Atlas Copco Investment Company Ltd. has signed a contract to acquire assets of air tool manufacturer Qingdao Qianshao Precision Machinery Corp., in China and form a joint venture. The purchase price was not disclosed and the purchase is subject to approval from local authorities.

Qingdao, based in Qingdao, Shandong Province, is a leading producer of pneumatic tools for the industrial market. The joint venture is in line with Atlas Copco’s overall strategy to expand its business in Asia. It will complement the strong position of the Chicago Pneumatic (CP) brand in the industrial and automotive aftermarket business.

A new equity joint venture, CP Qianshao (Qingdao) Power Tools Ltd., will be owned 80 percent by Atlas Copco and 20 percent by Qingdao.

"With this joint venture, we focus on sales, design and assembly to give Chicago Pneumatic an immediate presence in China as well as to provide important sourcing for the division’s global needs," said Göran Gezelius, Senior Executive Vice President, Business Area Executive Industrial Technique. "Through the joint venture we get a distribution network with branches in 8 locations and access to key market segments like aerospace, which will be extremely valuable in our ambitions to expand on this market."

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