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.