6/9/2014 11:48:00 AM
HEADLINES
Chinese Fastener Company Buying Nedschroef
Nedschroef Inks Baosteel Agreement
In March 2014, Chinese steelmaker Baosteel signed a cooperative agreement with Nedschroef Group to supply steel for Nedschroef’s high-end automotive fasteners, SteelOrbis reports.
“Currently, Baosteel is the only Chinese supplier of high-strength cold forging steel for the China-based production facilities of General Motors, Volkswagen and Nissan,” according to SteelOrbis.
Nedschroef is being sold to Chinese company Shanghai Prime Machinery.
Koninklijke Nedschroef Holding B.V.owners Glide Buy Out Partners and Parcom Capital – both EU-based venture capital companies – agreed with company management to sell the Dutch fastener manufacturer for EUR 325 million.
Gilde Buyout Partners purchased Nedschroef in 2007 for US$442.1 million, with Nedschroef management reportedly retaining a 15% interest in the company.
PMC is reportedly buying Nedschroef to gain “strategic entry into the high-end automotive fasteners business.”
“PMC will build on Nedschroef’s intimate, longstanding relationships with leading OEM car manufacturers and suppliers around the globe and will gain a world class platform to further grow the company’s fasteners division,” the company stated in a press release.
“PMC is committed to backing Nedschroef’s global expansion strategy.”
Nedschroef’s headquarters will remain in the Netherlands and all current production facilities will remain open, the press release stated. Nedschroef has 1,500 employees in 14 countries.
Founded in 1894 by Henrik van Thiel, Nedschroef manufactures fasteners, cold-heading machinery and tooling for the automotive sector. The company was owned and managed by members of the Van Thiel family until 1987, when it was listed on the Amsterdam Stock Exhange.
After completion of the transaction, PMC and Nedschroef will have combined fastener sales of over EUR 600 million.
“With the addition of Nedschroef, its excellent people, the technological expertise and the relationships with the major car manufacturers in Europe, we will be able to make a step change in our fasteners business,” stated PMC CEO Zhiyan Zhou. “We will leverage their cutting edge expertise and Nedschroef will immediately benefit from our strong Asian footprint. This is very much a win-win situation.”
The press release framed the deal as the two companies “joining forces” and emphasized that Nedschroef will continue to be led by CEO Mathias Hüttenrauch and his executive team.
“Building on centuries of experience, craftsmanship and a tradition of quality, I am convinced that with this important new step in Nedschroef’s evolution we will be able to accelerate our global expansion program and take full advantage of the tremendous growth opportunities in Asia and elsewhere in the world,” Hüttenrauch stated.
Shanghai-based PMC designs, manufactures and exports machinery parts and components, including high strength fasteners, turbine blades, bearings, cutting tools and general machinery. It supplies to power plants, railway transportation, automotive and aerospace industries. PMC generated EUR 400 million in revenue during 2013.
PMC is a 49.6% controlled subsidiary of Shanghai Electric Group Corporation (SEC) and listed on the Hong Kong Stock Exchange.
SEC generated revenues of EUR 11 billion in 2013, with over 60,000 employees. ©2014 GlobalFastenerNews.com
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