France’ SNPE, Sweden’s Saab and Finland’s Patria have signed a binding agreement to merge their activities in propellants and explosives within a new company named European Energetics Corporation (EURENCO).
SNPE will own 60.2 % whilst Patria and Saab will share 19.9 % of the new company.
EURENCO will be operational by the beginning of 2004, after receiving all necessary authority approvals, with a starting turnover of more than 100 million Euros and 850 employees. Based in Paris, the company will have subsidiaries operating in Belgium, Finland, France and Sweden.
According to a statement issued by Saab, the intention of the shareholders is to create one of the world’s leading propellants and explosive companies, with a high level of technology and knowledge, making safe and reliable supplies to ammunition manufacturers in Europe and the rest of the world.
EURENCO will develop its five industrial plants (Clermont in Belgium, Vihtavuori in Finland, Bergerac and Sorgues in France, Karlskoga in Sweden) around their respective strengths.