On April 2, ZJHL Group’s official website announced that Hailiang shares acquired the copper alloy rod and copper pipe business of German Precision Copper Processing Group and completed the delivery.
The German Precision Copper Group is a global copper processing leader headquartered in Germany, and it is the “big Mac” enterprise with the first production capacity exceeding 1 million tons.
In January 2019, ZJHL Group signed a merger and acquisition agreement with German Precision Copper Group, and acquired its five factories in Germany, France, Italy, and Spain. 230,000 tons of copper rods. On March 31, the parties to the transaction jointly signed legal documents such as the “Memorandum of Delivery” and Hailiang Co., Ltd. paid all payments including the consideration of the transaction in accordance with the “Equity Asset Purchase Agreement”, and the transaction has been completed. . Since the completion of the settlement, Hailiang holds 100% of the KME Group’s five plants in Europe and related assets. The target of the acquisition also includes trademarks and patents, which will help Hailiang Shares to improve the technology research and development and manufacturing capabilities of high-end copper alloy products and further gain a foothold in the European market.
On April 23, our reporter learned from the ZJHL Group that the Hailiang US branch is considering investing $ 156 million in the establishment of a new copper pipe production plant in Sealy, Texas. It is reported that ZJHL’s new factory is located in The–Woodlands-Sugar Land Metropolitan Area in Houston.
From the beginning of construction in Vietnam in 2007, to the merger and acquisition of the copper processing business of Finland Norda Group, the US JMF company, and the acquisition of five factories of the Group this year, Hailiang has completed the global layout of copper processing. At present, ZJHL has become one of the world’s largest copper processing companies, one of China’s largest copper tube and copper pipe joint exporters, and the North American market has always been one of the company’s largest overseas sales markets. Building a production base in the United States is an important part of the company’s global base industrial layout and an important measure to accelerate internationalization.
According to the online public documents of the board of directors of ZJHL, the land in Sealy was bought for $ 45 million in October 2018 for the new copper pipe production line project. The main products include refrigeration air-conditioning pipes, water pipes, and mosquito coils. , Insulation tube, etc.
The Houston Business Journal recently reported that according to documents issued by the Texas auditors, ZJHL Group has applied for tax benefits for the new copper pipe production plant. According to the application materials, as described, the Sealy manufacturing plant located in the western suburbs of Greater Houston will occupy 57 acres. Construction of the project will begin in April 2019 and be completed in January 2020, requiring 400 full-time employees.
The site set up in Houston, USA is one of more than 1,200 acres of industrial land that ZJHL won last year. ZJHL’s strategy is very clear. It is a merger in Europe and a self-built in the United States. Because ZJHL purchased the US company for $ 30 million in the first half of 2016
It is reported that the aquired US company is a leading wholesaler of air-conditioning and refrigeration pipes and plumbing pipes in the United States. It is a family-owned company with a history of more than 70 years and has a complete sales network. In the first year of the acquisition, significant synergies occurred.