Sapa AB has signed a letter of intent to acquire the Chinese extrusion company Kam Kiu, one of China's largest extruders with more than 30 extrusion presses as well as anodizing, painting, and fabrication operations. With 2,100 employees, Kam Kiu is based in Taishan in the Guangdong province.
“In 2007, Sapa joined forces with Alcoa to create the largest aluminium extrusion company in the world,” said Ole Enger, chief executive officer of Sapa. “By acquiring Kam Kiu, Sapa will get a strong foothold in China, the most expansive market in the world, and an excellent platform for serving the rest of the Asia region. The Sapa Group has been present in China with its Heat Transfer business for 10 years, and has demonstrated a strong and profitable development. We have recently decided to double our Heat Transfer capacity in China. An acquisition of Kam Kiu Aluminium will establish Sapa as a major extrusion player in China, as well.”
The transaction is expected to close during second quarter 2008.