Canada: Chinese CIMC buys craft brewing equipment supplier

Diversified Metal Engineering (DME), a Canadian company specialized in the design and production of craft brewing equipment and steel tanks for the beverage industry, which went into receivership at the end of last year (, 17.12.2018), was sold to CIMC Enric Tank & Process (CETP) from the Netherlands at an undisclosed price. CETP is a subsidiary of CIMC Enric Holdings, a Hong Kong Stock Exchange listed company, which in turn is a subsidiary of China International Marine ContainersCo (CIMC), a Chinese company principally engaged in the manufacture and sale of transportation equipment, such as containers, road transport vehicles and airport ground-handling equipment.

DME Process Systems will continue to manufacture both the DME and NSI brands out of the Charlotte town location in Canada. The purchase does not include the NSI plant in Abbotsford, Canada, which has proceeded through receivership, and had its inventory and other materials auctioned off last week. Many DME employees have already returned to work and the Charlotte town facility is already once again fully operational.

With this recent purchase, CIMC has continued its shopping tour in the brewing equipment and tank market, which started indirectly in 2007 with the purchase of 80% equity of Dutch company Burg Industries, a manufacturer of trailers and truck bodies, tanks and apparatus. In 2009, the beer fermentation tank business of Holvrieka, a Dutch tank manufacturer that was established in 1947 and that was part of Burg’s business in Europe, was transferred to CIMC Enric. In 2012 CIMC bought German Ziemann Group, a global producer of turnkey brewery systems and steel tanks for the beverage industry, out of receivership for EUR26.5 million and merged it with its Holvrieka business to become Ziemann Holvrieka.

In June 2016 Briggs Group (known as Briggs of Burton), a 276-year-old UK-based company engaged in the process engineering, manufacturing, and automation to the brewing, distilling, food, pharma, and biotech industries was bought for GBP 23 million (USD28.6 million) and added to the group.

DME is now the latest company in a row to complement CIMC’s growing brewing equipment business.

"Chinese enterprises need to absorb excellent resources from global brands through overseas M&A and build core strengths in branding, technology and talent rather than low-end manufacturing; upgrade technologies faster; and localize global operations," said Yu Jiamin, CIMC ENRIC's director for strategic development in an interview with China Daily after the purchase of Briggs in 2016. "We don't simply ship products or introduce technology, but acquire global advanced resources like management expertise, technology, talent and brands through M&A, to make the company efficient and effective in globalizing our business," Yu said.

 “We are very excited to be a part of this prestigious international group of companies,” says Marc de Jong, Managing Director of the new DME Process Systems, in a press statement on Twitter. “Their innovation, market presence, manufacturing locations and experience will further strengthen our already globally recognized brands.”

 “The DME Group brings us an experienced team as well as a great customer base, which allows us to further increase our presence in North America,” says Mr. Ko Brink, CEO of CETP. “Adding DME/NSI to our group brings two strong brands in the (craft) brewing industry that will highly contribute to our existing brand portfolio.”

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