Konecranes has signed a letter of intent and entered into exclusive negotiations concerning the potential acquisition of the majority of Jiangsu Three Horses Crane Manufacture Co. Ltd. (SANMA), a Chinese hoist and crane manufacturer. The parties target to complete negotiations and sign a definitive agreement in early 2009.
SANMA is currently owned by its management. If the parties reach an agreement and the deal is realized, SANMA will be converted into a joint venture company. The letter of intent was signed on November 23, 2008.
SANMA is based in Jingjiang, about two hours northwest of Shanghai. SANMA is one of the leading local hoist brands in China. Its net sales were approximately MEUR 15 in 2007 and it has more than 500 employees. The company is known for deep and long-term customer relationships and it has a wide distribution network in China. The company produces thousands of hoists and hundreds of cranes per year.
“Once realized this joint venture will strengthen our position and competitiveness on the huge Chinese market,” says Harry Ollila, President, Konecranes Region Northeast Asia. “At the same time, Konecranes would be able to expand sales and increase supplier and procurement activities in the country.”
The final agreement is subject to inspection and approval by Chinese authorities.
Further information:
Harry Ollila, President, Northeast Asia
e-mail: [email protected] or phone +86 13 788 903 876
Mikael Wegmüller, Director, Marketing and Communications
e-mail: [email protected] or phone: +358 20 427 2008
This press release is available at our website www.konecranes.com
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. In 2007, Group sales totaled EUR 1,750 million. The Group has 9,600 employees in more than 470 locations in 43 countries. Konecranes is listed on the NASDAQ OMX Helsinki Ltd (symbol: KCR1V).
www.konecranes.com
