Bridon announces an agreement to sell its majority interest in Bridon Tianjin, manufacturer of elevator rope, to Golik Holdings Ltd, a Hong Kong based company.
“Our global business strategy involves concentrating on key markets that offer the greatest potential for growth,” Tom McBride, President of the Bridon Group, commented.
Elevator rope is not part of our strategic market product portfolio. Bridon can now concentrate on developing our other opportunities in China, with a focus on the recently acquired operation in Hangzhou. Bridon Hangzhou has a good manufacturing base to serve our core strategic markets in Oil & Gas, Mining, and the Construction sectors.
Investment is being made in the operation in Hangzhou with equipment being upgraded and the facility being placed to meet the growing demand for high quality rope across Asia.
Bridon acquired an 80 percent shareholding in Hangzhou Super Strength Wire Ropes in May 2008, with the business trading as Bridon Hangzhou Co.Ltd.
The sale of China Rope Holdings to Golik Holdings Ltd is expected to be completed on November 30, 2008. Bridon acquired its majority interest in China Rope Holdings in January 2005 and operated in a joint venture with Tianjin Steel Wire and Cable Group ltd and Golik Holdings as Tianjin Bridon Rope Ltd. Elevator rope will continue to be sold under licence from Bridon for a two-year post – disposal period.
“Tianjin Rope has grown successfully during the period of ownership by Bridon, and with further capital investment, the business will continue as a major player in the Chinese elevator rope market,” commented Tom McBride.