Metso bolsters China presence through manganese steel foundry acquisition

6934 Metso has increased its presence in China by acquiring a manganese steel foundry (JX) in Quzhou City, around 400km Southwest of Shanghai.

"The acquisitions of JX and 6935 Shaorui Heavy Industries, and the joint venture with 269 LiuGong Group Corporation announced last November, significantly strengthen our supply capabilities for mining and construction industries in China,” said Andrew Benko, president, mining and construction, Metso. “Metso now has a complete range of capital equipment and wear parts covering a wide range of customer requirements. By acquiring a new steel foundry in China, we are able to better serve the needs of our Chinese customers.”

The latest Chinese deal secured by the Finnish mining and construction equipment giants covers the acquisition of assets of Quzhou Juxin Machinery and Quzhou Chixin Machinery from the current owner and his associates. The acquired assets and around 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. Its foundries are located in Ahmedabad, India; Isithebe, South Africa; Prerov, Czech Republic; Sorocaba, Brazil and Tampere, Finland. JX had, until now, been a supplier to Metso.

The year 2013 marks Metso's 80-year anniversary in China. The company's first contract from China, a paper machine delivery, was signed in 1933.