Senior Engineering is set to spend £6.2m acquiring 20% of Techno Flex, a Japanese manufacturer of metallic hoses, bellows and expansion joints.
The deal gives Senior’s Flexonics division a way into the Asian market following the acquisition of US-based Jet Products last year.
Techno Flex manufactures in China, Vietnam and Japan and sells to industrial and utility customers in Japan and other Asian countries.
Privately-owned Techno Flex, which has 680 employees, made a profit of about £3.5m on sales of around £28.1m in the year to March 1998.
Senior’s shares edged down 0.5p to 146p on the news.