9/21/2011 7:14:00 AM
NEWS BRIEFS
Chinese Firm Plans Multi-Million Dollar Fastener Business Expansion
Shanghai Prime Machinery Co. Ltd. successfully bid for the 100% equity interest in the Bolt Factory and the Research Centre sold by Shanghai Electric Group (SEG) for a combined RMB 89.4 million (US$14.06 million).
Shanghai Prime will pay RMB 30.8 million (US$4.82m) for the bolt factory and RMB 58.6 million (US$9.18m) for the research facility.
SEG is a controlling shareholder of Shanghai Prime, holding approximately 47.18% equity interest. The Bolt Factory and the Research Centre are wholly-owned subsidiaries of SEG.
The Bolt Factory is one of the largest production bases of such high strength bolts for steel framework in China, manufacturing high strength hexagonal bolts, twisted shear type high strength bolts and truss bolts.
The Research Centre provides services of expertise and quality testing for fasteners and related equipment. It also engages in the production and manufacturing of licensed machinery, fasteners and related equipment.
The proposed acquisition aims to further enhance Shanghai Prime’s current fastener business and the development of its machinery components, as well as the other related fastener businesses.
The Bolt Factory will expand Shanghai Prime’s current product line of category 8.8 bolts up to category 10.9 or above high strength bolts, helping the company enter into high-grade fastener markets such as the coal mining machinery, boiler, bridge construction, steel framework, petrochemical, wind power, marine engineering, aviation and high-speed railway. ©2011 GlobalFastenerNews.com
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