbH (Bielefeld) as well as three service companies in Germany and Saudi Arabia, posted revenues of around EUR 130m in 2013. The group is mainly active in Europe and currently employs 215 people. Standardkessel Baumgarte Group has leading expertise in the design and construction of power plants and boiler systems for the combustions of residues, biomass and primary fuels. In addition, the group offers comprehensive services for its products. 

„With this acquisition, we are combining two complementary companies, which together are well positioned to address the growing market for waste-to-energy and biomass power plants worldwide"  said Mr. Hisanori Kanou, President of JFE Engineering Corporation. He further added, that "considerable growth potential is seen in the fact that JFE Engineering and Standardkessel Baumgarte Group can act as an EPC for large projects".

„The acquisition of our group by JFE Engineering provides us with the unique opportunity to market our grate technology for large waste-to-energy plants, biomass power plants, Waste Heat recovery Systems as well as direct fired boiler applications outside of Europe" stated Mr. Jörg Klasen, CEO of Standardkessel Baumgarte Group.

The completion of the transaction is subject to customary closing conditions including among others, antitrust approval.