Tai­wan ma­chine tool maker ac­quires French-based firm

The China Post - - LOCAL -

Tong­tai Group ( ), one of Tai­wan’s lead­ing ma­chine tool mak­ers, said Fri­day that it has com­pleted an ac­qui­si­tion of a 100- per­cent stake in French­based PCI-SCEMM as part of its ef­forts to boost its visibility in the global mar­ket.

Be­fore the ac­qui­si­tion, PCISCEMM served as a designer and man­u­fac­turer of ma­chin­ing sys­tems un­der French auto maker PSA Peu­geot Citroen.

At the end of March, Tong­tai and PCI-SCEMM signed an agree­ment on the ac­qui­si­tion of the head­quar­ters of PSA Peu­geot Citroen lo­cated in Paris, and was wit­nessed by at­tor­neys from both sides.

Be­fore the deal was signed, Tong­tai and PCI- SCEMM had gone through ne­go­ti­a­tions for about one year. Af­ter wrap­ping up the talks, Tong­tai agreed to spend about 5.5 mil­lion eu­ros (US$5.89 mil­lion) to ac­quire the French firm.

Fol­low­ing the sign­ing cer­e­mony, Tong­tai’s ex­ec­u­tives went to the head­quar­ters of PCI- SCEMM in Saint- Eti­enne for a meet­ing which fo­cused on the op­er­a­tions of the French firm af­ter the ac­qui­si­tion. The Tai­wanese suitor has started the process of tak­ing over PCISCEMM’s projects.

On April 3, Tong­tai and PCISCEMM held a news con­fer­ence in the French firm’s head­quar­ters to brief 150 at­ten­dees, in­clud­ing rep­re­sen­ta­tives from the Sanit-Eti­enne city gov­ern­ment, about the newly signed ac­qui­si­tion agree­ment.

Af­ter the buy-in deal, Tong­tai Chair­man Yen Jui-Hsi­ung (

) has be­come the chair­man of PCI-SCEMM, while Huang Yingchun ( ), the head of Tong­tai’s op­er­a­tions di­vi­sion, has served as the pres­i­dent of the France-based firm. Tong­tai said that Huang has been in charge of in­te­grat­ing the re­sources of the Tai­wanese firm and its new French unit.

In 2014, PCI- SCEMM posted about NT$ 1 bil­lion ( US$ 31.95 mil­lion) in sales, slightly higher from a year ear­lier, Tong­tai said, adding that the French sub­sidiary has set a goal to dou­ble its sales by 2020.

Tong­tai said that the ac­qui­si­tion is ex­pected to strengthen the group’s pro­duc­tion ca­pac­ity in rolling out auto prod­ucts. The group said that the deal is ex­pected not only to cater to the Euro­pean auto mar­ket but also to pen­e­trate the grow­ing China car mar­ket.

Tong­tai said that PCI-SCEMM will take part in the 14th China In­ter­na­tional Ma­chine Tool Show, which will kick off in Bei­jing April 20 and run through April 25, as one of the di­vi­sions of Tong­tai.

Rep­re­sen­ta­tives from the new Tong­tai di­vi­sion will visit cus­tomers and deal­ers of the par­ent com­pany dur­ing their stay in Bei­jing.

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