Precision Castparts Corp. acquired a 49% interest in China’s Yangzhou Chengde Steel Tube Co., Ltd. Chengde is a leading manufacturer of seamless, extruded pipe as well as pipe and tubing for energy-related applications. The company operates from a facility with a manufacturing footprint of almost 6 million square feet in the Jiangsu Province. Working together, the companies will have a product offering of boiler pipe, interconnect pipe and fittings.
According to PCC, the acquisition will provide for continued earnings growth in PCC’s power-generation business. Chengde also gives the company immediate access to China’s boiler plate market. PCC also plans to use Chengde’s processing capabilities to build its energy pipe business.