Sandvik to acquire Asian manufacturer
Swedish firm set to complete purchase of Shanghai Jianshe Luqiao Machinery Co. Ltd
SANDVIK Mining and Construction have reached an agreement with the owners of Shanghai Jianshe Luqiao Machinery Co. Ltd (SJL) to acquire 80% of the equity interest in the Chinese company. The acquisition is expected to be completed within six to nine months, following customary regulatory approvals.
As one of the leading firms in the design and manufacture of crushing and screening equipment for the Chinese mining and construction industries, SJL generated sales of around SEK1 billion (£95.4 million) in 2010. The company also has a growing footprint in the international market for competitive and cost-effective crushing and screening solutions.
SJL have two manufacturing facilities in Shanghai in addition to sales and service distribution networks in many Chinese provinces and in several countries outside China.
‘This acquisition is in line with Sandvik’s long-term strategy of continued profitable growth and our aim is to become a leading supplier of crushing and screening solutions to the Chinese and international markets,’ commented Lars Josefsson, president of Sandvik Mining and Construction.
‘The acquisition also extends our customer offering by adding crushing and screening equipment for new, large customer segments in China and abroad, thus allowing the company to become a strong supplier in this fast-growing industry.’