Voith says it is planning to acquire 70% of the shares of ELIN Motoren GmbH as it looks to strengthen its position in the market for electrical drive systems.

A corresponding purchase contract was signed on December 20, with closing of the transaction anticipated to occur at the beginning of the June quarter.

ELIN is a global high-tech company in the area of electric motors and generators and provides customised solutions for markets such as wind energy, plastic, tunnel construction and mining, oil and gas, plant engineering as well as power plants.

Dr Uwe Knotzer, President & CEO of Voith Turbo, said: “Voith is the technology leader in drive technology in many industries. The portfolio of ELIN Motoren is an excellent addition to our industrial drive solutions and supports our position as a technology-independent supplier of drive systems. With the 125 years of experience of ELIN Motoren, we will achieve a significant advantage for our customers in drivetrain electrification.”

ELIN manufactures electric motors and generators on large and small scale, as well as customised solutions for industrial applications, focusing on electric machinery, low- and medium-voltage motors and generators especially for wind energy as well as decentralised energy generation.

Wolfgang Landler, CEO of ELIN Motoren GmbH, said: “Like ELIN Motoren, Voith, as a long-standing and globally positioned expert in the drive technology sector, follows a digitalisation strategy for industrial applications.

“With the future collaboration between the companies, we will be able to offer our customers, especially in this sector, optimised, integrated concepts ranging from consulting, prototype development to production and service.”

ELIN employs around 900 people and generates a turnover of approximately €120 million ($133 million).