Chinese giant XCMG takes German Schwingby CW Staff on Apr 24, 2012
Chinese construction company XCMG Group has confirmed that is on a ‘smooth path’ to acquire German concrete equipment manufacturer Schwing Group.
The company says the acquisition of Schwing will allow it to “make inroads into the international markets for brand concrete equipment,” with XCMG wishing to rapidly develop its concrete equipment.
Schwing manufactures a range of concrete equipment, including concrete pumps, recyclers, truck mixers and accessories.
The Schwing brand will remain globally, with XCMG heralding the acquisition as “yet another solid step of China’s efforts towards its construction machinery internalisation“.
It follows on the heels of Sany Group’s acquisition of German industrial company Putzmeister in January this year.
Xugong Construction Machinery Science & Technology (XCMG) reported annual revenue of $13.8 billion in 2011, making it the third largest heavy machinery manufacturer in China, behind Sany and Zoomlion.
XCMG has said it wants to be in the top three in construction machine sales in the world by 2015, and it recently set up a manufacturing facility near Rio de Janeiro in Brazil.
Chinese companies have expanded internationally in the past few years, and the country is currently the second biggest producer of construction machinery in the world, behind the United States.
While companies globally saw significant growth between 2005 and 2007, Chinese firms were relatively unaffected by the Global Financial Crisis (GFC), with the Chinese construction sector continuing to grow.
Acquisition of European firms by Chinese companies flush with cash is seen as a way to tap into mature markets.
Schwing was established in 1934, and was privately owned.
The company has production bases in countries including the US, Austria, India, Brazil, and team of business agents in more than 100 countries.
According to XCMG, the two players are pressing ahead for official approval of the deal after their formal execution of all the agreements.
- Oman-Saudi road completed using 95 Volvo units
- FAST Consortium announces Riyadh Metro milestone
- Qatar Holdings loses $4.5bn in Volkswagen scandal
- Caterpillar could cut 10,000 jobs by 2018
- UAE's Al Futtaim to build 3.4ha Auto Park in Dubai
- Qatar's $40bn planned transport projects on track
- Video: 1,028 evacuated after Saudi hotel fire
- Saudi: Wind caused Grand Mosque crane collapse
- 2nd Robotic Technology Exhibition set to kick off
- First batch of Qatar Foundation's trams arrives