Sapa Acquires Extrusion Plant in China
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Today, Sapa signed an agreement with Jiangyin (Haihong) Non-Ferrous Materials Co., Ltd. ("Haihong"), to acquire the assets and the business of its aluminum profiles facility in Jiangyin, located 150 km North-East of Shanghai.
The facility comprises 15 presses with a total capacity of 60.000 tonnes and is one of the larger extrusion operations in the Yangtze River Delta region. The facility is also equipped with casting, anodizing, horizontal powder coating, thermal break and fabrication capabilities. The transaction is subject to government approval, which the parties expect to receive during Q4 2011.
"Sapa has now successfully established a footprint in Asia and with this acquisition in China we are reinforcing our ability to serve customers in the region. We now have established extrusion and fabrication capabilities in India, Vietnam and China. By utilizing the experience and technical knowledge in Sapa, new solutions will be brought to these markets, benefiting both our local and global customers", says Svein Tore Holsether, President and CEO of Sapa.
Haihong was established in 2007 and operations were initiated in 2009. Haihong's main customer segments are in the solar and industrial markets, while also serving customers in the building and construction and other markets. The company employed 550 people and produced some 20.000 tonnes in 2010.
"We are planning to significantly increase both the capacity utilization and capability of the plant and are now building a local organization which meets our requirements", says Business Area President Profiles Asia, Johan Menckel. "We are also planning to re-locate one of our large presses from North America to this location".
Jarle Dragvik, Managing Director of Sapa Profiles China, has been appointed MD of the Haihong plant.
