Lincoln Electric Completes Transactions to Secure Majority Stake in Chinese Welding Businesses
July 06 2004 - 12:34PM
PR Newswire (US)
Lincoln Electric Completes Transactions to Secure Majority Stake in
Chinese Welding Businesses CLEVELAND, July 6 /PRNewswire-FirstCall/
-- Lincoln Electric Holdings, Inc. (NASDAQ:LECO) today announced
that it has closed the previously announced transactions to acquire
controlling interests in three welding businesses in China. With
completion of the transactions, Lincoln owns the majority of a
welding equipment manufacturing facility currently under
construction in the Baoshan district of Shanghai, together with two
welding consumables operations -- a flux-cored wire facility also
located in Baoshan and a stick electrode factory in northern China.
"The announcement today is the result of a successful and focused
strategy for Lincoln to secure a leading position in the growing
market for arc welding products in China," said Anthony A. Massaro,
Lincoln's Chairman. "Our majority position in these businesses will
help expand our platform in China and widen our distribution
network through an established organization and structure."
Chairman Tai Long Chou of Kuang Tai Metal Industrial Company
Limited and Singapore-based Tenwell Development Pte Ltd., a member
of the Kuang Tai Group, are Lincoln's current partners in the
Chinese joint ventures and will retain minority stakes in the
businesses. "Our strong business relationship with our joint
venture partners in China has been an important part of our
successful investment in the world's leading growth market for
welding products and has contributed to help accomplish our growing
position. We look forward to continuing our successful venture as
we expand Lincoln's market share in the region," Mr. Massaro said.
Annual sales of between $50 million and $60 million are expected
for the acquired Chinese entities, in addition to revenues from
another welding consumables facility in which Lincoln currently
holds a 48% stake. This manufacturing operation, jointly owned with
Tenwell and Kuang Tai, had 2003 revenues of approximately $65
million and maintains a leading position in the MIG wire market in
China. Lincoln Electric is the world leader in the design,
development and manufacture of arc welding products, robotic
arc-welding systems, plasma and oxyfuel cutting equipment.
Headquartered in Cleveland, Ohio, Lincoln has operations,
manufacturing alliances and joint ventures in 18 countries and a
worldwide network of distributors and sales offices covering more
than 160 countries. For more information about Lincoln Electric,
its products and services, visit the Company's Web site at
http://www.lincolnelectric.com/ . The Company's expectations and
beliefs concerning the future contained in this news release are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements reflect
management's current expectations and involve a number of risks and
uncertainties. Actual results may differ materially from such
statements due to a variety of factors that could adversely affect
the Company's operating results. The factors include, but are not
limited to: the effectiveness of operating initiatives; currency
exchange and interest rates; adverse outcome of pending or
potential litigation; possible acquisitions; the strength and
duration of the increase in U.S. demand for the Company's products;
and the possible effects of international terrorism and hostilities
on the Company or its customers, suppliers and the economy in
general. DATASOURCE: Lincoln Electric Holdings, Inc. CONTACT: Roy
L. Morrow of Lincoln Electric Holdings, Inc., +1-216-383-4893, or
Web site: http://www.lincolnelectric.com/
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