Buffett's First Order in China Abrasives Industry

It has been two weeks since Daiwei came from Israel all the way to Dalian. He has already got down to work on the foreign soil where he is expected to usher in hope for his boss—Buffett's first industrial investment in China. -iAbrasive report

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(PRWEB) May 28, 2014

It has been two weeks since Daiwei came from Israel all the way to Dalian. He has already got down to work on the foreign soil where he is expected to usher in hope for his boss—Buffett's first industrial investment in China.

An Accident Investment
Naiwei is the general manager of IMC (International Metalworking Engineering & Production Co., Ltd) Dalian, a manufacturer of machine tool cutters. Although people are not familiar with its products, the company is paid close attention to due to the investor Buffett—"the god of stock".

Possessing a total investment of 27,850,000 dollars, IMC Dalian is expected to become Asia's largest cutter manufacturing base in aerospace and auto industries. It is quite by accident that Buffett has discovered the project.

On October 25th, 2005, Buffett received a letter from Eytan, IMC chairman which asks Buffett to acquire IMC, despite the fact that Berkshire has no experience in direct acquisition of overseas shares. Coincidentally, Buffett was looking for project investment outside America at the time, but there were little projects up to the standard of his investment principles.

When receiving an interview in Dalian, Buffett points out: "My investment principles are not evaluated macroscopically but from something more microscopically. The key of investment depends on the development of a company in five or ten years and whether the management is highly efficient and reliable."

A Satisfactory Acquisition
In May, 2005, IMC acquisition received formal approval of Berkshire's board of directors. With 4,000,000,000 dollars buying 80% of the shares, IMC has become Buffett's first overseas direct investment.

On the opening ceremony of IMC Dalian, during his talk with the mayor of Dalian, Buffett says with a smile: "Although I'm nearly eighty, I have set an objective for IMC in Dalian 'project for centuries to come'."

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