Indian seamless tubes major ISMT Ltd, through its subsidiaries and affiliates, has acquired 100% stake in Swedish company Structo Hydraulics AB, which manufacturer’s tubular components for the hydraulic cylinder industry from seamless tubes.
Structo Hydraulics AB's factory is located at Storfors in Sweden and the company has an extensive marketing network throughout Europe. It has an annual turnover of SEK 450 million (INR 300 crores). It is a manufacturer of tubular components for the hydraulic cylinder industry and established supplier to many multinationals particularly those in the construction and agricultural equipment industry. Structo's product range includes cold drawn seamless tubes, cold drawn welded tubes, roller burnished cylinder tubes, cold formed tubes and components. The product selection covers a wide and comprehensive range of dimensions. Structo Hydraulics AB also offers also technical support, customized solutions and logistics system for integrated manufacturing.
As per ISMT release, this acquisition brings ISMT one step closer to its strategic objective of becoming the largest producer of tubes and tubular components for hydraulic cylinders in Europe and Asia and also provides ISMT quick access to the growing demand for hydraulic cylinder tubes and components within India and China. The release adds that “Structo's marketing network in Europe will also be utilized to market other ISMT products in Europe.” In addition ISMT will be introducing Structo's product line in India thereby offering Indian customers full range cold drawn tubes, skived and roller burnished tubes and components for hydraulic cylinders.
Structo's market positioning in Europe will be strengthened as a result of access to a captive raw material base through ISMT. In the near term ISMT expects that this acquisition will create a captive market of roughly 100,000 tonnes per annum of high value seamless tubes.
ISMT Ltd is a leading producer of precision seamless tubes and alloy steels. It operates three manufacturing plants based in India and supplies precision seamless tubes and steel to the bearing, automotive, mining, OCTG and energy industries worldwide. ISMT is currently in the process of increasing its steel making capacity from 250,000 tonnes per annum to 500,000 tonnes per annum and its seamless tube making capacity from 150,000 tonnes per annum to 450,000 tonnes per annum.
