A Chinese tool manufacturer is less than a month away from owning Kennametal's plant in Evans, in addition to the company's high speed steel drill product line and three other facilities.
Top-Eastern Drill Co., which is based in Dailan, China, east of Beijing, has an agreement with Kennametal Inc., based in Pittsburgh, to buy the drills, related product lines and assets for $29 million.
The deal is still pending and should close by the end of June, said Christina Reitano, Kennametal's corporate communications manager.
The transaction involves four facilities -- Clemson, S.C.; Mexico City; and Mississauga, Ontario, Canada, are the other three -- and about 400 employees.
The Evans facility at 470 Old Evans Road employs 270 workers, Ms. Reitano said. The facility is worth $7.8 million, according to Columbia County records.
Top-Eastern Drill Co. has not released its plans for the facilities. Phone and e-mail inquiries to representatives at the company's Seattle office were not answered Wednesday.
"Specific details regarding how the Evans facility will be impacted by this sale will be a matter for the buyer to determine, and we cannot speak on their behalf," Ms. Reitano said. "Our goal was to find a buyer for these operations with the potential to grow them and serve customers. We believe Top-Eastern Drill Co. is such a match."
Established in 1994, Top-Eastern Drill is a global manufacturer of high speed steel drills and taps. The company also operates a tungsten mine and processing facilities, a steel-making plant, a tungsten carbide manufacturing plant, and is a manufacturer of coating equipment for the metal industry.
This is not the first deal between the companies. Top-Eastern Drill bought another division from Kennametal, the Werko branded European high speed steel product line, in 2008.
According to a Kennametal statement, the pending sale will provide it cash to "preserve operating flexibility during the current economic downturn."
The company remains profitable, however, posting a gross profit of $103.8 million for the first quarter of 2009, though that was down from $237.9 million in the first quarter of 2008.
Kennametal, a global supplier of tooling, engineered components and advanced materials, has 14,000 employees in 60 countries. It acquired the Evans facility in 1997 when it bought Greenfield Industries, a company based in Evans, for $1 billion.
Reach Tim Rausch at (706) 823-3352 or timothy.rausch@augustachronicle.com.
The Augusta Chronicle ©2010 Morris Communications, LLC. All Rights Reserved.
Do we need to add Chinese (Mandarin or Cantonese?) to the high school curriculum?
OH BOY!!! America keeps selling out!!! Going to regret it in years to come. Our children are not going to own America !!!
1. Yes, we need to add Mandarin to our curriculum.
2. Be grateful that some smart and industrious people see the value of investing here -- American jobs will stay here. The alternative would be to close the Evans factory and have this stuff made overseas. Is that what you want?
yeah this is just great.....in no time this Country will be owned by the Chinese.
It seems that few Americans are plying with the taxpayers money of their own nation. A company is bought 12 years back at 1 billion USD and it is sold at 1/100th of the price!
Boy only GOD can save US
g_nius, if you would think about what you read, you would notice, Kennametal "aquired" Evans when it purchased Greenfield, they didnt sell Greenfield, only Evans, DUH. I think your name is not quite accurate.
Though, i will add this, it was a huge mistake!
I was layed off june 25, at the clemson plant, and what I've been hearing is that all these machines coming from Evans and going to clemson,WHO is going too set-up and operate all these machines? I'm going to put it out there, FRED MOSS, SCOTT HENDERSON,SUSAN MILLER, WAYNE BARNES, DONNY EDGAR, MARK ORR, MIKE, WHOEVER reads this first, I will come back on 3rd shift or first shift with absolutly no hard feelings,just give me a call. SINCERELY INTERESTED KENNETH WOODY
Ugie, yes they did sell Greenfield the name and 4 plants to TDC. Kennametal sold Evans, Clemson, a plant in Canada and one in Mexico to TDC. Also Darton44 I do so hope that you get your job back. I would love to keep mine. Good luck hope it works out for you.