Sandvik sells its minority holding in Chinese tungsten JV Gesac
Sandvik Machining Solutions, a division of Sandvik AB, headquartered in Stockholm, Sweden, has divested its 10% minority ownership in Xiamen Golden Egret Special Alloy Co., Ltd. (Gesac), a Chinese joint venture formed in 2005.
Sandvik Machining Solutions reportedly established the joint venture with Xiamen Tungsten Co., Ltd., the majority owner of Gesac, in order to secure the supply of tungsten. Since then, Sandvik Machining Solutions has expanded its cutting tool recycling capabilities as well as acquired Wolfram Bergbau und Hütten in 2009, a world-leading supplier of tungsten powders.
Sandvik’s minority holding will be divested to Xiamen Tungsten Co., Ltd., with the purchase price corresponding to approximately SEK 0.7 billion, based on current exchange rates and upon closing a capital gain of approximately SEK 0.6 billion reported in Sandvik’s net financial items. The closing of the divestment is expected during the summer of 2020.
