Metso to acquire foundry in China
Construction and mining equipment manufacturer strengthening presence in Asia Pacific markets
METSO are continuing to strengthen their presence in China by acquiring a manganese steel foundry (JX) in Quzhou City, Zheijang Province, some 400km south-west of Shanghai.
The acquisition of JX will improve Metso’s capability to supply wear parts to their mining and construction industry customers in China and other markets in Asia Pacific.
‘The acquisitions of JX and Shaorui Heavy Industries Ltd, and the joint venture with LiuGong Group Corp. Ltd announced last November, significantly strengthen our supply capabilities for mining and construction industries in China,’ said Andrew Benko, Metso’s president of Mining and Construction.
‘We now have a complete range of capital equipment and wear parts covering a wide range of customer requirements. By acquiring a new steel foundry in China we are able to better serve the needs of our Chinese customers.’
João Ney Colagrossi, president of Metso’s Services business line, Mining and Construction, added: ‘With this acquisition we will strengthen our manufacturing presence in China and further develop our services business.
‘We will improve our capability to supply wear parts to our mining and construction customers close to their operations and increase the flexibility and resilience of our wear products supply chain.’
The JX transaction covers the acquisition of assets of Quzhou Juxin Machinery Co. Ltd and Quzhou Chixin Machinery Co. Ltd from the current owner and his associates.
The acquired assets and approximately 275 employees are expected to be transferred to Metso upon completion.
The value of the acquisition will not be disclosed and the transaction is subject to the relevant regulatory approvals, which are expected in the next few months.
