The Hindu Business Line : ISMT buys Swedish co

Pune June 5 Precision seamless tubes maker ISMT Ltd has acquired 100 per cent stake in Swedish company Structo Hydraulics AB, a manufacturer of tubular components for the hydraulic cylinder industry.

Located at Storfors, Structo makes downstream products from ISMT's seamless tubes and has an annual turnover of SEK 450 million (Rs 300 crore). It is a supplier to many multinationals particularly those in the construction and agricultural equipment industry.

As per a company statement, the acquisition brings ISMT a step closer to its strategic objective of becoming the largest producer of tubes and tubular components for hydraulic cylinders in Europe and Asia. While Structo's marketing network will be used to market other ISMT products in Europe, its market positioning in Europe will be strengthened as a result of access to the latter's captive raw material base.

Captive market

In the near-term, ISMT expects that this acquisition will create a captive market of roughly 1,00,000 tonnes per annum of high value seamless tubes. Structo's product line will also be introduced in India thereby offering Indian customers a full range cold drawn tubes, skived and roller-burnished tubes and components for hydraulic cylinders

With many of Structo's customers already having factories in India and China, the plan is to expand manufacturing operations to India and subsequently to China in an effort to support customers in these and in the neighbouring regions.

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