Posted November 26, 2018

Seco Tools to acquire Chinese carbide tool maker

Sandvik's Seco Tools division has agreed to acquire the Chinese company Kunshan Ousike Precision Tools Co. Ltd., a supplier of solid carbide round tools.

“The acquisition is aligned with Sandvik Machining Solutions’ focus on growing the round tools business. We are already today well positioned in China but OSK will bring us even closer to customers,” said Klas Forsström, president of Sandvik Machining Solutions.

“I am very happy that we have reached an agreement to acquire OSK and include them in the Seco family. OSK serves customers in the electronics and die and mould industries and this is an important step for Seco to improve its position in the fast growing Chinese market. Our combined expertise will strengthen the product offering to customers,” said Lars Bergström, president of Seco Tools.

In 2017 OSK had revenues of 120 MSEK ($13.2 million) and 90 employees.

The transaction is expected to close during the first half of 2019 and is subject to relevant regulatory approvals. The purchase price was not disclosed.