Sandvik acquires Chinese crushing and screening supplier
By Helen Wright29 December 2010
Engineering group Sandvik Mining and Construction has deepened its footprint as a supplier of crushing and screening solutions to the Chinese and international markets with the acquisition of an 80% equity stake in Shanghai Jianshe Luqiao Machinery (SJL).
SJL has two manufacturing facilities in Shanghai and sales and service distribution networks in most Chinese provinces as well as several countries outside China.
President of Sandvik Mining and Construction Lars Josefsson said the deal would add crushing and screening equipment for new customer segments in China and abroad.
"SJL is well positioned in the rapidly expanding crushing and screening market in China and has modern manufacturing facilities, competitive and cost-effective products and a well-developed distribution network. Combined with Sandvik's global capabilities, this will allow us to broaden and further develop our crushing and screening business into new markets," Mr Josefsson said.
Sandvik did not disclose the value of the acquisition but said it expected the deal to be completed within six to nine months.
SJL reported sales of around US$ 146 million in 2010, of which crushing and screening equipment for mining and construction applications accounted for 85%.
"SJL profitability is low, but positive. The acquisition will initially have a slight dilutive effect on profit margin and return for Sandvik Mining and Construction," Sandvik said.