The Chinaust Group, a 50/50 joint venture between GF Piping Systems and Lingyun Industrial Co., expanded its business in China by acquiring two Chinese companies: Shuchang Auto Part Co. Ltd and Lingyun Jingran Gas Valve Co. Ltd. The two companies were the suppliers of the Chinaust Group for years. With the acquisition of the two companies, Chinaust has strengthened its position in the market and improved its competitiveness.
Both the companies taken over by Chinaust are privately-owned companies located in Langfang, in the province of Hebei. Their combined sales during 2015 was approximately CHF 20 million. Both the companies employ a total workforce of 200 employees. Shuchang Auto Part Co. Ltd manufactures quick connectors for automotive fuel lines. Lingyun Jingran Gas Valve Co. Ltd specializes on polyethylene ball valves for gas distribution networks. The process of acquisition of the companies is likely to be completed within the next two months. Happy with the acquisition deal of the two companies, Yves Serra, CEO of GF said “We warmly welcome both companies to our group. They complete very well the offering of our Chinaust joint venture in China and further strengthen its leadership position in two promising sectors”.