TRUMPF buys Chinese Mechanical Engineering Company

TRUMPF has acquired a majority stake of about 72% in the Chinese machine tool producer Jiangsu Jinfangyuan CNC Machine Co. Ltd. (JFY). This was announced by the Swabian family-owned company at its Annual Press Conference in Ditzingen. "Acquisition of this prestigious Chinese company is strengthening our presence in the world's most important mechanical engineering market," said TRUMPF President Nicola Leibinger-Kammüller.

"It is very unusual that a direct investment like this has been made possible for us, as a medium-sized company – and especially in mechanical engineering, which the Chinese government has classified as a key sector."

JFY manufactures machine tools for sheet metal processing and, in terms of output quantities, ranks as the Chinese market leader for punching and bending machines. The company is also growing increasingly important in the laser cutting machine sector. JFY was privatised in 1997 and is based in Yangzhou (300 km west of Shanghai). In 2012, with almost 700 employees, JFY generated sales of about 70 million Euro.

Two-year acquisition process

The acquisition of the majority stake in JFY was made possible in a process that took over two years to complete, and was positively accompanied by Chinese as well as German authorities and associations. In China, JFY is a powerful and well-established brand – and the brand will continue to remain independent. The cooperation with TRUMPF will strengthen JFY technologically, and it will also benefit from the German company's global position. TRUMPF and JFY will expand their joint sourcing in China, thereby securing cost benefits. The company's operational management will remain in the hands of the team that has managed it for many years, which will also retain the shares in JFY that were not acquired by TRUMPF.

TRUMPF and JFY provided no information about the price involved in the acquisition. TRUMPF and JFY not only complement each other in terms of their product portfolios, they also share the same priorities where corporate culture is concerned. It is the mission of both companies to be technological leaders in their respective market segments. Both also place the highest importance on thinking longterm, on continuous improvement, and on responsible treatment of employees.

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