Mersen

Mersen SA

Company type	Société anonyme
Traded as	Euronext: MRN
ISIN	FR0000039620
Industry	Carbon-based components
Founded	1937 (1937)
Headquarters	La Défense , France
Area served	Worldwide
Key people	Luc Themelin (Chairman and CEO)
Revenue	€739 million (2013)
Operating income	€9.3 million (2013)
Net income	€(28.6) million (2013)
Website	www.mersen.com

Mersen (known as Carbone Lorraine until 2010) is an international manufacturing company with French origins, which is a global expert in electrical specialties and graphite-based materials. Headquartered in Paris' La Défense, France, it has a global presence.

History

Beginnings

Carbone Lorraine SA was born in 1937 from the merger of two companies, Compagnie Générale Electrique de Nancy and Compagnie Lorraine de Charbons pour l'Electricité. The first, founded in 1891, manufactured electric motors, lamps, dynamos, generators and lighting equipment. The second, founded in 1892, was a pioneer in producing artificial graphite from amorphous carbon, manufacturing graphite brushes for electric motors. At the time of the merger, both companies had developed a strong international sales network.

The World War II, at first, accelerated the growth of the company, but then it was placed under the control of the Nazi military industry. At the end of the armed conflict, it was able to rebuild its operations and facilities quickly, consolidating its presence in Western Europe and the Americas.

Groupe Pechiney steps in

During the 80s, Groupe Pechiney acquired a majority stake (61 percent) in Carbone Lorraine and financed an expansion and diversification process. The company expanded beyond its core production of graphite brushes, starting to manufacture carbon–carbon disc brakes for racing motorcycles and developing specific components for nuclear and aerospace industries. Also, it purchased a number of rivals, as Ferraz, one of the largest manufacturers of fuses and electrical protection systems. Then, it took control of Stackpole, which allowed it settle as a world leader in the production of graphite brushes.

New focus

The early 1990s recession severely affected the company, especially in its main market, Europe. The difficult situation led to Groupe Pechiney to seek divest of Carbone Lorraine's stock. In 1995, Pechiney sold a 21 percent stake to Paribas Affaires Industrielles. Carbone Lorraine was starting the recovery process and in the following years strengthened its electrical components sector by purchasing UGIMAG and Dietrich of Germany, which converted it in the European leader in electric motor's brush holders. During the next years, the expansion of the company continued, with the acquisitions of ferrite magnet divisions of Philips and ITT-Automotive and the American corrosion resistant materials' manufacturer Autocosmos. At the same time, Paribas sold its shares and the company became independent, with a large percentage of its stock on free float. It expanded the size of its operations in the United States with the acquisition of Gould Electronics' electrical fuses division (1999).

Later developments

At the beginning of the 21st century, the company strengthened its presence in the Far East with the acquisition of the Korean company Tongkook's ferrite magnet division and, in 2008, the Chinese companies Xianda and a 51 percent of Mingrong Electrical Protection (MEP). Its first factory in China, a key BRIC market, was inaugurated in 2007.

In 2005 the company started to supply components for solar and wind energy.

In January 2008, the company purchased a majority stake (60 percent) in the rigid graphite manufacturer Calcarb. In April 2008, Carbone Lorraine sold to Faiveley its motorcycle and rail braking division. In May 2009, it announced the selling of the brushes and brushholders for automobile and household electrical appliances division to the American investment fund MidMark Capital.

In January 2010, Calcarb became a fully owned subsidiary of Carbone Lorraine. In April 2010, a shareholders' meeting approved the rename of the company to Mersen. In May 2011, it acquired the remaining shares of MEP. In January 2012, the group acquires Eldre, the largest worldwide pure player in laminated busbars.

Products and Services

Mersen is a global expert in materials and equipment for extreme environments and for the safety and reliability of electrical equipment. Its business activities are built around two areas of expertise:

Advanced Materials and Technologies

It specializes in the usage of graphite and other high-performance materials in highly demanding industrial environments, including high-temperature applications, and anticorrosion equipment for the pharmaceutical and chemical industries and high-energy braking.

Electrical Components and Technologies

It markets a range of electrical solutions and services for motors and generators, enhancing the safety and performance of electrical installations and power electronics. This includes brushes and brush-holders, contacts for current collection, slip-ring assemblies and signal transmissions systems. It also designs and distributes solutions for electrical protection, current quality enhancement and the safety of electrical equipment and installations (industrial fuses and fuse-holders, switches cutting off very high-power supplies, cooling devices to boost the performance of power semiconductors, busbars, fault indicators for medium-voltage distribution lines, third-rail current collections for mass-transit systems).

Markets

Mersen serves 5 main markets: Energy, Electronics, Chemicals and pharmaceuticals, Transportation and Process Industries.

Energy

Mersen markets solutions that are used in power generation and distribution systems: Solar energy: Mersen provides manufacturers of silicon (principal component of photovoltaic cells) with ultra-pure graphite equipment. It also provides silicon ingot manufacturers with sophisticated equipment for high-temperature fusing kilns. Wind energy: Mersen provides the sector with original-equipment and replacement signal transmission systems, brushes and brushholders, fuses and cooling devices. Conventional energies: approved by the principal turbogenerator manufacturers, the Group’s systems and components are used in thermal power plants.

Electronics

Mersen is active in the early stages in the production of semiconductors through the preparation of the ultra-pure graphite required for their manufacture. Mersen’s solutions for power electronics include industrial fuses and cooling devices.

Chemicals and pharmaceuticals

The Group designs customized graphite and reactive metal equipment that can withstand high temperatures and corrosive fluids, such as reactors and heat exchangers.

Transportation

Mersen provides electrical protection (cooling devices, fuses and contactors) and current transmission equipment (third-rail shoes, pantograph strips, brushes for motors, etc.) for rail infrastructure (trams, subways and train) and rolling stock. Mersen is also present in the aerospace industry for which it designs composite material components and electrical command systems.

Process industries

Mersen manufactures brushes, industrial fuses, contactors and graphite components for production lines.