Sandvik, Sweden-Sandvik has signed an agreement to acquire a 67% stake in Chuzhou Yongpu Cemented Carbide Tools Co., Ltd., a manufacturer of solid round tools in China, and has the right to purchase the remaining part within three years.

Chuzhou Yongpu Cemented Carbide Tools mainly focuses on global and local original equipment manufacturers and related suppliers operating in China. Its capabilities include a complete round tool manufacturing value chain, covering blanks, cutting tools, repair and coating services. The company will be based in Sandvik Coromant, a division of Sandvik Manufacturing and Processing Solutions.

"The acquisition of Chuzhou Yongpu Cemented Carbide Tool Co., Ltd. is part of our machining solutions business strategy, aiming to increase our market share, occupy a leading position in the overall round tool field, and further expand the Asian market," Sandvik President and Chief Executive Officer Executive Officer Stefan Widing explained. "We look forward to Chuzhou Yongpu Cemented Carbide Tools Co., Ltd. joining Sandvik Group."

Chuzhou Yongpu Cemented Carbide Tools will continue to operate under its own brand and focus on developing its products and market share, determined to become a leading supplier of round tools in China. The company said that the combined expertise and footprint of Sandvik Coromant and Chuzhou Yongpu cemented carbide tools will promote further geographic expansion in the region, especially in cutting tools.

"We have a long-term strategic commitment to strengthen and grow our business," said Nadine Crauwels, President of Sandvik Machining Solutions. "China is a fast-growing solid circle tool market. The acquisition of Chuzhou Yongpu Cemented Carbide Tools Co., Ltd. will further strengthen our influence in this important region and improve our service to customers. Chuzhou Yongpu Cemented Carbide Tools With its superior position and strong focus on customers, the company is very suitable for Sandvik processing solutions."

Chuzhou Yongpu Cemented Carbide Tools is headquartered in Chuzhou, China, and has approximately 500 employees. The company reported that revenue for the 12-month period from the second quarter of 2020 to the first quarter of 2021 was approximately SEK 400 million, and the EBIT margin was slightly lower than that of Sandvik Manufacturing and Processing Solutions. The impact on earnings per share was initially neutral.