GOTHENBURG: Bulten AB, the global fastener manufacturer and distributor, announced today a significant step in its ongoing restructuring efforts with an agreement to divest its contract manufacturing operation in Tianjin, China.
The company has inked a deal to sell 100 percent of its shares in Bulten Fasteners (Tianjin) Co., Ltd. to a local investor group led by Kaikai Chen. The transaction is valued at CNY 1.0 million (approximately 1.42 MSEK).
This move is a direct result of Bulten’s internal review of its portfolio and production footprint. The company is aggressively working to reduce complexity and capital intensity, allowing it to funnel resources into core operations with higher long-term value creation.
“This is a natural step in our ongoing review of the portfolio and production footprint,” said Axel Berntsson, President and CEO of Bulten AB. “The divestment supports our ambition to create a less capital-intensive Bulten, with increased focus on profitability, cash generation and capital efficiency.”
A Strategic Refocus in the Region
While the divestment represents a withdrawal from contract manufacturing in the region, Bulten is not leaving China. Instead, the company is sharpening its focus on specific high-value sectors.
“We have a long-term commitment to China and will focus our resources on high precision parts and C-distribution in selected sectors such as renewable energy, consumer electronics and medical technology,” Berntsson added.
Impact on Financials
For the 2025 fiscal year, the Tianjin operation generated revenue of approximately CNY 88 million (125 MSEK) and employed around 86 people.
The divestiture will come at a cost to the bottom line. Based on current assumptions, Bulten expects the transaction to result in a loss at the Group level of approximately CNY 63 million (90 MSEK). However, the company notes that this loss has no cash-flow effect.
Conversely, the sale is expected to reduce the loss contribution from the divested entity, resulting in a positive annualized effect on Bulten’s earnings per share of approximately SEK 0.5–1.0. The final accounting impact will be determined upon completion of the deal.
Timeline and Conditions
The transaction is subject to customary closing conditions and regulatory approvals in China. Bulten anticipates the deal to be finalized no later than the end of August 2026.
About Bulten
Bulten Group is a leading global manufacturer and distributor of fasteners, primarily serving the automotive industry but also expanding into sectors like consumer electronics. Founded in 1873 and headquartered in Gothenburg, Sweden, the company employs approximately 1,700 people worldwide. Bulten reported net sales of SEK 5,045 million in 2025 and is listed on Nasdaq Stockholm under the ticker BULTEN.
