After leading one of the cornerstones of rural Manitoba's economy for the last 100 years, the owners of Loewen are turning the next century over to a Danish behemoth.
After a couple of years of declining sales and several rounds of layoffs, the Steinbach-based manufacturer of doors and windows has been sold to VKR Holding in Denmark for an undisclosed amount.
"The Loewen shareholders believe that VKR will bring the resources, capabilities and character to ensure the future success of Loewen in the marketplace while maintaining respect for all of its stakeholders as well as for the culture of the staff and community," said Clyde Loewen, a spokesman for the family.
Loewen's primary business is building windows and doors for the luxury housing market in the U.S., but it also has steady sales in its home country.
Loewen has about 700 people on its payroll in Steinbach, located about an hour southeast of Winnipeg, but that's less than half of the 1,600 it employed before the economic downturn.
VKR employs more than 1,400 people in more than 40 countries throughout its group of companies, which produce roof windows, vertical windows and thermal solar-energy products.
VKR CEO Leif Jensen said the acquisition fits in with VKR Holding's strategy.
"The Canadian and American markets have been affected by severe decline in the last three years," added Jensen. "The markets are slowly stabilizing, and we see great potential in Loewen, not least because the company holds a strong niche position in the high-end segment of the market."
from Western Investor, September 2010
