LiqTech International Inc has acquired Danish plastics manufacturer BS Plastic A/S.
The acquisition will allow LiqTech to in-source certain components of its proprietary ceramic silicon carbide water filtration systems for closed loop marine scrubber applications, which the company expects will result in enhanced profitability through improvement to its go forward gross margins.
BS Plastic was founded in 1958 as a provider of machined and welded plastic parts and is currently a supplier of plastic components to LiqTech. Recently, BS Plastic has focused on parts for the prepress, UV and aquaculture market segments.
“The acquisition of BS Plastic advances one of the key components to the margin optimization program the company laid out at the beginning of this year – the in-sourcing of certain manufacturing activities,” said Sune Mathiesen, CEO of LiqTech International. “By bringing the manufacturing of certain plastic tanks and machined plastics products for our water filtration systems in-house, we expect to save upwards of US$1 million annually based on our current production levels, with more significant savings in the years to come as volumes increase.”