Elliott Turbomachinery Co. on Thursday sold its air compressor division to Fu Sheng Industrial Co. Ltd., a Taiwanese manufacturer of compressors, electronic components and titanium golf club heads.
The acquisition of Elliott's Plant Air Package centrifugal compressor division affects 40 salaried workers and 70 unionized hourly workers, all of whom will remain at Elliott's Jeannette plant. Terms of the deal were not disclosed.
"We're not going to pick up the business and move it to China. Many companies are leaving the region, but we're doing the opposite. We're going to grow this business dramatically," said Ronald Stewart, chief executive officer of the new company, FS-Elliott Co. LLC.
Stewart said the acquisition also includes a 50 percent equity stake in a Shanghai joint venture between Elliott and Fu Sheng. The joint venture to assemble centrifugal compressors began in 1998.
Fu Sheng is the largest manufacturer of air compressors in Taiwan and the greater China region. Fu Sheng, which was formed in 1953, is publicly traded on the Taiwan Stock Exchange. The company generated sales of about $600 million last year and employs 11,000 workers in Taiwan, China and Vietnam.
Elliott officials could not be reached for comment. About 500 hourly workers at Jeannette are represented by Local 1145 and Local 1145-2380 of the United Steel Workers of America. Union officials could not be reached for comment.
Elliott manufactures gas compressors, steam turbines and related equipment for petrochemical, oil refining, oil and gas, power generation and industrial operations. It is a wholly owned subsidiary of Tokyo-based Ebara Corp. and employs about 1,500 people worldwide, including about 1,100 in Jeannette.
Stewart, 61, worked for Elliott for 38 years, mostly in Los Angeles. He said Elliott had been shopping its centrifugal air compressor division for the past year, and Fu Sheng was a logical and willing buyer. He said the deal represents Fu Sheng's first acquisition in North America.
Stewart also said Fu Sheng believes Elliott's air compressor division will provide it with the technology and capability to increase its share in certain sectors of the market and significantly boost its presence in the United States, Europe and the Middle East.
