Sandvik AB, Stockholm, Sweden, has signed an agreement to acquire 67% of Chuzhou Yongpu Carbide Tools Co., Ltd, a solid round tools company headquartered in Chuzhou, China. It was added that Sandvik also has an option to buy the remaining shares in three years.
Chuzhou Yongpu Carbide Tools’ capabilities include the full solid round tools manufacturing value chain, offering blanks, cutting tools, reconditioning and coating services. Its main customers are local and international OEMs operating in China.
“The acquisition of Chuzhou Yongpu Carbide Tools Co., Ltd is part of our strategy for our machining solutions business to increase our market share and take a leading position in solid round tools, and at the same time expand further in the Asian market,” stated Stefan Widing, president and CEO of Sandvik. “We are looking forward to welcoming Chuzhou Yongpu Carbide Tools Co., Ltd to the Sandvik Group.”
Chuzhou Yongpu Carbide Tools will continue to operate under its own brand, while continuing to develop its offering and grow its market share, particularly for cutting tools. The company will be reported in Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions.
Nadine Crauwels, president of Sandvik Machining Solutions, commented, “We have long-term strategic commitment to strengthen and develop our business. China is a fast-growing market for solid round tools, and the acquisition of Chuzhou Yongpu Carbide Tools Co., Ltd will further strengthen our presence and enhance our offer to customers in this important region. With its premium position and strong customer focus, Chuzhou Yongpu Carbide Tools Co., Ltd is a great fit for Sandvik Machining Solutions.”
Chuzhou Yongpu Carbide Tools has approximately 500 employees and reported revenues of SEK 400 million for the twelve-month period Q2 2020 to Q1 2021. The transaction is expected to close during the third quarter of 2021.