News

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 US$10.5m.

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 valves business."

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 worldwide.”

The transaction is expected to be completed during the course of July.

NOTES:

• 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.