Bridon sells stake in Chinese elevator rope jv

18 November 2008

“Our global business strategy involves concentrating on key markets that offer the greatest potential for growth,” said Tom McBride, president of the Bridon Group.

“Elevator rope is not part of our strategic market product portfolio. Bridon can now concentrate on developing our other opportunities in China, with a focus on the recently acquired operation in Hangzhou. Bridon Hangzhou has a good manufacturing base to serve our core strategic markets in the oil and gas, mining, and construction sectors.”

Bridon said that investment is being made in the operation in Hangzhou with equipment being upgraded and the facility being placed to meet the growing demand for high quality rope across Asia.

Bridon acquired an 80 percent shareholding in Hangzhou Super Strength Wire Ropes in May 2008, with the business trading as Bridon Hangzhou Co. Ltd.

The sale of China Rope Holdings to Golik Holdings Ltd is expected to be completed on 30 November 2008. Bridon acquired its majority interest in China Rope Holdings in January 2005 and operated in a joint venture with Tianjin Steel Wire and Cable Group Ltd and Golik Holdings as Tianjin Bridon Rope Ltd. Elevator rope will continue to be sold under licence from Bridon for a two-year post-disposal period.