The Draghi government has applied the golden power by stopping the sale of the Lpe company to the Chinese group Shenzhen Investment. The Italian company specializes in the production of epitaxial reactors and exports 50% of its production to China: here are accounts and business
Draghi protects Italian semiconductors. For the first time, the government applies golden power by stopping the sale of the Milanese company LPE to the Chinese.
On March 31, the council of ministers used the veto to block the sale of 70% of the LPE to the Chinese company Shenzhen Investment Holdings Co.
The Italian government's decision comes at a time when the chip crisis is being felt all over the world.
Here are all the details on the accounts and business of the company Lpe Spa, which manufactures epitaxial reactors used in the production of chips. Since 2003, the Baranzate-based company has a Chinese branch, dedicated to technical and commercial assistance in China, the main market for the Lombard company (50% of revenues derive from exports to China).
THE APPLICATION OF GOLDEN POWER
During the meeting of the CDM of March 31st – reconstruct ministerial sources cited by the Agi agency – the Ministry of Economic Development, in agreement with the Dis, the Ministry of Defense and the Ministry of Foreign Affairs and International Cooperation proposed the exercise of special powers in the form of opposition to the purchase pursuant to art. 2, paragraph 6 of the decree-law n. 21/2012, which prevents the sale of the Italian company Lpe, active in the development of epitaxial reactors used for the production of semiconductors, to the purchaser of the Chinese company Shenzhen Investment Holdings Co which wanted to buy 70% of Lpe.
NO TO THE ACQUISITION BY SHENZEN INVESTMENT HOLDINGS
So for the first time the Draghi government vetoes a Chinese takeover by Shenzen investment holdings co.
AN ANTICINESE SHIELD
Il Sole 24 Ore stressed : “Only one other time, since 2012, had the government veto been exercised, for an operation by the French Altran in the field of defense. The debut of a real anti-Chinese shield (so far, especially on 5G, there had only been prescriptions) is consistent with the references made yesterday by Giorgetti in the hearing on the ministry's programmatic lines at the industry committees of the Chamber and Senate ".
THE POSITION OF MINISTER GIORGETTI
The Minister of Economic Development, Giancarlo Giorgetti (Lega), had announced, among other things, that the Mise is also evaluating the possibility of "extending the scope of application of the golden power" to relevant supply chains, "particularly exposed to competition Chinese".
SUPPORTED BY PRESIDENT DRAGHI
“I agree with Giorgetti, golden power is a government tool to avoid the sale of strategic assets to foreign powers, it must be used. Semi-conductor was a use of common sense in this situation. It is a strategic sector, there are others, ”Prime Minister Mario Draghi said last week at a press conference with reference to the use of golden power.
Draghi stressed that "the shortage of semiconductors forced many car manufacturers to slow down production last year so it has become a strategic sector".
Therefore Lpe Spa remains 100% Italian even if the company looks a lot to China.
WHAT LPE SPA DOES
Founded in 1972, Lpe SpA of Milan designs and manufactures epitaxial reactors and has 52 employees.
As the same company specifies, Lpe has oriented its R&D activity to the design of epitaxial reactors suitable for the power management / power saving sector.
HOW THE LPE REFERENCE SECTOR IS LOCATED IN THE SEMICONDUCTOR MARKET
The reference sector (power management) represents about 10% of the total semiconductor market.
d is expected to expand strongly for applications in related sectors such as renewable energy (photovoltaic inverters), for lighting, for smart grids, for railways and in particular in the automotive sector (hybrid and electric cars).
CHINA DOMINANT MARKET
The same company highlighted how the dominant market for Lpe is for Asia in particular China, a country in which Lpe has been present since the 1980s.
In fact, the Chinese market has absorbed 50% of sales and therefore continues to represent the main market.
With a share capital of 1,800.00 euros (equal to 6,931,164 shares), the company is owned by Fimesa Spa at 24.1%, Franco Giovanni Preti at 16%, Pier Giovanni Poggi at 11.3% and Beatrice Shuler Preti at 16%. the remaining 33% (equal to 360,000 ordinary shares) is divided into usufruct and bare ownership between Massimo Sordi, Monica Renata Sordi, Massimo Fabio Sordi, Elena Andreina Du Chene De Vere, Amalia Miraglia, Francesca Preti and Mario Preti.
The Chairman of the Board is Massimo Sordi while Franco Preti is the CEO.
In addition to chairing Lpe Spa, Sordi is president of General Medical Merate SpA, GMM (in Seriate, Bergamo and Cassano delle Murge, Bari), a company active in the production and distribution of medical radiology equipment. GMM is headed by other companies in the sector acquired in recent years such as MECALL Srl and MTSrl.
Massimo Sordi also holds the role of president of IMD China (part of the GMM Group) based in Beijing, China; of GMM India ;, of ETC Catania; of Lpe China, Shanghai; by Brickel SA.
He is also the CEO of Fimesa SpA, a service company and holding company based in Baranzate (Milan), which has a stake in Lpe Spa. Finally, Massimo Sordi is a member of the board of directors of TRIUM SA, a company with offices in Buenos Aires (Argentina ) operating in the real estate, agricultural and energy sectors.
The Lombard Lpe Spa recorded a turnover of 27,864,927 euros in 2019, almost halved compared to the 49,345,209 euros of 2018. In the financial statements at 31 December 2019, the company specified that the value of production has undergone a significant decrease compared to in the previous year, but still remaining higher than the historical average performance of the company.
Profit also drops to € 6,810,483 (against € 13,719,694 in 2018). The costs of production amounted to 4,356,916 euros.
The company boasts a total of tangible fixed assets worth € 553,928, and a total debt of € 6,442,355.
EQUITY INVESTMENTS IN COMPANIES CONTROLLED BY LPE SPA
As stated in the company's financial statements, on December 19, 2003, the Chinese company Lpe Shanghai International Trading Co. limited was established, based in Shanghai, of which Lpe Spa owns the entire capital (200,000 dollars).
Furthermore, on 11 December 2019 Lpe acquired 100% of the capital of the company Pilegrowth Srl, of which it was previously a 20% shareholder, for an amount of 40,000 euros.
OTHER EQUITY INVESTMENTS
Finally, the Lombard company then owns equity investments in the capital of startup companies, with activities complementary to that of Lpe.
These include: Anvil Semiconductors Limited, Ascatron AB, Kubo's (a spinoff of the aforementioned Anvil) and the Swedish Kiselkarbid AB. The latter is developing an innovative technology for the production of SiC substrates.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/lpe-ecco-cosa-fa-con-la-cina-la-societa-milanese-bloccata-da-draghi/ on Mon, 12 Apr 2021 09:23:02 +0000.