Last week the company completed the acquisition of Yangzhou Rock Valve Lock Technology Co., Ltd. for $7.3 million in cash.
The company said that Yangzhou Rock's operations will be included in China Valves' financial results as of January 2010. According to China Valves, Yangzhou Rock has limited working capital requirements and the company expects Yangzhou Rock to contribute approximately $8.6 million in revenue and $3.0 million in net income for 2010.
Yangzhou Rock designs, manufactures and distributes interlock valves, valve lock devices, magnetic lock valves, and mechanical interlock machines that are used by manufacturing companies in the petrochemical, chemical, natural gas, thermal power station and metallurgy industries, including Sinopec and some of its subsidiaries.
The primary use of Interlock valves and machines are to eliminate human errors during operation by making sure that potentially hazardous valve operations are performed in the correct sequence.
