Kobe Steel Ltd. has acquired a majority share of Wuxi Compressor Co. Ltd., based in Wuxi, China, turning the company into a subsidiary. Wuxi Compressor manufactures, designs, and sells nonstandard (process gas) compressors, a core component used in petroleum refining, chemical, and natural gas plants.
Kobe Steel acquired a 44.3% equity share of Wuxi Compressor from Wuxi Victor Group Co. Ltd. in 2011. In April 2020, Kobe Steel reached an agreement with Wuxi Victor to acquire an additional 25.7% in Wuxi Compressor, creating a 70% owned subsidiary of Kobe Steel.
By turning Wuxi Compressor into a subsidiary, Kobe Steel will be able to provide more flexible business operations and further strengthen its marketing capabilities while offering more attentive service in China, the company said. The Kobe Steel Group has manufacturing locations for non-standard compressors in Japan, the United States, and China, along with sales and service locations in Germany, the United Arab Emirates, Brazil, the Philippines, and Singapore.