December 12, 2005
Mueller Industries Inc. announced today that it has acquired a 50.5 percent joint venture interest in China to manufacture copper tube, primarily to serve the Chinese domestic OEM air conditioning market as well as complement the company's U.S. product line. The joint venture will produce inner grove and smooth tube in level-wound coils, pancake coils, and straight lengths, and is located in Jintan City, Jiangsu Province, China. The joint venture is expected to produce approximately 80 million pounds of product in 2006 and approximately 110 million pounds of product by 2007.
Mueller initially will invest approximately $19.4 million in cash, and its Chinese venture partners will invest approximately the same amount in machinery, equipment, and other assets. The Chinese venture partners are Jiangsu Xingrong Hi-Tech Company, Ltd. and Jiangsu Baiyang Industries Ltd. The joint venture will be named Jiangsu Mueller-Xingrong Copper Industries Ltd.
Mueller Industries manufactures copper tube and fittings; brass and copper alloy rod, bar, and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products. Its operations are located throughout the U.S. Canada, Mexico, and the U.K.