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.
Precision Castparts Acquires Interest in Chinese Manufacturer
January 29, 2010