Bulten signs agreement to divest its contract manufacturing operation for the automotive industry in Tianjin, China
Bulten signs agreement to divest its contract manufacturing operation for the automotive industry in Tianjin, China
The divestment is part of Bulten’s ongoing work to simplify the Group and focus on selected core operations.
Bulten has today entered into an agreement to divest 100 percent of the shares in Bulten Fasteners (Tianjin) Co., Ltd. to a local investor group led by Kaikai Chen. The purchase price amounts to CNY 1.0 million (1.42 MSEK).
For the financial year 2025, Bulten Fasteners (Tianjin) Co., Ltd. generated revenue of approximately CNY 88 million (125 MSEK) and had approximately 86 employees.
The transaction is subject to customary closing conditions and regulatory approvals in China and is intended to be completed no later than the end of August 2026.
Background
The divestment supports Bulten’s ambition to reduce complexity and capital intensity while strengthening focus on activities with higher long-term value creation potential.
Axel Berntsson, President and CEO of Bulten AB, comments:
“This is a natural step in our ongoing review of the portfolio and production footprint. The divestment supports our ambition to create a less capital-intensive Bulten, with increased focus on profitability, cash generation and capital efficiency. We have a long-term commitment to China and will focus our resources on high precision parts and C-distribution in selected sectors such as renewable energy, consumer electronics and medical technology,” says Axel Berntsson, President and CEO of Bulten AB.
Based on current assumptions, Bulten expects the transaction to result in a loss at Group level of approximately CNY 63 million (90 MSEK), which has no cash-flow effect. The divestment is expected, based on current assumptions, to reduce the loss contribution from the divested operation and thereby have a positive annualised effect on Bulten’s earnings per share of approximately SEK 0.5–1.0. The final accounting impact will be determined at completion.