14-09-2020
Burckhardt Compression to acquire the remaining 40% of Shenyang Yuanda Compressor
Burckhardt Compression has entered into a memorandum of understanding to acquire the remaining 40% of Shenyang Yuanda Compressor. Burckhardt Compression initially purchased a 60% interest in Shenyang Yuanda Compressor, a Chinese compressor manufacturer based in Shenyang, in March of 2016 and both companies have collaborated closely in the meantime. To finance the acquisition, Burckhardt Compression plans to issue a bond in the Swiss capital market.
Burckhardt Compression has held a call option to acquire the remaining 40% of Shenyang Yuanda Compressor’s outstanding shares since May 2020. The company plans to exercise this call option in November of 2020. Burckhardt Compression intends to further strengthen its leading market position in China by acquiring the remaining 40% of Shenyang Yuanda Compressor. In the years since the initial interest in Shenyang Yuanda Compressor was acquired, the company has expanded into more segments of the market, the product portfolio has been broadened to address a wider range of market needs, and Burckhardt Compression has gained direct access to a well-established local supply chain. Compressors manufactured by Shenyang Yuanda Compressor have been available in selected export markets through Burckhardt Compression’s sales and distribution channels since 2019. Shenyang Yuanda Compressor employs approximately 650 people in China and generated sales of CHF 100 million in 2019. Burckhardt Compression is planning a maiden bond issue to be listed on the Swiss market to finance the acquisition of the 40% interest in Shenyang Yuanda Compressor.
New factory in Shenyang will commence operations at the end of September
The new plant in Shenyang will be commissioned as planned at the end of September, despite a six-week standstill earlier in the year due to the outbreak of the coronavirus. It will comprise a production area of 86,000 m2 on a total land area of 153,000 m2 and thus has approx. 60% more production floor space than the two former sites combined. The new plant replaces both sites, which were engulfed by Shenyang’s rapid urban growth and are now located in the middle of the city. The land of the current sites will be handed back to the government. Construction costs for the new plant and the relocation costs will therefore be reimbursed by the Chinese government. The new plant marks an investment in the company’s future business development. Operations at the former two locations are being combined at the new site, where workflows and processes have been aligned with the latest standards and best practices to improve operational efficiency even more.
Outlook confirmed
Burckhardt Compression confirms its guidance for fiscal year 2020 and expects more than CHF 650 mn in sales as well as stable profit margins.
Sponsor:
News Category:
-
Burckhardt Compression strengthens its presence in Thailand
After four years of successful cooperation as authorized service partner of Burckhardt Compression, SPAN Maintenance and Service Co. Ltd. in Thailand will be incorporated ...
15-02-2023
-
Burckhardt Compression order intake passed one billion Swiss francs
Since the start of the fiscal year on April 1st 2022, Burckhardt Compression's order intake passed one billion Swiss francs, a new milestone in the company's history. ...
20-12-2022
-
Optimized energy efficiency and fewer emissions after compressor revamp
Our customer, a global chemicals company, operates two vertical Process Gas Compressors in their petrochemical plant. High leakages, reduced gas flow, temperature issues ...
24-11-2022
-
LIFTE H2 and Burckhardt announce collaboration for Hydrogen projects
The hydrogen infrastructure development company LIFTE H2, head quartered in the US with a German subsidiary, and compressor manufacturer Burckhardt Compression, head ...
21-07-2022
-
Shenyang Yuanda Compressor receive order for green hydrogen Project
Shenyang Yuanda Compressor Co. Ltd., a fully owned subsidiary of Burckhardt Compression, has signed a contract with Sinopec Guangzhou Engineering Co. to supply three ...
09-05-2022
-
Burckhardt Compression to supply compressors for renewable diesel production at Preem refinery
Burckhardt Compression has been selected by Preem Refinery as a compressor supplier for their Refinery in Lysekil, Sweden. The order includes two fully packaged API 618 ...
06-05-2022
-
Burckhardt Compression begin construction of a hydrogen test facility in Winterthur
Today Burckhardt Compression in Winterthur laid the groundbreaking for the construction of a hydrogen test facility. It will serve the further development of sealing ...
05-04-2022
-
Burckhardt Compression and KB Delta have signed a global distribution agreement in December 2021, effective January 1, 2022. Burckhardt Compression acts as worldwide ...
17-01-2022
-
Burckhardt Compression signs contract to equip a mega-plant with three Hyper Compressors in China
Burckhardt Compression has signed a contract with Jiangsu Hongjing New Material Company Ltd. to equip three production lines for EVA (ethylene-vinyl acetate copolymers) ...
03-12-2021
-
Burckhardt Compression acquires Mark van Schaick BV
Burckhardt Compression has signed on December 2, 2021 an agreement to acquire 100% of the shares in Mark van Schaick BV, based in Rotterdam, Netherlands. The company ...
02-12-2021