SDVKY - Sandvik to acquire 67% stake in solid round tools company Chuzhou Yongpu Carbide

Sandvik (SDVKY) is acquiring 67% of China-based solid round tools company Chuzhou Yongpu Carbide Tools Co. Ltd.Sandvik also has a call option to buy the remaining part in three years.The company said Chuzhou Yongpu Carbide is mainly focused on global and local OEMs and connected suppliers operating in China. It makes full solid round tools value chain with an offer covering blanks, cutting tools, reconditioning and coating services.Chuzhou Yongpu Carbide will be reported within Sandvik Manufacturing and Machining Solutions division, Sandvik Coromant.Chuzhou Yongpu Carbide had revenues of about SEK400M for the 12-month period ending Q1 2021, an EBIT margin slightly dilutive to Sandvik Manufacturing and Machining Solutions. "The acquisition of Chuzhou Yongpu Carbide is part of our strategy for our machining solutions business to increase our market share and take a leading position in solid round tools, and at the same time expand further in the Asian market, " said Stefan Widing, President and CEO

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Sandvik to acquire 67% stake in solid round tools company Chuzhou Yongpu Carbide