Atlas Copco Buys Chinese Rock Drilling Tools Business
Atlas Copco (China) Investment Co,. Ltd. has acquired 75% of Shandong Rock Drilling Tools Co., Ltd., a Chinese supplier of rock drilling tools. The acquisition is intended to strengthen Atlas Copco’s position in the Chinese market in mining and construction consumables.
Shandong Rock Drilling Tools had sales in 2012 of approximately $63 million. Located in the Shandong province in eastern China, it is part of the privately held Shandong Sanshan Group, which also owns an adjacent steel mill. Atlas Copco will also acquire close to 25% of the steel mill.
“We are very pleased with this acquisition as it provides us with a strong base to further strengthen our position in China,” said Bob Fassl, 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.”
All needed regulatory approvals have been received for the acquisition of Shandong Rock Drilling Tools. The steel mill investment is expected to be approved by local authorities shortly. The acquired company will be part of Atlas Copco’s division Rock Drilling Tools.