Atlas Copco (China) Investment Co. Ltd. has acquired 75 percent of Shandong Rock Drilling Tools, a leading Chinese supplier of rock drilling tools. The acquisition strengthens Atlas Copco’s position in the local market in mining and construction consumables.
Shandong Rock Drilling Tools had 2012 sales of 393 million Chinese yuan renminbi (about U.S. $63 million). The company, located in the Shandong province in eastern China, is part of the privately held Shandong Sanshan Group, which also owns an adjacent steel mill. Atlas Copco will acquire close to 25 percent of the steel mill.
“This acquisition provides us with a strong base to further strengthen our position in China,” said Bob Fassi, business area president, Atlas Copco Mining and Rock Excavation Technique. “We see a long-term opportunity to grow in products for top hammer drilling. The agreement will give us new inroads into extending our business.”
Regulatory approvals have already been received for the acquisition. The steel mill investment is expected to be approved by local authorities shortly. The acquired company will be part of Atlas Copco’s Rock Drilling Tools division.
Atlas Copco is based in Stockholm, Sweden.