Weir acquires South Korean Valve Company, HIM Tech
The Weir Group PLC has agreed to acquire a
majority interest in the South Korean valves business formerly
operated by HIM Tech Co Ltd (“HIM Tech”).
Located in Ansan, near Seoul, the business
designs and manufactures control and choke valves for severe
service power generation and oil & gas applications. As well as
domestic customers, its products are supplied to major South Korean
engineering contractors for international projects. In the year to
31 December 2010, HIM Tech’s valves business recorded sales of
Weir has agreed to acquire 60% of a new Korean
company, Weir International, into which the HIM Tech valves
business has been transferred.
Keith Cochrane, chief executive of Weir,
commented: “This acquisition in South Korea, one of the “Next
11” high growth economies, increases our global capability,
allowing us to add local content in Korea and provides strong links
to a number of important Korean contractors who supply both the
home and international markets. The team at HIM Tech, led by
Heang Hoon Cho, are already well known to us as trading partners.
In recent months we have been collaborating on a number of
initiatives which we expect will generate new orders for our global
Heang Hoon Cho, who will continue as
president of the Ansan operation under the Weir banner, added:
“I have worked with Weir for 17 years, first as agent and then
licensee, and I am delighted that we are becoming an integral part
of the Weir Group. The acquisition opens many new avenues to expand
the business both in Korea and with Korean customers
The transaction is expected to be completed
during the course of July.
- The book value of gross assets of the HIM
Tech valves business at 31 December 2010 was US$1.8m.
- Financial data relating to HIM Tech have been
converted from Korean Won at US$ 1 = KRW 1100.
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