"IMPULSE", Nov 2009 (GERMAN - translated extract)
Translated article extract about Krah AG:
....The time for purchases was great for the Arabs. The economic crises has let drop the valuation of German companies. And a lot of enterprises are prepared to sell with low prices. The reason for that often is pure emergency. Because the local banks are not willing to cooperate, the traditionally dressed sirs from the Middle East are highly-welcomed investors.
So it has happened to the Krah, a family company from the Westerwald. In the deepest province - somewhere between Limburg und Siegen - the company with about 100 employees produces machines for the manufacturing of plastic pipes in diameters up to 4m. The customers come from all around the world. IN 2007, the chief executive officer Alexander Krah got an order in the value of 6 million Euros. However, his house bank got cold feet and did not want to pre-finance the business. "This is out of your league said the banker to me", remembers Krah angrily. During that times the company only made a turnover of 10 million euros per year. He talked with a long-term business partner about that dilemma: Khaled Al Hashani, Shareholder of the pipe trader FPS in Kuwait. The born Saudi offered help immediately. During a meeting in relaxed atmosphere in the Interconti in Berchtesgaden they agreed fast. "The numbers weren´t important. It was crucial, that we had similar ideas for the future", said Krah.
FPS took over 33% of the Westerwälder, gave guarantees and financed the million order. Since then, the company could double its turnover to 20 million Euros, also because Al Hashani helps to acquire customers in the Middle East.
When Krahs history got public because of a television report, the telephone did not stop to ring. "More than 300 companies contacted us in order to find out where and how they can find a sheikh that would like to invest in their business."
The answer was: With patience...
Down - Left, beside the picture of Alexander and on top of your picture:
The machine manufacturer Krah AG from the Westerwald, founded in 1968, was stuck in the growth trap. Director Alexander Krah (r.) needed capital urgently in order to expand. But the banks denied. The internationally working middle sized company could not accept major orders for the production of the pipe manufacturing machines without "fresh money". The situation was dangerous.
the pipe trader FPS International Group, a long-term partner of Krah in the Middle East bought 33% of the company in 2008. The Saudi-arabic director of FPS, Khaled Al Hashani (l.) caught the chance to be shareholder. The turnover of Krah has doubled since the FPS became a shareholder.
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