SteelcoBelimed sets the course for growth and profitability

Media announcement

Zug, September 30, 2024 – The SteelcoBelimed joint venture, in which METALL ZUG has a 33% stake, announced its plans to achieve its growth ambitions and profitability targets today. These include a focus on the existing locations, a streamlining of the product portfolio and a bundling of the organization. During the integration phase, which lasts around three years, SteelcoBelimed will position itself for profitable growth, with a target EBIT margin of 10% in the medium term.

On June 7, 2024, the SteelcoBelimed joint venture, based in Zug, was able to close the merger and commence operations. Today, after around 100 days, SteelcoBelimed has announced its target picture. The headquarters in Zug and all existing production sites in Sulgen, Grosuplje, Riese and Cusano will be retained. Their intended purpose will be modified and significantly focused as part of the transformation project:

• Zug, Switzerland: headquarters of the joint venture and hub for digitalization and innovation 
• Sulgen, Switzerland: Center of Excellence for sterilization in the Life Science area
• Grosuplje, Slovenia: Center of Excellence for washer/disinfectors in the Life Science area, with an associated training academy
• Riese, Italy: Center of Excellence for washer/disinfectors in the Infection Control area, as well as for endoscopy reprocessing and automation, also with a training academy
• Cusano, Italy: Center of Excellence for sterilization

With the focusing of the locations, a dual-brand strategy will be initially pursued on the product side, while the company's corporate identity will be gradually converted to the SteelcoBelimed brand. At the same time, the product portfolio will be streamlined over the next few years. The future product portfolio will be supplemented by new developments that combine the strengths of the respective Belimed and Steelco devices.

Organizationally, SteelcoBelimed will be divided into two business units, Infection Control (Hospital) and Life Science (Pharma), under the overall management of Christian Kluge. The Infection Control division is headed by Alessandro Caprara (former CEO of Steelco) and the Life Science division is headed by Ralf Kretzschmar (former CEO of Belimed Life Science). The management of the post-merger integration program and the finance division are also positioned at group level. The two business units will leverage synergies in the central functions and ensure close cooperation. This will result in a leaner organization and a better allocation of existing competencies. Thanks to these efficiency measures, the headcount is expected to stabilize at the current 2,100 full-time positions despite ambitious growth targets. 

SteelcoBelimed will strengthen its position as number three on the global market with the aim of becoming the most customer-centric, innovative and reliable provider for cleaning, disinfection and sterilization. After the integration phase of around three years, SteelcoBelimed will enter the growth phase. In addition to its ambition to grow well above the market over the next few years, SteelcoBelimed is targeting an EBIT margin of 10% in the medium term. Metall Zug will retain a 33% stake in SteelcoBelimed and continue to invest during the integration phase to participate in the planned value creation in the future. Metall Zug will report on the business performance of SteelcoBelimed as part of its financial reporting on a half-year basis.

About the Metall Zug Group
Metall Zug is a group of industrial companies headquartered in Zug. The Group has around 1,000 employees and comprises three Business Units:

• Medical Devices (Haag-Streit Group)
• Technologycluster & Infrastructure (Tech Cluster Zug AG, Urban Assets Zug AG)
• Others (Gehrig Group AG and Metall Zug)

In addition, Metall Zug holds anchor participations in the listed V-ZUG Holding AG (30%), the listed Komax Holding AG (25%) and SteelcoBelimed AG (33%), a joint venture with Miele. The holding company Metall Zug AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich (type B registered shares: securities number 3982108, ticker symbol METN).

Legal Notes
The expectations expressed in this announcement are based on assumptions. Actual results may vary from those anticipated. This announcement is published in German and English. The German version is binding. Metall Zug AG processes personal data in accordance with its privacy statement available under: https://www.metallzug.ch/en/datenschutzerklaerung.

or: investorrelations@metallzug.ch 

This announcement is available at https://www.metallzug.ch/en/medien/medienmitteilungen