Atlas Copco (China) Investment Co. Ltd., Shanghai, China, a subsidiary of Atlas Copco Group, Stockholm, Sweden, has acquired a majority stake in Shandong Rock Drilling Tools Co. Ltd., a Chinese supplier of rock drilling tools. The acquisition strengthens Atlas Copco’s position in the local market in mining and construction consumables.
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Shandong Rock Drilling Tools had sales in 2012 of RMB 393 million (US$62.1 million) 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 acquire close to 25 percent 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.”
Atlas Copco’s Mining and Rock Excavation Technique business area provides equipment for drilling and rock excavation. The business area innovates for sustainable productivity in surface and underground mining, infrastructure, civil works, well drilling and geotechnical applications.