Weir Group has confirmed the acquisition of a South Korean valves business, which supplies products to Korean companies for international projects.

The business was previously operated by HIM Tech but Weir Group has now taken a majority stake. In the 12 months to the end of 2010, HIM Tech’s values business made sales of £6.5 million (US $10.5 million).

Weir has agreed to acquire 60 per cent of a new Korean company, Weir International, into which the HIM Tech valves business has been transferred.

Keith Cochrane, chief executive of Weir, said the acquisition in South Korea would increase the company’s global capacity.

He explained, ‘This acquisition allows us to add local content in Korea and provides strong links to a number of important Korean contractors who supply both the home and international markets.’

Cochrane said the team at Him Tech is very well known to Weir because of past trading relationships.

He added, ‘In recent months we have been collaborating on a number of initiatives which we expect will generate new orders for our global valves business.’

Heang Hoon Cho, who will continue as president of the Korean operation under the Weir banner, added, 'I have worked with Weir for 17 years.

‘The acquisition opens many new avenues to expand the business both in Korea and with Korean customers worldwide.’

The transaction will be completed during the course of July. The book value of gross assets of the HIM Tech valves business at 31 December 2010 was £1.1 billion (US $1.8 million).