Kennametal acquires non-metalcutting ceramics expertise; expands in China

Kennametal Inc has signed a definitive agreement to purchase the Sintec Group, headquartered in Buching, Germany. The transaction, which is expected to close by June 30, 2006, remains subject to customary regulatory approval and negotiated conditions of closing. Sintec Group manufactures ceramic engineered components used in the aerospace, general engineering, metallising and medical markets, among others, and this acquisition complements Kennametal’s core knowledge of materials science. The Sintec Group was founded in 1980 and has operations in Schongau and Buching, Germany, Biel, Switzerland, Shanghai, China, Newport, UK, and in Bridgeport, Con-necticut in the United States. The company employs about 200 people across its facili-ties. The acquisition is in line with Kennametal’s strategy to grow both organically and through acquisitions in the advanced materials and engineered components areas. The company has a core competency in ceramics systems in the metalcutting industry and this purchase will take the company into adjacent technological and geographic markets, allowing us it expand its competency in non-metalcutting ceramics. Kennametal has previously announced its intention to grow this business to become a strong second leg of its total portfolio. [] Kennametal Inc is readying itself to unveil its new $31 million state-of-the art manufacturing facility in Tianjin, China to more effectively serve the Asia-Pacific market, as well as to support the company’s global customers in China. The plant will open on Friday, August 11. The plant will initially employ more than 200 people in manufacturing and advanced engineering design activities, but that is expected to grow to more than 400 people over the next several years with the 160,000 sq ft plant also increasing in size to 450,000 sq ft. It will manufacture standard inserts, solid carbide drills, wear parts, and provide custom solution tooling systems.