Electro Canada acquisition (North American operations)
The purchase of the business of Electro Canada Limited and the shares of Electro Canada SA de CV and Electro USA Inc. The acquisition included a head office in Toronto, Canada, a wiring harness factory in Nogales, Mexico, and a sales office in Tucson, USA. The PKC Group incorporated a new subsidiary, PKC Group Canada Inc., that continued Electro Canada's operations in Canada.
Electro Canada Limited was a private company with over 40 years' experience in the manufacture of wiring harnesses for vehicles and electrical equipment. Electro Canada companies were owned by the same group of owners, although they were not consolidated into a single group. At the time the companies employed about 450 people. In 2005 Electro Canada Companies' net sales totalled EUR 22 million and earnings before interest and tax were EUR 1.5 million.
The purchased business has been included in PKC's consolidated financial statements as of August 1, 2006.
The acquired companies current names are PKC Group Canada Inc., PKC Group USA Inc. and PKC Group Mexico SA de CV.
Establishment of Pskov, Russia operations
Establishment of a new wiring harness factory in Pskov, Russia, near the Estonian border. The new subsidiary, OOO PKC Group Pskov, will operate in leased premises and its purpose is to serve Central European and Russian markets.
Electronics subgroup formation continues
Transfer of ownership of OOO Elektromeka from Carhatec Oy and TKV-sarjat Oy to PKC Electronics Oy by share purchase on February 14, 2006.