Rocla and Swisslog Form Strategic Alliance in Automated Guided Vehicles

    JARVENPAA, Finland & AARAU, Switzerland--June 20, 2001--Rocla Oyj of Finland, one of the world's leading warehouse trucks and automated guided vehicles (AGV) suppliers, and Swisslog Management Holding AG of Switzerland, a leading global provider of supply chain solutions, have formed a strategic alliance for automated guided vehicles (AGV) systems. As a result of the agreement, Rocla's AGV subsidiary Rocla Robotruck Oy acquires Transnorm AGV AB, a subsidiary of the Swisslog Group, in Partille, Sweden. After the transaction, Swisslog will own a 30% stake of the combined Rocla Robotruck AGV-business. Swisslog will continue to sell AGV-systems and to offer customer support for its existing and future AGV clients world-wide. The alliance puts Rocla Robotruck in a globally leading position for AGV-systems. Swisslog and Rocla not only combine their AGV offering but will also cooperate in other business areas. The net sales of Transnorm AGV AB in 2000 were approx. $8.5 million and those of Rocla Robotruck $9.4 million. The agreement takes effect retroactively as of 1 May 2001.
    Swisslog's and Rocla's new AGV company offers a complementary set of products and applications to its customers. Rocla contributes its world leadership in heavy duty AGV-systems, among others for the paper industry to the alliance. Swisslog adds its many years of experience as a supplier of AGV-systems to a variety of industries and its world-wide customer support network. Additional synergies in truck development and mechanical production are provided by Rocla's position as one of Europe's leading suppliers of warehouse trucks. A significant boost in launching new AGV technology is expected due to the combination of the R&D capabilities. Furthermore, the cooperation in the AGV assembly should lead to substantial benefits from economies of scale. Rocla Robotruck with a combined workforce of over 120 will continue to be Swisslog's preferred AGV supplier. Swisslog's AGV-applications for the health care industry, which are developed in Germany and France, are excluded from the alliance and will remain part of Swisslog.

    Reaching for global number one

    The fragmented nature of the competition provides the Swisslog Rocla partnership with favorable development perspectives. "The strategic alliance creates a very strong player on the world market for AGVs", says Petri Alava, Managing Director of Rocla Robotruck. "Rocla's and Swisslog's AGV-activities complement one another. The pooling of resources strengthens the knowledge base considerably and improves the overall resources for global customer support. Rocla has announced its goal to become the world's leading supplier of AGV-systems with at least 10% market share of the estimated $335 million global market and this move is a big step in that direction", Alava says.

    World-wide partnership

    On a global level, Rocla and Swisslog deepen their strategic cooperation for different supply chain needs. According to Juhani Anttila, CEO of Swisslog: "AGVs continue to be part of Swisslog's core offerings. With our combined activities we can leverage the potential in R&D, assembling, sales and customer support. This will make us significantly more competitive in the world market. Besides the many synergies we will achieve by combining our group level. Rocla and Swisslog have complementary expertise in their specific markets and a strong customer base which enables us to offer our extended product portfolio to each other's clients." Adds Kari Blomberg, Managing Director of the mother company Rocla: "The solid expertise of warehouse trucks and AGVs represented by Rocla and the advanced supply chain expertise and global operations of Swisslog give a significant boost to the market position and competence of the new alliance, which is providing supply chain solutions for advanced short-haulage logistics equipment. As a Group, Rocla will draw significant benefits from this strategic alliance with a leading world player in supply chain solutions."

    Rocla Oyj

    Rocla is the fifth biggest manufacturer of warehouse trucks in Europe and one of the world's leading suppliers of automated guided vehicles. Rocla Oyj was listed on the Helsinki Stock Exchange in 1997. Consolidated net sales have grown steadily at faster than average pace for the trade during the entire latter part of the 1990s. Net sales in 2000 were $59 million. Exports and international operations accounted for over 70% of this amount. Rocla incorporated its AGV-operations into a wholly owned subsidiary, Rocla Robotruck Oy, at the beginning of 2001.

    Swisslog Holding AG

    Swisslog is a global provider of integrated supply chain solutions that cover the entire value creation process from procurement and production to delivery. Swisslog's solutions optimize the intra-and inter-company flow of information and materials, significantly increasing its customers' flexibility, reaction capability, productivity and quality of service while minimizing logistics costs and tied-up capital. Based in Buchs/Aarau, Switzerland, Swisslog currently employs 3,700 staff in 25 countries around the globe. During 2000, Swisslog increased its sales by 28% to $506 million (CHF 925.0 million) and its EBITA by 44.6% to $40 million (CHF 72.6 million). The Group's parent company, Swisslog Holding AG, is listed on SWX Swiss Exchange (Security Number: 1 232 462, Telekurs: SLOG Reuters: SGLOGn.S).