Feb. 2, 2012 (China Knowledge) - Guangxi Liugong Machinery Co Ltd<000528>, which is engaged in the production and sale of engineering machinery and related products, has inked an agreement to acquire the construction machinery unit of Poland's Huta Stalowa Wola or HSW for around RMB 335 million.

Pursuant to the agreement, Shenzhen-listed Guangxi Liugong Machinery will own intellectual property rights and trademarks of the HSW's unit, and intends to build plants as well as research and development centers in Poland.

The Chinese buyer also expects to sell products directly to Europe and North America via the Polish company, said a person familiar with the matter, adding that the acquisition is scheduled to complete in mid-February.

Last January, Guangxi Liugong Machinery started the takeover offer of HSW with a quoted price between RMB 228 million and RMB 605 million.

Guangxi Liugong Machinery currently has a network of 119 distributors and 881 sales outlets in more than 80 countries with nine subsidiaries overseas.