11.06.2010 China North Industries to take over XCMG

XCMG Construction Machinery Co, China’s largest manufacturer of construction equipment, has confirmed that China North Industries Group Corp will take over the company. The agreement was signed between China North Industries and the government of Jiangsu province where XCMG is located. China North Industries will invest US$2.2 billion between 2011 and 2015 to build research and production bases for construction machinery and vehicles.

The acquisition will turn XCMG which is a local state owned enterprise into a central government led SOE, providing the company with sufficient funds for future development. XCMG makes a variety of construction machinery including front end loaders, bulldozers, graders, excavators, cranes and fire fighting vehicles. In the meantime, XCMG is selling its Caterpillar joint venture assets for US$91.9 million as the 16 year cooperation comes to an end.

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