27.02.2013 / Manganese steel foundry in China
Metso is continuing to strengthen its presence in China by acquiring a manganese steel foundry (JX) in Quzhou City, Zheijang Province some 400 km Southwest of Shanghai. The acquisition of JX will improve Metso's capabilities to supply wear parts to their mining and construction industry customers in China and other markets in Asia Pacific.
"We already have the most extensive services hub and distribution network in our industry. 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. We intend to use the acquired site as platform to further develop our services capabilities in China", says João Ney Colagrossi, President, Services business line, Mining and Construction, Metso.
The 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 as of closing. The value of the acquisition will not be disclosed. The transaction is subject to the relevant regulatory approvals, which are expected in the next few months.
Metso currently has five foundries and an extensive network of external casting suppliers serving the mining and construction industries. The foundries are located in Ahmedabad, India; Isithebe, South Africa; Prerov, Czech Republic; Sorocaba, Brazil and Tampere, Finland. JX has, until now, been a supplier to Metso.
