Press Release
March 28, 2007
Industrifonden invests in expanding VICI Industri
Industrifonden is one of the institutions providing total financing of almost 50 million kronor for VICI Industri, a fast-expanding sub-contractor to the automotive industry. VICI, which recently booked a major order from Scania, will use the funds to increase production capacity at its factory in Skövde.
Skövde-based VICI is a specialist manufacturer of components for truck engines. VICI has recently booked new order worth a total of around one hundred million kronor for valve rock-er systems for Scania's truck engines. This will require a radical increase in VICI's produc-tion and the company expects to double its turnover during the coming years. VICI also ex-pects to be able to deliver similar engine parts to other truck manufacturers.
Apart from Industrifonden, which is providing both equity and loan capital, the other co-financiers include ALMI and Skaraborgs Provinsbank/Danske Bank. In all, VICI will receive total new capital of 50 million kronor.
VICI's main shareholder is the entrepreneur Thomas Fröjd:
"We are expanding while others are emigrating. By continuously trimming and improving production we can successfully compete against low-cost countries for business," he says. The capital injection will be used to install a new automated production line, and VICI could well need to hire more employees.
VICI, which is a member of Thomas Fröjd's wholly owned Fröjdia Group, had a turnover of some 80 million kronor in 2006, and has 35 employees.
"Swedish vehicle industry sub-contractors are in many cases world class enterprises, and VICI is no exception," says Sven Röjwall, investment manager at Industrifonden. "We are pleased to become associated in this way with the team behind VICI, and we see great poten-tial for them to achieve rapid and profitable growth."
Industrifonden already has several investments in the vehicle industry, including Prestando, Eff-Power, Pemectra Lasertech and, now, VICI Industri AB.