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Bulten AB and North American fastener supplier Ramco Specialties Inc have signed an agreement to form a joint venture, owned equally (50/50), to distribute fasteners to the North American automotive industry.
Bulten is also setting up a subsidiary to produce externally threaded fasteners for the same market. Both operations 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 markets.
The joint venture will operate under the name Ram-Bul LLC, 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, establishing the company’s manufacturing unit for externally threaded fasteners for the North
American market.
Bulten’s total investment is estimated at approximately US$9 million (�8.5 million) – distributed over four years with start-up in 2017. The annual business potential for Bulten is estimated at approximately US$30 million – US$40 million at full volumes by 2020. Deliveries from the joint venture are expected to start in 2017, localising current FSP contracts and European volumes.
“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. 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 of Bulten AB.
”Bulten has been a key partner with Ramco in Europe. This new joint venture will allow both companies to capitalise 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 at Ramco Specialties.
-The 18th China(Guangzhou)Int’l Fastener
& Equipment Exhibition
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