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Editor's Comment: Chinese acquisitions in Europe

17.05.12

The year started with the news that Liugong, one of the largest and well-respected equipment manufacturers in China, has finally sealed its acquisition of Polish dozer manufacturer HSW. The deal has had a long gestation, with Liugong first announcing it in March 2011, and it says the intervening time was spent agreeing not only commercial terms, but also negotiating with unions.

As painful as the process sounds, the acquisition looks like it will be well worth it for Liugong. It gives it many of the things that Chinese manufacturers with global ambitions lack at the moment - a factory in Europe along with distribution, logistics and parts & services infrastructure, not to mention a new range of products to add to its portfolio. With Liugong already having developed machines that meet the European Stage IIIB engine emissions requirement, it is now well placed to start making machines in serious numbers for sale in Europe.

Source: KHL Group

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