FinnvedenBulten grows its light weight business
Dec 20, 2012
- Signs agreement to form joint venture in China and
receives significant order
FinnvedenBulten announces today that the division Finnveden
Metal Structures has signed an agreement with Beijing Hainachuan
Automotive Parts Co., Ltd (BHAP) and Amgain Shandong Magnesium Co.,
Ltd (Amgain) to form a Joint Venture for manufacturing of light
weight die casted components in China. Simultaneously, the division
has received a significant order from a European automotive
manufacturer to deliver die cast magnesium structures. The annual
value of the order is approximately 80 MSEK and the contract runs
for about ten years. Both these events further strengthen
FinnvedenBulten's position within die casted magnesium
components.
FinnvedenBulten's division Finnveden Metal Structures will,
through a total investment of approximately CNY 44 million, become
the largest shareholder in the joint venture with a 40 percent
ownership. The two other owners BHAP, owned by Beijing Automotive
Industry Holding Co Ltd, BAIC, and Amgain will respectively invest
CNY 33 million and hold 30 percent each. Thereby, the Group
establishes its second operation and production facility in the
expanding Chinese market. The agreement is subject to final board
approval in FinnvedenBulten.
The
operations to be included in the joint venture is an up and running
new die casting factory located in Heze City, in the Shandong
Province (between Beijing and Shanghai) which will create an
excellent platform for the joint venture company with a significant
growth potential with customers within the automotive industry, but
also within industries such as high speed trains and
telecom.
Simultaneously, division Finnveden Metal Structures has
received a significant order regarding delivery of die casted
magnesium components to an existing customer - a European
automotive manufacturer - with the annual value of approximately 80
MSEK that runs for about ten years. Manufacturing will initially
take place at the Group's foundry in Bielsko-Biala, Poland, with
production starting 2015. Later on the production will also be
extended to take place in China.
"Through
both these events we clearly strengthen our position within die
casted magnesium components, which is strategically important as
the industry demand for light weight components gradually
increases. In cooperation with BHAP and Amgain we now see
significant growth opportunities in the Chinese market together
with existing European customers present in China as well as
approaching with potential new customers through BHAP", says Johan
Westman, President and CEO of FinnvedenBulten and head of division
Finnveden Metal Structures.
For further information, please
contact:
Johan Westman
President and CEO FinnvedenBulten AB and head of division
Finnveden Metal Structures
Tel: +46 (0)31-734 59 00, e-post:
media@finnvedenbulten.com
Roger
Holtback
Chairman of the Board, FinnvedenBulten AB
Tel: +46 (0)70-548 68 18
About Nordic Capital Private Equity Funds
Since the start in 1989, Nordic Capital Private Equity Funds
have invested in large and medium sized companies, primarily in
Northern Europe. Through committed ownership and by targeting
strategic development and operational improvements, Nordic Capital
creates value in its investments. The funds invest in companies in
Northern Europe and in selected investment opportunities
internationally. They are based in Jersey, Channel Islands, and are
advised by the NC Advisory companies in Sweden, Denmark, Finland,
Norway, Germany and the UK. Additional information about Nordic
Capital is available through its corporate website, www.nordiccapital.com.
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