SCHWING and XCMG announced strategic partnership [20 July 2012]

Chinese construction equipment manufacturer Xuzhou Construction Machinery Group (XCMG) completed the acquisition of a majority stake in German concrete machinery manufacturer SCHWING Group. The deal, which had been under discussion since April this year, had been completed on July 6. Post acquisition, XCMG holds a 52 per cent stake in SCHWING Group. For XCMG, it is another international acquisition project after it successfully acquired Germany’s FT and Holland’s AMCA.
“XCMG and SCHWING will carry out more intimate strategic cooperation, implement resources integration and coordinated operation, optimise resources allocation, and share and utilise resources in the aspect of R&D, technology, purchasing, sales and financial leasing so as to create the largest synergy effects, further increase the competitive strength and the market share of the products of XCMG and SCHWING, and achieve win-win development,” a statement released by XCMG states.
"The merger of SCHWING and XCMG is a major step forward in the development of both our companies,” said Wang Min, the Chairman of XCMG. "SCHWING is a world-class manufacturer of concrete machinery with a broad product range and leading technology. Together, we will win important market shares in global construction machinery."
According to Gerhard Schwing, CEO of SCHWING Group, “SCHWING will gain access to the Chinese growth market and XCMG will benefit from improved market coverage outside of China and extend its product range in the premium segment.”
The partners have agreed to secure SCHWING's German production sites until 2017. The SCHWING management under CEO Gerhard Schwing would continue to act independently from Herne, Germany going forward.

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