Kobe Steel Limited (Kobe Steel) has acquired a 44.3% equity share in Wuxi Compressor Co Limited (Wuxi), after reaching an agreement with parent company Wuxi Victor Group Co Limited. The investment will allow Kobe Steel to meet the increasing demand for process gas compressors in China. The acquisition of the Wuxi shares was made through Kobelco (China) Holdings Co Limited, Kobe Steel’s China headquarters. Wuxi Victor Group Co Limited holds a 51.5% share in Wuxi Compressor, Kobe Steel holds 44.3% and other investors hold the remaining 4.2%.
Wuxi Compressor is a comprehensive manufacturer of compressors used in the oil refining and petrochemical industries. Kobe Steel’s investment in Wuxi Compressor will allow the two parent companies to expand their process compressor businesses which are focused on oil refineries, petrochemical plants and LNG applications in the energy and chemical industries. Kobe Steel will provide Wuxi with its technology for process gas compressors enabling Wuxi to manufacture compressor systems in China using locally acquired parts and market them through Wuxi’s strong sales network. Kobe Steel anticipates that sales will double in five years to 2015, in comparison to fiscal 2010, ended March 2011. Kobe Steel’s compressor business consists of large process gas compressors, a significant part of oil refineries, petrochemical plants and natural gas plants.
