Chinese cable maker Shenzhen Woer buys Asian assets from Belden

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 28, 2013 1:32 pm ET

Related to this story

Topics Mergers & Acquisitions, China, Electrical/conduit, Wire & cable

HONG KONG -- Shenzhen Woer Heat-Shrinkable Material Co. Ltd., which makes a range of plastic wire and cable products and claims to be the largest maker of such heat-shrinkable materials in China, is paying US$43.3 million (269.7 million Chinese yuan) to buy the Asian consumer electronics assets of American cable maker Belden Inc.

The acquisition of Belden's Hong Kong-based LTK International subsidiary will give Shenzhen Woer substantial additional manufacturing capacity in China. It is also designed, company officials said, to expand its presence in the electronics industry and speed development of environmentally oriented cross-linked materials.

Woer, which was founded in 1998 and is based in Shenzhen, makes cross-linked polyethylene wires, heat shrinkable tubing and materials, polytetrafluoroethylene tubing and EPDM elastomer tubing, among 2,500 products.

The company is publicly-traded on the Shenzhen Stock Exchange and says it specializes in the manufacture and R&D of cross-linked materials.

"Through this acquisition, Woer aims not only to develop its electronics business but also give LTK the ability to share and capitalize on the resources of both Woer and LTK," LTK said in a January letter to customers. "This strategic alliance will allow both parties to stay ahead of their competitors and offer new attention-getting and leading products in electronic cable as well as environmentally-friendly cross-linked materials."

Belden, based in St. Louis and traded on the New York Stock Exchange, bought LTK in 2007 for $195 million (1.42 billion yuan). At the time, Belden said LTK had 2006 annual sales of about $220 million (1.71 billion yuan).

Belden said the Woer deal involved only a part of the original LTK purchase in 2007, but it said the sale would reduce Belden revenues by US$120 million (747 million yuan) in 2013. It said the assets sold were break-even on an operating basis.

"The marketplace was not aligned with our strategic objectives of growth and profit profile, and therefore we felt it better to place it in other's hands," the company said in a statement. "We did take a loss on the sale of these assets."

LTK has four manufacturing plants in China and makes products such as PVC and TPE jacketed cables for data, transmission and automotive applications. It has subsidiaries in Chongqing, Dalian and Huizhou, and more than 2,000 employees, according to its website.

The companies announced the sale in September and completed it Dec. 31. Belden was advised on the deal by the investment bank Houlihan Lokey.


Comments

Chinese cable maker Shenzhen Woer buys Asian assets from Belden

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 28, 2013 1:32 pm ET

Post Your Comments


Back to story


More stories

Quality Vision buys ShapeGrabber

April 23, 2014 10:19 am ET

Quality Vision International Inc. of Rochester, N.Y., has purchased ShapeGrabber Inc., a maker of automated three-dimensional scanners, in a deal...    More

Image

Sabic adding Stamax production line in Shanghai

April 23, 2014 6:55 am ET

SHANGHAI — Sabic Innovative Plastics announced April 23 at Chinaplas that it is investing in a production line for Stamax-brand long glass...    More

Image

Pregis Corp. to get new owner

April 22, 2014 11:44 am ET

The private equity owner of Pregis Corp. is selling off its North American operations for an undisclosed sum.    More

DuPont: Asia's food packaging market at a major transition point

April 21, 2014 1:26 pm ET

DuPont Co. touted its packaging innovations and applications, and updated the firm's commercial status at a media event two days before the Chinaplas ...    More

Officials warn China's PVC overcapacity will only get worse

April 21, 2014 3:47 pm ET

Despite worsening overcapacity, China still imports a million tons of PVC.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events