Pramac goes into liquidation

Italian-based genset manufacturer Pramac has gone into liquidation following a special meeting of shareholders on 23 May.

Shareholders rejected a restructuring/recapitalisation proposal from Pramac's board of directors and instead appointed a board of liquidators to oversee the liquidation process. Trading of the company's shares on the Italian stock market was suspended on the following day.

Pramac made a loss of €94.8 million on revenues of €222 million last year and IRN understands that the losses stem mainly from the performance of its Pramac Solar business in Switzerland.

Pramac is best known for its portable generators and lighting towers which are bought by rental companies, businesses and homeowners. It also owns Lifter, which makes material handling equipment such as pallet trucks and stacking units.

Last October, for example, it signed an agreement with Home Depot in the US to supply portable generators, a contract that Pramac valued at around US$35 million a year. In 2009 it agreed a six year deal with Hertz Equipment Rental Corp for the use of Pramac generators in HERC's Spanish business.

The company's Pramac Swiss operation - which is understood to be the loss making division - makes a range of micro wind turbines called ‘RevolutionAir' as well as ‘thin film' photovoltaic (solar) panels.

Pramac operates through 37 companies in 21 countries and employs more than 800 people. It has six manufacturing plants, one at its headquarters in Siena, Italy, and others in Spain, France, China, Switzerland and the US.