Sandvik has signed an agreement to acquire a majority stake in the leading China-based company Suzhou Ahno Precision Cutting Tool Technology Co., Ltd. (Ahno) from the current majority owner, Ningbo Baosi Energy Equipment Co., Ltd and related parties. The company will be reported within the business area segment Sandvik Machining Solutions.
Ahno has a leading position in precision cutting tools in the fast-growing local premium segment, with a broad product-and service offering and extensive sales, distribution and production footprint in China. The main customer industries are general engineering and automotive, in which a significant part is towards electric vehicles, and with medical being a growing segment for the company. With this acquisition Sandvik Machining Solutions further strengthens its leading position within round tools, according to the statement.
“This acquisition will strengthen our position in the strategically important Chinese market. Ahno’s competitive assortment and closeness to customers is a great platform to drive further growth of our tooling business in China. Much of the offering is focused on fast growing segments, like electric vehicles, which makes Ahno a perfect fit with our strategy,” says Stefan Widing, President and CEO of Sandvik.
Ahno will form the basis of a new China-based division within Sandvik Machining Solutions. The new division will be established following the closing of the transaction. Sandvik’s international tooling brands will continue to be operated in China as they are today. Ahno’s strong market position, combined with Sandvik’s leading competence and international brands presence will enable an attractive growth platform in China for China going forward, according to the statement.
“This acquisition is in line with our strategic ambition to grow in China and build a leading position in the local premium segment. In addition, Ahno enhances our local production capabilities, making it a great addition to Sandvik,” says Nadine Crauwels, President Sandvik Machining Solutions.
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