Romi transfers Romicron® operation to Kennametal

Strategy aims to reinforce core business on the production of machine tools, plastic processing machines, castings and machined castings

Indústrias Romi S.A. concluded, on May 7, 2009, the Closing of the agreement of transference of technology and manufacturing line operation of Romicron® products to Kennametal Inc., a global leader in the cutting tool sector and provider of engineered components used in many manufacturing processes.

Romicron is a high precision boring system patented by Romi, used in machine tools, like machine centers, in industries with needs of high precision in the manufacturing of metal parts, such as aerospace, automotive, defense and capital goods sectors. With Romicron® it is possible to machine holes with minimal adjustment of 1 micrometer and assured repeatability.

"We have decided to transfer the Romicron® technology and product line to Kennametal as part of the strategy to reinforce its activities on the company core business, that is, to produce and provide the best technical solutions in machine tools, plastic processing machines, castings and machined castings", says Romi's President and CEO, Livaldo Aguiar dos Santos, emphasizing that the business will boost the development and increase the Romicron® global sales. "Although its high advanced technology and its unique characteristics on the market, Romicron® did not fully fit in our products portfolio, because it requires a worldwide distribution stream specific for the tooling business, elements that are usual and consolidated at Kennametal." additionally says Romi´s officer.

By the agreement, Romi will transfer to Kennametal all the design, drawings and know-how, including several Brazilian and international patents, as well as machines, equipment, parts, inventory and staff, related to Romicron® operations. The Romicron® production will be continued at Kennametal's premises in Indaiatuba (SP/Brazil), that absorbed all the 62 employees involved in the product manufacturing at Romi.

Romicron® business represented 1,09 % of the Romi's consolidated net operating revenue for 2008 calendar.