Kawasaki Precision Machinery Acquires Flutek
Apr. 23, 2003
In April of this year, Kawasaki Precision Machinery Ltd. (KPM) acquired the majority of shares of hydraulic equipment manufacturer and KPM distributor, Flutek Co. Ltd., the headquarters of which is located in Changwon City, Gyeongsangnam-do, Korea.
To strengthen our hydraulic equipment operations in Korea, KPM signed an after-sales service contract with Flutek in June 2000 for hydraulic equipment manufactured by KPM, and concluded a technical collaboration agreement over the KPM hydraulic pump, K3V, in July 2001, which is still being produced locally in Korea. In the deal in April, KPM purchased a portion of Flutek's outstanding shares, and also acquired stock in a capital increase. In doing so, KPM acquired a majority of Flutek's stock, effectively obtaining control of the company.
KPM has cooperated with Flutek as a joint production partner to date, and currently plans to expand collaboration in a wide numbers of areas including financial, technical, and human resources, and also enhance local production of hydraulic equipment in Korea. KPM is planning to step up hydraulic equipment operations in the healthy Korean construction equipment market, where strong demand from China is anticipated due to increases in infrastructure and facility requirements there. Having become a subsidiary company of KPM, Flutek will be able to implement plans to expand hydraulic pump operations to grow to a comprehensive manufacturer of hydraulic equipment producing hydraulic motors, control valves and various other hydraulic products for use in a variety of industries.