Ovako acquires operations of BE Group in China

Ovako today announced that it has signed an agreement to acquire the operations of BE Group in China. This accelerates Ovako’s plan to establish a service centre in China. The objective is to support Ovako’s customers in Asia with specific niche products.

– With the acquisition of BE Group's operations in China we are taking the step of establishing Ovako in Asia. This is an important market for us and for our customers and we hope this will enable us to provide them with even better support. The acquisition is also in line with our strategy to establish Ovako as a premium provider of engineering steel and to broaden our international position in selected niche areas, says Tom Erixon, President and CEO Ovako.

The transfer is expected to be completed before the end of June. The purchase price corresponds essentially to the net assets of the operation in China and will have a marginal impact on Ovako’s accounts. The purchase price is estimated at approximately SEK 10 million.

For further information, please contact:
Viktoria Karsberg, Head of Group Communications, +46 70 209 93 96

Ovako is a leading European producer of engineering steel for customers in the bearing, transport and manufacturing industries. Our production covers low-alloy steels and carbon steels in the form of bars, tubes, rings and pre-components. The company has 11 production sites and a number of sales companies in Europe and the USA. Sales in 2012 amounted to EUR 937 million and the company had 3,040 employees. Our total production capacity is 1.3 million tonnes of steel per year.

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About Us

About OvakoOvako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Our steel makes our customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally-friendly products. Our production is based on recycled scrap and includes steel in the form of bar, tube, ring and pre-components. Ovako has around 3,000 employees in more than 30 countries and sales of approximately EUR 1000 million. Since June 2018, Ovako is a subsidiary within the Japanese Nippon Steel Corporation group, the third-largest steel producer in the world with 93,500 employees globally and a revenue of EUR 43 billion. For more information, please visit us at www.ovako.com and www.nipponsteel.com.