The Finnish drives-maker Vacon and the German motor manufacturer VEM have signed a co-operation agreement to market and sell each other`s products around the world. VEM will sell Vacon`s NX frequency converters through its global sales network, while Vacon will use VEM motors in its own projects.

The agreement builds on an informal arrangement which the two companies have had for several years, and a close co-operation in the Finnish market through VEM`s Esmac subsidiary.

VEM`s chief executive Jürgen Sander sees the new arrangement as "a good way for both parties to further improve their attractiveness on the market".

The two companies are well matched in terms of size. Last year VEM recorded a turnover of €100.5m, while Vacon`s sales amounted to €97.5m.