Atlas Copco acquires Chinese drill consumables maker
05 March 2013
Atlas Copco has acquired a 75% stake in Shandong Rock Drilling Tools, a manufacturer of drill bits and other rock drilling consumables based near Yanggu in China’s Shandong Province. The company markets its products under the Sanshan brand.
The value of the acquisition was not disclosed, but Atlas Copco said Shandong Rock Drilling Tools had of CNY 393 million (US$ 63 million) last year and employs 687 people. The company is part of the privately held Shandong Sanshan Group, which also owns an adjacent steel mill. Atlas Copco will also acquire close to 25% of the steel mill.
“We are very pleased with this acquisition as it provides us with a strong base to further strengthen our position in China,” said Bob Fassl, business area president for Atlas Copco Mining and Rock Excavation Technique. “We see a long-term opportunity to grow in products for top hammer drilling. The agreement will give us new inroads into extending our business.”
Atlas Copco said all the necessary regulatory approvals for the acquisition of Shandong Rock Drilling Tools had been received, and that the steel mill investment was expected to be shortly approved by local authorities. The acquired company will be part of Atlas Copco’s Rock Drilling Tools division.