Carborundum Universal to take a 49 per cent stake in Chinese company
By Our Corporate Bureau | 14 Jun 2006
Carborundum Universal Ltd (CUMI) has entered into a joint venture agreement with China Engineering and Exploration Bureau (CEEB) to acquire a 49 per cent stake in Jingri Industrial Diamond Company (JINGRI), Yanjiao, China, for $4.9 million.
Jingri manufactures synthetic diamonds and has an installed capacity of nearly 120 million carat of diamonds. It has a strategic joint venture with Hyosung of Korea in another subsidiary named Yanjiao Jingcheng Diamond Tools Co for producing value-added products from such as diamond saw blades, laser welded segmental saws and other diamond products for the stone and construction market, one of the fastest growing segments in the super abrasive industry, worldwide.
Jingri's consolidated turnover for the year 2005 was about $10 million.
With CUMI's stake acquisition, the JV company will be re christened Jingri CUMI Super Hard Metal Company Ltd. The JV company will set-up a 2,000 tonne bonded abrasive plant in the Yanjiao Province at a new location, land for which has been allotted by the local government.
The Indian company will supply the technology for the abrasive plant. Besides it will also be involved in the management of the business as a JV partner.
This tie-up will help CUMI move towards its twin stated objectives of offering the full range of abrasives and creating a strong manufacturing back-end in India and China to serve its global send this article to a friend customers.
CUMI has also set up a global delivery network through a combination of PAPs (product availability points), distribution agreements, alliances and joint ventures.