Metso Minerals is increasing its Asia Pacific manufacturing footprint as it acquires a 75% stake in Chinese firm Sharorui Heavy Industries, a crushing and screening machinery manufacturer.
Located in Shaoguan in Guangdong Province, Shaorui is one of the leading mid-market crushing and screening equipment producers in China.
The ownership of Shaorui and approximately 330 employees have been transferred to Metso.
Metso now has an option to purchase the remaining 25 percent of the company in the future.
The value of the acquisition has not yet been disclosed.
"The acquisition is an important step for us and helps us gain deeper knowledge of the products and customers in the Chinese construction markets. Our aim is to better serve the needs of our Chinese customers by developing a market driven technology offering for China. This will be done by utilizing the technological know-how of both Shaorui and Metso to further enhance our product offering," Pekka Pohjoismäki, president for the crushing and screening business line, Mining and Construction, Metso stated.
Following the acquisition, Metso will have a wider product portfolio for penetrating into other emerging markets.
"Our recent actions in China, the acquisition of Shaorui Heavy Industries Ltd. and the joint venture with LiuGong Group Corp. Ltd., announced last November, significantly strengthen our supply capabilities for the Chinese construction industry," Pohjoismäki added.
2013 marks Metso's 80-year anniversary in China. The company's first contract from China, a paper machine delivery, was signed in 1933.
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