Sandvik has signed a letter of intent with China’s ZhuZhou
Cemented Carbide Group to form a joint venture.
The JV will based on ZhuZhou’s existing manufacturing
facilities in China, with products to be made to be sold mostly in China.
The cooperation with Zhuzhou Group strengthens our position
in one of our largest markets, China. It is also in line with our current
strategy to become a key player in the mid-market segment, which has been
growing in size and importance in recent years,” Jonas Gustavsson, president of
Sandvik Machining Solutions said.
“Expanding beyond the premium segment in the metal-cutting
tool industry is an important part of Sandvik’s growth ambitions. This
preliminary agreement is a significant step in that direction,” Olof Faxander,
Sandvik’s President and CEO, added.
ZhuZhou is the largest domestic manufacturer of cemented
carbide and compatible tools in China, and provides smelting for tungsten,
molybdenum, tantalum, niobium, and cobalt.