Metso is continuing to strengthen its presence in China by acquiring a manganese steel foundry – JX – in Quzhou City, Zheijang Province, some 400 km southwest of Shanghai. The company said that the acquisition of JX would help it improve its capabilities to supply wear parts to mining and construction industry customers in China and other markets in Asia Pacific. The move follows a joint venture set up in November 2012 with LiuGong, whereby the two companies formed a 50-50 partnership to develop a track mounted crushing and screening business in China. Late last year, Metso also acquired 75% of Shaorui Heavy Industries, which is one of the leading mid-market crushing and screening equipment producers in China.
The joint venture combined Metso’s knowledge in track-mounted crushing and screening and technology with LiuGong’s extensive distribution resources and manufacturing capabilities in China. Initially, the venture is covering the design and manufacture of localised versions of Metso’s Lokotrack 1000 series mobile crushers and screens. The products are being sold under a dual brand, Metso LiuGong. The joint venture company is also promoting Metso’s global track-mounted crushing and screening equipment in China. “The acquisitions of JX and Shaorui Heavy Industries Ltd and the joint venture with LiuGong Group Corp Ltd announced last November, significantly strengthen our supply capabilities for mining and construction industries in China. 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”, states Andrew Benko, President, Mining and Construction, Metso.
“We already have the most extensive services hub and distribution network in our industry. With this acquisition we will strengthen our manufacturing presence in China and further develop our services business. We will improve our capability to supply wear parts to our mining and construction customers close to their operations and increase the flexibility and resilience of our wear products supply chain. We intend to use the acquired site as platform to further develop our services capabilities in China”, says Joao Ney Colagrossi, President, Services Business Line, Mining and Construction, Metso.
The transaction covers the acquisition of assets of Quzhou Juxin Machinery and Quzhou Chixin Machinery from the current owner and his associates. The acquired assets and approximately 275 employees are expected to be transferred to Metso as of closing. 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 has, until now, been a supplier to Metso.