Mersen Completes Full Acquisition of Fusetech to Ramp up Fuse Production
Mersen acquires the Hager Group’s stake in Fusetech and plans to optimize fuse production in Europe.
Mersen is a French international company that operates within two key business segments: Advanced Materials and Electrical Power. The company provides its customers with products and solutions encompassing electrical protection and control, anti-corrosion equipment, power management solutions, graphite specialties, and power transfer technologies.
The company announced that it has repurchased the stake held by the Hager Group in Hungarian company, Fusetech. This means that Mersen now has full control of the company. Mersen intends to optimize the efficiency of its fuse production lines for the European electric fuse market.
Fusetech is a market-leading fuse manufacturer and produces 6 million fuses annually. Image used courtesy of Fusetech
The Global Electric Fuse Market
According to a report on the global electric fuse market by MarketsAndMarkets, the size of the market is projected to grow from 3.5 billion in 2021 to 4.6 billion by 2026, at a compound annual growth rate (CAGR) of 5.8%. Although the arrival and ongoing prevalence of the coronavirus pandemic have slowed down the growth of the market, the worldwide drive toward electrification is acting as a key driver for its remobilization. Across the world, companies are pursuing carbon-neutral goals to mitigate environmental damage and slow the rapid progression of climate change.
The world’s demand for electric power is growing which likely to put stress on the existing power grid. The World Energy Council has estimated that at least 2,000 GW of new power generating capacity will be needed globally and a further 1,000 GW will be needed to replace outdated infrastructure in the next decade. Old power infrastructures that exist across the globe need to be updated. Electric fuses are primarily installed in medium-voltage substations for feeder and distribution line protection. This serves to prevent transient short circuits from triggering prolonged power outages and helps maintain supply chain continuity.
Mersen and Fusetech
For Mersen, the completion of the acquisition not only allows the company to ramp up fuse production but integrate a high-performance site to manufacture its upcoming products. Before completing the acquisition, Fusetech was a 50:50 joint venture between Mersen and Hager. Fusetech has accrued 20 years of experience in market-leading fuse production and produces 6 million fuses every year at its plant. The company is heralded as one of Europe’s top 3 manufacturers and employs around 350 employees.
CEO of Mersen, Luc Themelin. Image used courtesy of Mersen
In a news release from February, CEO of Mersen, Luc Themelin, said that he is: “delighted to see Mersen take this next important step in its plan to build and optimize its fuse product lines in Europe. Fusetech is an excellent industrial base for fuse production developed with our partner Hager Group, which the Group will use to ramp up its presence on the European market. The Fusetech teams already know Mersen and I look forward to welcoming them into the Group.”