Bulten establishes in USA and forms a joint venture with Ramco for fastener solutions for the North American market
Bulten AB (publ) (Bulten), one of the largest suppliers of fasteners to the international automotive industry, and North American fastener supplier Ramco Specialties Inc. (Ramco) announced today that they have signed an agreement to form a joint venture, owned equally (50/50), for distributing fasteners to the North American automotive industry. At the same time, Bulten also sets up a subsidiary for producing externally threaded fasteners for the same market. The operations of both entities are scheduled to start in 2017. The formation of the joint venture and subsidiary will establish Bulten’s FSP concept along with a manufacturing footprint in the USA, which is one of the world's largest auto market with significant potential.
The joint venture will operate under the name Ram-Bul LLC (Ram-Bul), headquartered in Ramco’s new corporate headquarters in Hudson, Ohio. Ram-Bul will offer sales and distribution of fasteners for the North American market through Bulten’s FSP concept. Bulten’s manufacturing expertise in externally threaded fasteners, coupled with Ramco’s manufacturing experience in internally threaded fasteners, will allow Ram-Bul to offer a full range of domestically manufactured fasteners in Ramco’s already established infrastructure.
Bulten’s new production subsidiary, Bulten North America LLC, will be set up in the same building as Ram-Bul and will thus establish its first unit for manufacturing externally threaded fasteners for the North American market.
Bulten's total investment is estimated at approximately USD 9 million distributed over four years with start-up in 2017 and the annual business potential for Bulten is estimated at approximately USD 30-40 million at full volumes by 2020. The initiative is expected to have an initial marginal negative effect on Bulten's results in 2017 and 2018 with approximately SEK 3-4 million per year.
Deliveries from the joint venture are expected to start in 2017, localizing current FSP contracts and European volumes. The joint venture will be reported using the equity method.
“Bulten’s previous experience in forming joint ventures has been taken into account when setting up the company structure, and we believe that this is the quickest and most cost-effective way of supporting our customers in the US market as well. Ramco has been a partner of Bulten for many years and I am really looking forward to our extended cooperation, which I am convinced will create long-term value for our shareholders”, says Tommy Andersson, President and CEO, Bulten AB.
”Bulten has been a key partner with Ramco in Europe. This new joint venture will allow both companies to capitalize on their unique strengths bringing value to the North American fastener market. We are excited about the opportunity to expand our North American manufacturing and distribution capabilities”, says Rick Malson, President, Ramco Specialties.
For more information, please contact:
Tommy Andersson, President and CEO, Bulten AB
Kamilla Oresvärd, SVP Corporate Communications, Bulten AB
Tel: +46 70 520 5917
This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the SVP Corporate Communications set out above, at 18:20 CET on 24 February, 2017.
Bulten is one of the leading suppliers of fasteners to the international automotive industry. The company’s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,300 employees in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. More information can be found at www.bulten.com.
Ramco Specialties Inc. is a Tier 1 supplier to the North American automotive market, with additional locations in Sweden and Italy. Ramco specializes in internally threaded fasteners, engineered assemblies, and stampings. Ramco is privately held and has been headquarter in Hudson Ohio since 1977. The global turnover for 2017 is forecasted to USD 80 million and the company has 170 employees. More information can be found at www.ramconut.com.