Officials at Sandvik AB have signed a letter of intent (LoI) with Zhuzhou Cemented Carbide Group Co. Ltd. to form a strategic joint venture cooperation at Zhuzhou’s current manufacturing sites in China; products will be sold domestically and in overseas markets.
Based in Zhuzhou, the Chinese company is one of the mainland’s top manufacturers of cemented carbide and compatible tools, and sells smelting services for tungsten, molybdenum, tantalum, niobium and cobalt. With 2,000 employees, Zhuzhou enjoys annual sales of $240,000.
Swedish-headquartered company representatives praised the deal. “The cooperation strengthens our position in one of our largest markets with our strategy to become a key player in the mid-market segment,” said Sandvik Machining Solutions President Jonas Gustavsson.