Chinese manufacturer completes buy-out of Staffordshire metals business
CHINESE stainless steel manufacturer Shandong Yonghe Precision Metal Co Ltd has completed the partial buyout of its Staffordshire-based European joint venture in an undisclosed deal.
Following the transaction, Yonghe Precise Metals Europe is set to relocate to a new office and warehouse facility in Burton-upon-Trent. The relocation is in line with the company’s plan to double in size over the next 18 months.
The Chinese manufacturer, which is based in Shandong, established Yonghe Precise Metals Europe in Tamworth in 2012. Since then, the European sales, storage and distribution headquarters has experienced substantial growth, so the manufacturer took the decision to acquire its partner’s share of the business as part of its growth strategy.
The new office and warehouse facility on Third Avenue was identified, partly because of its location close to essential transport networks.
Once the relocation is complete, the Burton facility will store a range of casting products, before they are delivered to automotive, pump and valve and oil and gas clients across the UK and Europe.
Staff at the Yonghe Europe site in Tamworth will relocate to the new premises in Burton in a move set to create eight new jobs.
Business advisory firm Smith Cooper’s tax team advised on the cross-border buyout, supplying due diligence and deal-related structuring advice.
Shaun Gray, director at Yonghe Precise Metals Europe, said: “The business has experienced impressive growth since we opened the European hub two years ago, with our annual turnover forecast to reach £3m next year, as demand for our products increases alongside a more confident economy.
“Our parent company in China was keen to support our plans to build on this success and move to bigger premises, particularly as our long-term strategy is to develop our own manufacturing plant in Burton-upon-Trent. Smith Cooper’s support was invaluable in coordinating the buyout and facilitating the relocation.”
Ed Saunders, Tax Advisory Partner at Smith Cooper, said: “Yonghe Precise Metals Europe is renowned for its expertise and the quality of its products, and this move signals the next step in its expansion plans, and we worked closely with the management team and other advisors to complete this transaction.
“The new premises will provide a boost to the local economy, creating new jobs with the potential for further employment opportunities down the line, and we’ll continue to support the business as it looks to develop its operations.”
