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.