Lincoln Electric acquires Chinese company
Lincoln Electric's Asian subsidiary has signed a definitive agreement to acquire Jinzhou Jin Tai Welding and Metal Co. Ltd., a welding wire business in Jinzhou, China.
Lincoln Asia Pacific currently owns 48% of Jin Tai, and the remaining 52% is held by Taiwan-based Kuang Tai Metal Industrial Co., Ltd. and other partners. Jin Tai's sales in 2008 were approximately $200 million.
"The definitive agreements signed today represent a strategic repositioning for both parties and marks an important step in the evolution of our business in China," said John M. Stropki, chairman and CEO. "Jin Tai will greatly expand our customer base and brings significant cost-competitive MIG wire manufacturing capacity under Lincoln Electric's control. In addition to improving our market position in China by adding an important consumable offering in welding wire, this acquisition will also provide us a low cost and high quality product platform for major export markets" The transaction is subject to approval by both Kuang Tai's shareholders and government regulatory agencies, with closing expected on or about July 1.
