Atlas Copco (China) Investment Co. recently signed a contract to acquire Shanghai Bolaite Compressor Co., Ltd. The company has a turnover of approximately SEK 137 million (about U.S. $18.8 million) and 309 employees. The acquisition is expected to close within a month.

Bolaite, headquartered in Shanghai, China, manufactures and distributes piston compressors and oil-injected screw compressors below 450 kW, and dryers. Bolaite was established in 1999. It has over the years built up a solid sales and service organization, and has an extensive distributor network in China.

"The acquisition is in line with Atlas Copco's strategy to increase its production, sales and service presence in the growing Chinese market. Bolaite has a good brand reputation with its customer base," said Ronnie Leten, business area president, Atlas Copco Compressor Technique.

Bolaite will become part of Atlas Copco Compressor Technique's Industrial Air division. After the acquisition is completed, Atlas Copco will continue to distribute the products under the Bolaite brand.

China represents 6 percent of the Atlas Copco Group’s 2005 revenues of SEK 53 billion (about U.S. $7.2 billion), and is one third of its total Asian revenues.

China’s National Bureau of Statistics recently announced that secondary industry such as manufacturing, construction and mining is driving China’s economy. Atlas Copco reports an average 26 percent annual growth in China compared with a worldwide growth of 12 percent in the past three years.

Stockholm, Sweden-based Atlas Copco Group has more than 110 sales and service offices throughout China. In addition there are more than 200 distributors. The Group's eight production facilities are located in Wuxi (3), Liuzhou, Nanjing, Shenyang, Qingdao and Zhangjiakou.