March 5, 2013
Stockholm, Sweden, March 5, 2013: Atlas Copco (China) Investment Co,. Ltd. has acquired 75% of Shandong Rock Drilling Tools Co., Ltd., 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 sales in 2012 of MRMB 393 (MSEK 420) and 687 employees. 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 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.