Mar. 1, 2012 (China Knowledge) - Sany Heavy Industry Co Ltd<600031
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, capital of Hunan
Province with a total investment of RMB 900 million or US$143 million.
The 50-50 JV, named Sany Palfinger SPV Equipment Co, will have a registered capital of RMB 300 million, said the Chinese side in a statement filed with the Shanghai Stock Exchange
Palfinger noted the JV will start this year and become fully operational by 2013.
Sany Heavy and Palfinger will also invest EUR 4 million or US$540 to launch another JV Palfinger Sany International Mobile Crane Sales GmbH in Salzburg, Austria to focus on the sales and services of the Chinese firm's cranes in Europe. The JV would be fully operational by the end of this year.
China is expected to become Palfinger's largest market within the next five to six years in spite of slower construction growth in the country, said Palfinger CEO Herbert Ortner.
Earlier this month, Shanghai
and Hong Kong-listed
Sany Heavy announced its first overseas acquisition of German engineering firm Putzmeister Holding GmbH for EUR 360 million.