Burckhardt Compression has entered into a memorandum of understanding to acquire the remaining 40% of Shenyang Yuanda Compressor.
The Swiss gas compression solutions company initially purchased a 60% interest in Shenyang Yuanda Compressor in March 2016 and both companies have collaborated closely since.
Burckhardt Compression has held a call option to acquire the remaining 40% of the Chinese compressor manufacturer’s outstanding shares since May 2020. The company plans to exercise this call option in November 2020.
In the years since the initial interest in Shenyang Yuanda Compressor was acquired, the company has expanded into more segments of the market, the product portfolio has been broadened to address a wider range of market needs.
To help further expand capabilities, a new plant in Shenyang will also be commissioned at the end of September, despite a six-week standstill earlier in the year due to the coronavirus pandemic.