FRANKFURT, April 19 China's Xuzhou Construction
Machinery Group (XCMG) has agreed to take a majority stake in
privately-held German machinery manufacturer Schwing as Chinese
companies race to get their hands on German industrial know-how.
The German concrete pump maker, which is one of the world's
leading suppliers in its field, did not disclose a price for the
investment in its statement on Thursday. Reuters first reported
a deal was imminent on March 23..
"The premium brand Schwing is a central part of our
strategic development," XCMG head Wang Min said in the
statement, which also said the German management would remain in
The deal follows a series of similar tie-ups this year in
which Chinese firms have scooped up German groups to get their
hands on technology, brands and a worldwide distribution
In March, German car parts maker Kiekert said it was being
bought by Chinese peer Hebei Lingyun..
In January, China's Sany Heavy Industry said it
would buy Schwing peer Putzmeister in a 360 million euro ($472
million) deal, and LDK Solar invested in German solar
Schwing's concrete pumps are being used to build the new
high-rise building of the European Central Bank in Frankfurt,
Dubai's exclusive Jumeirah Beach Residence and New York's One
World Trade Center.
Schwing, owned by the Schwing family, posted sales of about
400 million euros ($525 million) in 2010 and saw revenue rise by
a double-digit percentage last year. It also posted a profit in
2011. The group has not disclosed more recent figures.
The Herne, Germany-based company employs about 3,300 staff,
but is cutting 160 jobs after its sales dropped by 30 percent
amid the economic crisis. After the investment by XCMG no
further job cuts are planned, a spokesperson said.
Rothschild advised Schwing on the deal.