Posted on 27 October 2014
Chinese stainless steel manufacturer Shandong Yonghe Precision Metal Co Ltd has completed the partial buyout of its European joint venture, with the support of accountants and business advisory firm Smith Cooper. Following the transaction, Yonghe Precise Metals Europe Limited will shortly be relocating to a new office and warehouse facility in Burton-upon-Trent.
The Chinese manufacturer, which is based in Shandong, established Yonghe Precise Metals Europe in Tamworth in 2012. The European sales, storage and distribution headquarters has experienced substantial growth in the last two years, and the manufacturer took the decision to acquire its partner’s share of the business as part of its growth strategy.
A new office and warehouse facility on Third Avenue was identified, which was chosen due to the central location close to essential transport networks for the arrival and delivery of shipments, and to help meet the growing customer demand for products.
Once the relocation is complete, the Burton-on-Trent facility will store a range of casting products, before they are delivered to automotive, pump and valve and oil and gas clients across the UK and Europe.
The Yonghe Europe staff at the current Tamworth site are relocating to the new premises in Burton-upon-Trent, and up to eight new jobs will be created at the new headquarters in the next year, in line with the business’ growth objectives to double in size over the next 18 months.
Smith Cooper’s tax team provided strategic advice to help facilitate the cross-border buyout including due diligence and deal related structuring advice.
Shaun Gray, Director at Yonghe Precise Metals Europe, said: “The business has experienced impressive growth since we opened the European hub two years ago, with our annual turnover forecast to reach £3million next year, as demand for our products increases alongside a more confident economy.
“Our parent company in China was keen to support our plans to build on this success and move to bigger premises, particularly as our long-term strategy is to develop our own manufacturing plant in Burton-upon-Trent. Smith Cooper’s support was invaluable in coordinating the buyout and facilitating the relocation.”
Ed Saunders, Tax Advisory Partner at Smith Cooper, said: “Yonghe Precise Metals Europe is renowned for its expertise and the quality of its products, and this move signals the next step in its expansion plans, and we worked closely with the management team and other advisors to complete this transaction.
“The new premises will provide a boost to the local economy, creating new jobs with the potential for further employment opportunities down the line, and we’ll continue to support the business as it looks to develop its operations.”