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The Timken Company, Canton, OH, intends to sell assets from two of its North American regional service centers to CoLinx. The sale of the Mississauga, Ontario (Canada), operations to CoLinx Canada ULC is effective May 1, 2002, and the Reno, Nevada, operations are being sold to CoLinx, LLC, effective June 1, 2002. The U.S. and Canadian CoLinx companies, which are part of a joint venture involving INA Holding Schaeffler KG, Rockwell Automation, The SKF Group, and Timken, provide web-based services and integrated logistics for premium-brand industrial manufacturers. Financial terms of the asset purchase agreement were not disclosed.
The sale allows Timken to increase its level of service to industrial distributors while benefiting from CoLinx' comprehensive warehousing and logistical capabilities. Specifically, savings and efficiencies will be realized by using pooled shipping lanes, aggregating shipping freight, and leveraging common operations. The asset purchase agreement includes the transfer of warehouse equipment and also provides employment within the CoLinx organization for current full-time Timken associates.
"Initial analysis conducted last year as part of the CoLinx project indicated that 85 percent of our shipping regions were common among the CoLinx founding members," noted Kari Groh, general manager - global logistics and customer service for Timken's industrial distribution business. "This provided compelling evidence for us to launch an initiative that would capitalize on synergies between our respective shipping and warehouse operations. We consider this to be a win-win in logistics -- just as it has been with our CoLinx e-business launch of PTplace.com in the U.S. and Canada."
"We are delighted to have the opportunity to serve Timken in its efforts to decrease costs and deliver product faster," said Don Louis, CEO of CoLinx. "This acquisition clearly increases the strength of the CoLinx shared services organization. CoLinx member manufacturers will immediately benefit from the transfer of outstanding people, proven quality systems, and significant shipment volume."
The Timken Company is an international manufacturer of highly engineered bearings, alloy and specialty steels and components, as well as related products and services. With operations in 24 countries, the company employs about 18,700 people worldwide and recorded 2001 sales of U.S. $2.4 billion.