Swedish mining engineering company Sandvik is acquiring a 67pc stake in Chuzhou Yongpu Carbide Tools, a Chinese solid round tools company.
Chuzhou Yongpu provides manufacturing solid round tools as well as blanks, cutting tools, and reconditioning and coating services to original equipment manufacturers.
The deal is expected to close within the third quarter of this year with the option for Sandvik to acquire the remaining stake in the company over the next three years. Chuzhou Yongpu will still operate under its personal brand and its operations will be reported under Sandvik Coromant, a group within Sandvik Manufacturing and Machining Solutions.
Stefan Widing, Sandvik’s president and chief executive officer stated that this acquisition will aid in the company’s strategy to increase its market share and expand in the Asian market.
Chuzhou Yongpu Carbide Tools currently has a workforce of about 500 persons and recorded SEK 400mn ($46mn) in total revenue between Q2 2020 and Q1 2021.