● China-based SanyPalfinger will manufacture and sell Palfinger knuckle boom cranes in China.
● Austria-based PalfingerSany will distribute wheeled mobile cranes produced by Sany in the world market outside China.
● Sany leads the Chinese construction equipment market.
● Palfinger is the market leader and innovator of knuckle boom cranes.
On Feb 28th, Sany Changsha Industrial Park witnessed another wave of internationalization. CEO of Palfinger Herbert Ortner, President of Sany Group Tang Xiuguo, GM of Sany Mobile Cranes Qi Jian and other senior managers attended the signing ceremony. Sany and Palfinger will each hold a 50% share in the two new joint ventures. The merger has received approval from related authorities.
Sany-Palfinger Equipment Co., Ltd. (Sany-Palfinger) will build new factories near Ningxiang Business Unit of Sany Heavy Industry for R&D, manufacturing and sales of special vehicle equipment such as knuckle boom cranes in both Chinese and global market while Palfinger-Sany Mobile Crane International Sales Co., Ltd. headquartered in Salzburg will distribute wheeled mobile cranes produced by Sany in Europe, America and Commonwealth of Independent States like Russia.
Ortner said, "With the establishment of these two joint ventures, we have taken a big step forward in our internationalization strategy. We now have manufacturing and assembly plants in all of the world's major markets. With Sany we have a partner that is not only one of the fastest growing companies in the world, but one that meets our high quality standards as well. China will become our second domestic market. By enabling our partners outside China to distribute Sany mobile cranes we are giving them a valuable addition to their range of products."
Liang Wengen, Sany Heavy Industry chairman, said, "For Sany, this close co-operation with Palfinger is a major step towards tapping the global market. We are looking forward to our co-operation with a partner that is a technology and market leader and whose customer proximity and comprehensive services are highly appreciated by its customers. We are fully convinced that these two joint ventures will swiftly achieve success, thereby making a significant contribution to the rapid and sustained growth of Sany."
Sany enters the market of knuckle boom cranes
The Changsha-based Sany-Palfinger will be specialized in developing and producing knuckle boom and straight (stiff) boom loader cranes to mount on trucks. Based on Palfinger’s cutting-edge technologies and Sany's sales network, Sany-Palfinger will market its product aggressively in Chinese market, aiming at 30% of market share in long term.
In 2010, a total number of 9,000 folding-jib cranes and telescopic cranes were manufactured in China, accounting for 20% annual growth. It is expected that by the time of 2017, over 30,000 lorry-mounted cranes would be made in China, which means over 50% lorry-mounted crane market would be taken over by Chinese product.
Sany-Palfinger will start its trial operation in 2012, and will enter fully into operation phase in 2013. Palfinger’s other products, including container handling system, tail lifts and aerial work platform will be included into Sany’s manufacturing and sales system.
The cooperation with Palfinger is an important strategic move for Sany in the global crane market. It will certainly help both parties in various aspects, including upgrading the innovative ability, manufacturing technology, management, sales and brand image in the global market. The merger marks another historical step of Sany’s globalization.
Both parties promised that the joint ventures would comply with Corporate Governance Regulation of Austrian government. The financial statements of Sany-Palfinger will be published according to international financial reporting standards and Chinese accounting standards.
Note:
Palfinger was established in 1932 and is the world’s leading manufacturer of hydraulic lifting, loading and handling systems. It owns more than 1,500 sales and service office in 180 countries. The company has been the market leader of truck mounted knuckle-boom crane. In 2011, Palfinger hired over 6,000 employees and its annual sales reached 850 million Euros.
