Following the acquisition of SinoCera Create-Tide, KEDA Industrial Group made another significant move in the ceramic machinery sector. On the evening of September 25, at the strategic cooperation signing banquet held in Maranello, Italy, KEDA Industrial Group officially signed a contract with F.D.S. Ettmar S.r.l. (hereinafter referred to as "FDS"), wherein KEDA Industrial Group will acquire a 70% stake in FDS!
The signing ceremony was attended by Cheng BIAN, Chairman of KEDA Industrial Group; Huojin GUAN, General Manager of DLT; Xiaodong LIU, General Manager of KEDA Europe; Jiang ZHENG, General Manager of KEDA Ceramic Machinery European Sales Region; Roberto Magnani, General Manager of ICF & Welko; Paolo Malagoli, Deputy General Manager of ICF & Welko; Matteo Gelmuzzi, General Manager of FDS; Marco Borsari, Sales Director of FDS, and others. Prominent figures from the ceramic industry, including Paolo Mongardi, Chairman of SACMI; Paola Ferrari, CEO of TecnoFerrari; Gian Paolo Crasta, General Manager of Acimac; Jianping HUANG, Chairman of Guangdong Wonderful Ceramics; Qikang ZHANG, Director of Monalisa Group; Hongjian FENG, Chairman of Tidiy Ceramics; Huicai LIANG, Deputy General Manager of Hongyu Ceramics; Dong CHEN, Executive Deputy General Manager of System (China) Technology; Xinliang LI, President of Ceramic Town Weekly, were present to witness the event.
It is worth noting that FDS possesses strong product and brand capabilities in the field of mold manufacturing. In various aspects such as business, talent, technology, supply chain, and marketing channels, FDS complements KEDA Industrial Group's overseas business, enabling mutual development and achieving a win-win situation.
Acquisition of a High-Quality Mold Enterprise to Consolidate the European Market Presence
FDS, a European ceramic tile mold manufacturing company established in 1992 in Sassuolo, the ceramic manufacturing hub and one of the most important ceramic production bases in Europe, located in Italy. FDS's business includes the research, development, manufacturing, and refurbishment of various ceramic press molds. Their product range covers mainstream ceramic tile mold models ranging from 30×60 (cm) to 60×180 (cm). Notably, FDS pioneered the world's first "isostatic pressing mold core", a groundbreaking invention that marked a significant milestone in the history of ceramic tile manufacturing.
Being an indispensable semi-consumable accessory in the ceramic tile production process, mold manufacturing itself is one of the value-added sections. FDS stands as a leading mold manufacturer in Europe, boasting distinct advantages in team expertise, technology, customer resources, and geographical location. The founding team possesses substantial managerial experience in core departments of major ceramic enterprises, wielding expertise in mold production, machinery maintenance, product design, and related technologies—a robust endorsement and support for FDS's product quality and research capabilities.
For downstream ceramic customers, mold costs represent a relatively small proportion of overall costs. Furthermore, there are fewer manufacturers who can customize molds of various types for ceramic factories. Most ceramic factories have strong financial capabilities and tend to establish long-term partnerships with mold manufacturers. To date, the management team at FDS has accumulated over 30 years of experience in serving ceramic customers. They have provided their services to customers spanning across more than 20 countries worldwide. The quality of their products and services has garnered recognition from several major Italian ceramic companies, including Victoria Plc and Florim Group. These achievements have resulted in the establishment of enduring and stable collaborative partnerships.
Additionally, the timely supply of mold products and maintenance services is crucial to ensuring production efficiency. Consequently, the business radius of mold services is typically significant. FDS, situated in the key ceramic production region of Sassuolo, Italy, is surrounded by numerous renowned ceramic machinery enterprises and ceramic factories. This location further contributes to the development of its ceramic customer network.
This acquisition aligns seamlessly with KEDA Industrial Group's strategic plans. Upon completion of the acquisition, it will provide substantial support for the KEDA Ceramic Machinery business team to further cultivate the European market, strengthen resource integration at the European base, and enhance KEDA Industrial Group's brand image and overall strength in Europe.
Mutual Empowerment and Collaborative Progress
As early as 2018, KEDA Industrial Group established a foothold in the European market by acquiring a leading high-precision manufacturer in Italy, ICF & Welko. ICF & Welko is situated in Maranello, which is known as a hub for high-precision manufacturing brands and is the headquarters of Ferrari S.p.A. and the Scuderia Ferrari Formula One racing team. It is approximately 6 kilometers away from FDS in Sassuolo.
In 2018, KEDA Industrial Group acquired 60% of ICF & Welko's equity, followed by the completion of the acquisition of the remaining 40% in 2021. The acquisition of FDS by KEDA Industrial Group further enhances the synergy and resource integration of their supply chain operations with ICF & Welko.
Regarding the expansion of downstream sales channels within the industrial chain, ICF & Welko primarily engages in the design, manufacturing, sales, and installation of industrial facilities and machinery for industries such as ceramics. This complements FDS's mold manufacturing business exceptionally well. Following the completion of the acquisition, both parties can benefit from shared sales channel resources through their collaborative business operations. For instance, ICF & Welko can leverage mold development and production to create opportunities for interaction with downstream ceramic customers, enhancing customer engagement and thereby increasing ICF & Welko's market share and driving performance growth.
On the other hand, FDS currently possesses advantages in terms of technology and customer resources. As the world's second-largest supplier of architectural ceramic machinery, KEDA Industrial Group has a comprehensive supply chain system for raw materials and component processing in its manufacturing base in China. Through their collaboration, FDS is expected to fully utilize KEDA's cost advantages in manufacturing, significantly reducing material costs and further enhancing the cost competitiveness and market position of their products.
Diversifying Ceramic Machinery Components and Accelerating Transformation into Architectural Ceramic Production Service Provider
In July 2023, KEDA Industrial Group acquired a 40% stake in SinoCera Create-Tide, a high-end ceramic pigment & glaze enterprise, in the ceramic machinery field. The acquisition of FDS's equity in this instance marks another milestone acquisition in the company's "Ten Billion Ceramic Machinery" strategy.
As a crucial component of the company's "Three Ten Billion" strategic plan, the "Ten Billion Ceramic Machinery" strategy will continue to guide KEDA Industrial Group's transformation from a machinery supplier into a comprehensive service provider. Specifically, KEDA Industrial Group plans to build upon its existing sales of ceramic machinery production lines and add components, consumables, services, and process outputs. The company will also continue to focus on the cross-domain applications of ceramic machinery, ultimately shaping a business structure composed of "60% ceramic machinery, 20% ceramic-related products such as components and consumables, and 20% machinery for cross-sector solution". This strategic approach aims to steadily advance the achievement of the Ten Billion Ceramic Machinery goal.
As a leader in the ceramic machinery industry, KEDA Industrial Group has accumulated significant advantages in terms of products, technology, channels, and resources, and these advantages continue to be harnessed as the strategic plan unfolds. Looking ahead, guided by KEDA's strategy of "Globalization, Informationization, Servitization and Youngization" as well as the "Three 10-Billion" strategic plan, business sectors such as building materials machinery, building materials, lithium-ion battery materials and machinery will continue to generate robust momentum, providing sustained impetus for KEDA Industrial Group's long-term development.
