Kobe Steel Acquires 44.3% Equity Share In Wuxi Compressor
Kobe Steel, Ltd has acquired a 44.3% equity share in Wuxi Compressor Co. Ltd., based in Wuxi, Jiangsu Province, China, after reaching an agreement with parent company Wuxi Victor Group Co. Ltd. Kobe Steel said its investment in Wuxi Compressor will enable the two parent companies to expand their process compressor businesses centered on oil refineries, petrochemical plants, and LNG applications in the energy and chemical fields.
Kobe Steel, which makes non-standard and standard compressors, will supply Wuxi with its technology for process gas compressors (screw, centrifugal and reciprocating). The technology transfer will enable Wuxi Compressor to manufacture compressor systems in China from locally procured parts and market them through Wuxi’s sales network. Sales are anticipated to double in five years to 2015, compared with 2010, Kobe said.
The acquisition of the Wuxi shares was made through Kobelco (China) Holdings Co. Ltd., Kobe Steel’s China headquarters. This was Kobelco (China) Holdings’ first investment upon its start of operations in April.
Wuxi Victor Group Co. Ltd. has a 51.5% share in Wuxi Compressor, while Kobe Steel has 44.3%, and other investors hold the remaining 4.2%.
For more information: www.kobelco.co.jp/english/index.html