EXEL Industries is to restructure its agricultural spraying business

Policy decisions in France are aimed at reducing or even eliminating the use of phytosanitary products in agriculture. The economic situation of companies in the EXEL Industries group that manufacture agricultural sprayers is coming under increasing pressure, particularly if they mainly sell to the French market. Our companies are currently having to consider some serious issues. However, thanks to new technology and precision spraying, the quantities of phytosanitary products used can be significantly reduced.

To improve our capacity for innovation, consolidate our expertise for the benefit of farmers, and increase the impact of our brands, EXEL Industries will restructure its agricultural spraying business.

Guerric Ballu, Chief Executive Officer, EXEL Industries group commented:

“To support the agro-ecological transition, we need to restructure to position ourselves as a major player in the future of farming. We will therefore consolidate our French operations at centers of excellence for research and production. This means closing the Noyers-Saint-Martin and Saint-Denis de l’Hôtel sites and transferring their operations to Beaurainville and Epernay respectively. These decisions have been endorsed by the Ballu family and the Board of Directors and are subject to compliance with the statutory procedures for employee consultation and government approval.

There is no doubt that these are big changes. Despite this, we remain a French family-owned business, committed more than ever to the human values that have guided our family for generations. Mindful of our commitments, throughout this transition we will make every effort to support the men and women whose continued commitment and expertise underpin our success.

Our farming customers face major agronomic, technical and regulatory changes. By restructuring, we will be able to supply them with spraying equipment that is increasingly accurate and easy to use, enabling them to reduce their environmental impact and remain in good financial health.”

Over time, we will streamline our commercial offering by reducing the number of brands. At the same time, we will focus more on global brands and market leaders to make them stronger, clearer and more distinctive. This strategy will strengthen and galvanize commercial partnerships with our established dealer network, for example through technical training, marketing campaigns, product demos and service solutions.

In Large-scale Crops, the Evrard, Matrot and Berthoud brands will offer a range of “Premium” products and services, while the Hardi and Tecnoma brands will be aimed at the core market.

The Narrow Vines segment will be dominated by the Tecnoma brand in high-clearance tractors and spraying, together with CMC and Berthoud’s spraying units. In Wide Vines and Arboriculture, Nicolas will target the “Premium” segment, alongside Berthoud’s products for Wide Vines and Hardi in the core market.

For customers and dealers of the Caruelle, Seguip, Thomas, Fischer and Loiseau brands, which will be progressively discontinued, we will offer high-performance “Product” and “Service” alternatives in line with the values developed by these historic brands.

At the end of the statutory period for employee consultation and government approval, the production, purchasing, product marketing and R&D activities will be consolidated within three types of Centers of Excellence specializing in Self-propelled Equipment, Large-scale Crops and Wine-growing & Arboriculture. The Beaurainville site will focus on the Self-propelled Equipment of the Hardi France group (Matrot, Evrard and Hardi), while the Fère-Champenoise site will specialize in the Self-propelled Equipment of the Berthoud and Tecnoma brands, as well as High-clearance Tractors. The Belleville and Norre Alslev (Denmark) sites will specialize in the development and production of Trailed and Mounted equipment for the Berthoud/Tecnoma and Hardi/Evrard brands respectively. Lastly, all Wine-growing & Arboriculture expertise as well as components and rotomolding will be concentrated at the Epernay Center of Excellence.

The industrial operations of the Noyers-Saint-Martin (Self-propelled, Matrot), Saint-Denis de l’Hôtel (Wine-growing & Arboriculture, Nicolas) and Lleida (Wine-growing & Arboriculture, Hardi group) sites will gradually be transferred to the Group’s Centers of Industrial Excellence.

This consolidation will stimulate innovation and the development of new ranges. Optimizing and professionalizing our industrial capacity at Centers of Excellence will help lower production costs while improving the quality of our sprayers.

Our Centers of Excellence will house our expertise in Self-propelled, Large-scale Crops and Wine-growing & Arboriculture. They will also develop new technologies in areas such as precision agriculture, electronics, robotization, confined spraying and artificial intelligence for detecting the crops to be treated.

EXEL Industries is able to react swiftly to changing market conditions. Our innovation and internationalization strategy is based on successful teams who can forge strong relationships with our customers and partners.

We intend to embrace the challenge of feeding a global population of 10 billion people by 2050, while ensuring that agriculture is healthy, competitive, productive and kind to the planet.

About EXEL Industries:

EXEL Industries’ core business is agricultural (world leader) and industrial spraying. The Group also competes in the consumer watering products market and in sugar beet harvesters (world leader). The goal of EXEL Industries is to expand in its markets through a policy of constant innovation and an international growth strategy. EXEL Industries employs approximately 3,758 people spread across 27 countries and five continents.

Euronext Paris, SRD Long only – compartment B (Mid Cap)

EnterNext© PEA-PME 150 index (Mnemo EXE / ISIN FR0004527638)

This press release is available in French and in English.

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