The Emtelle Group, which manufactures blown fibre and ducted network solutions for telecommunications providers, has acquired Moore GmbH in Germany. The move forms part of a major €30 million investment by the firm into their manufacturing plants across Europe, which is needed to boost supply.
Last month we reported that demand for certain types of high capacity optical fibre cables was putting pressure on key European suppliers, which in some cases had resulted in delays to the delivery of new orders (here). In response to the demand, much of which is being caused by large orders from major broadband providers, manufacturers have been upgrading their capacity and one quick approach is to grow via acquisition.
Emtelle states that the deal, which will give them three central hubs (i.e. in the United Kingdom [Jedburgh and Hawick in Scotland], Scandinavia and Germany), should enhance the overall capacity of the group and secure supply to a rapidly expanding client base in continental Europe.
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Mads Høgfeldt, Group CEO of Emtelle, said:
“There is a natural synergy between our skillsets and product lines and it benefits our clients at the same time. The addition of manufacturing capability in the centre of the largest country in western Europe is a complementary expansion of our core Scandinavian and UK manufacturing capabilities.
This acquisition will ensure better and more local customer service to our rapidly developing customer base. As a combined group, we will be able to supply the increasing global demands for fibre by adding a full manufacturing facility to our current sales team in Germany, substantially increasing our presence in a market which offers the largest FTTP potential in Europe.
The addition of skilled staff from Moore GmbH means we will be able to support our many customers throughout Europe even more efficiently. Emtelle will bring to the deal world class manufacturing methods and processes, and its technology will further enhance the efforts and dedication of the local and loyal workforce.
The fibre market, including FTTX and FTTH, is vitally important to current and future businesses and households worldwide, and with over 35 years’ experience we are extremely well-positioned to offer the best possible solutions. The acquisition reflects our ambitions to grow and increase the range and flexibility of our offering and to drive improvements to our already excellent customer service day by day.”
Following the acquisition, Moore will immediately be renamed Emtelle GmbH. The facility will then be closed for a short period to introduce new machinery and new technology, and to broaden the product range and capacity to be more in line with the requirements of the German market. Emtelle hopes that the new investment will allow it to quadruple capacity in Germany by the end of 2018.
Training will also be given to approximately 30 existing employees to enable them to operate, enhance and maintain these new extrusion lines, which will manufacture ducts, microducts and sheathed tube bundles. The addition of the former Moore staff will increase the number of Emtelle employees to around 455 globally.
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