Youfa Group signs deal for strategic acquisition of Cangzhou Longtaidi

Tianjin Youfa Steel Pipe Group Co., Ltd. has sealed a strategic cooperation agreement to acquire a 53% equity stake in Cangzhou Longtaidi Pipe Technology Co., Ltd. Upon completion of the transaction, Longtaidi will become a consolidated subsidiary of Youfa Group.

The takeover fills Youfa Group's product gap in high-end corrosion-resistant composite steel pipes. Leveraging Longtaidi's proven technologies and global market access, Youfa Group will rapidly expand into high-margin pipe markets including oil & gas, petrochemical, power transmission and municipal pipeline engineering. Under the acquisition terms, Cangzhou Longtaidi is required to generate a combined net profit of no less than RMB450 million (USD66.51 million) over the next three years, which will deliver tangible earnings growth.