Bulten AB is divesting automotive factories in the EU and China to cut capital costs and refocus the Swedish fastener manufacturer towards distribution and value-added services.

The company agreed to divest its European automotive contract manufacturing operations to Swedish investment firm Maelir AB, and its automotive contract manufacturing operation in Tianjin, China, to an investor group led by Kaikai Chen.

“Automotive will remain an important part of Bulten’s business, while the Group increases its focus on areas such as C-Parts management, sourcing and trading, distribution, value-added services and precision manufacturing,” the company stated.

The EU transaction encompasses two sales and service companies in Sweden and Romania and the four legal entities located in Hallstahammar, Sweden; Bergkamen, Germany; and Bielsko-Biała and Radziechowy, Poland.

The divestment would reduce Bulten’s annual net sales by 38%. The divested companies employ approximately 1,000 people and include the customer relationships and contracts managed by the businesses within the automotive OEM and supplier segments.

The EU transaction is expected to close in October.

Bulten will retain its FSP business in the United Kingdom and the related commercial relationships. As part of the transaction, Bulten and Maelir will enter into a supply agreement covering selected products for the retained UK business.

In China, Bulten agreed to divest Bulten Fasteners (Tianjin) Co., Ltd., its contract manufacturing operation for the automotive industry in Tianjin, China. Bulten Fasteners (Tianjin) generated revenue of $12.9 million in 2025 and had approximately 86 employees.

The China transaction is expected to close in August.

The news comes five months after Bulten decided to shutter its factory in Streetsboro, OH, focusing its U.S. operations on a pure distribution model.