Stockholm, Sweden-based Husqvarna signed an agreement to establish a joint venture with Hebei Jikai Industrial Co. in China, which will include Jikai’s operation in diamond tools.
Jikai is one of the largest producers in China of diamond tools for the construction industry, and has a leading position in the domestic market. Jikai manufactures a complete range of diamond tools including sintered blades, laser-welded and brazed blades, grinding cups and wheels, as well as drilling tools. Sales in 2005 amounted to CNY 170 million (approximately US $22 million), of which about half were in China and the rest in the international market.
The establishment of the joint venture is expected to be completed by the end of 2006. Husqvarna will own 80 percent of the company.
“The agreement with Jikai will give us a stronger presence in the fast-growing Chinese market and the rest of Asia,” said Anders Ströby, head of Husqvarna Construction Products. “Furthermore, it will complement our global product offering with additional diamond tools for the construction market. We also expect substantial synergies in manufacturing and purchasing.”
Husqvarna is a global producer of chainsaws, lawn mowers and other portable petrol-powered garden equipment such as trimmers and blowers. The group is also a leading producer in diamond tools and cutting equipment for the construction and stone industries.