Heads of State Witness Contract Signing between Sany and Indonesian Government

At 11:00 am on April 30, Premier Wen Jiabao of China, who was on an official visit to Indonesia to attend the “China-Indonesia Strategic Business Dialogue”, and Vice President Boediono of Indonesia witnessed the signing of an investment agreement between Sany Heavy Industry of China and the Ministry of Industry of the Republic of Indonesia. According to the agreement, Sany will invest 200 million US dollars in Karawang (in the western part of Java) to build Sany’s Indonesian Industrial Park. Sany Heavy Industry has become the first Chinese company to make a large scale investment in Indonesia in the manufacturing sector.

The signing ceremony is an important part of the “China-Indonesia Strategic Business Dialogue”. More than 180 Chinese and Indonesian government officials and business representatives were present. Fifteen Chinese enterprises signed contracts with their Indonesian counterparts that day.

Liang Wengen, Chairman of Sany Heavy Industry, and Agus Tjahajana Wirakusumah, Director General of the Department for International Industrial Cooperation of the Ministry of Industry of the Republic of Indonesia, signed the agreement at the ceremony. According to the agreement, Sany’s investment will involve purchasing land, building the plant, purchasing equipment, employing local talents as well as all-round cooperation with the Metal Industries Development Center, Center for Material and Technical Products and education institutions affiliated to the Ministry of Industry of Republic of Indonesia. The project is estimated to provide about 1,500 job opportunities for the local people. “The industrial park project is expected to start 6 months after the signing of this agreement. The first-phase of the project will be completed and put into operation in no more than two years time from the signing of the agreement,” said Chairman Liang. According to the plan, when the first-phase of the project is completed, the capacity for excavators will reach 5,000 units per year.

The Sany agreement signed this time is also one of the important fruits for Premier Wen’s visit to Indonesia this April. The premier said in his speech at the “China-Indonesia Strategic Business Dialogue” that China encouraged Chinese enterprises to participate in infrastructure construction in Indonesia in various forms, including the building of roads, bridges, ports, power plants and communication facilities. We encourage and support Chinese enterprises to expand their investment in Indonesia. “I believe that entrepreneurs from both countries will seize the opportunities and work together with greater determination and courage to deepen mutually beneficial cooperation between the two countries, bilateral economic and trade cooperation and jointly create a better tomorrow,” added Premier Wen. Indonesian Industry Minister M.S. Hidayat said, “Sany Group is the first Chinese enterprise to make such a large-scale investment in the manufacturing sector in Indonesia.”

This is the second time that premier Wen Jiabao has witnessed the signing of an investment contract overseas by Sany and its overseas counterparts. On January 29, 2009, premier Wen and German Chancellor Merkel attended the signing ceremony between Sany Heavy Industry and the government of Nordrhein-Westfalen State, Germany on an investment project which was the largest made by a Chinese company in Europe. Mr. Wen commented on that occasion: “This is an important project.”

Apart from its investments in Indonesia and Germany, Sany Heavy Industry has also made many major investments in other parts of the world, including India, the US, Brazil and other countries.
(Story by Jian Yang)
 

Heads of State Witness Contract Signing between Sany and Indonesian Government

Premier Wen Speaking at the China-Indonesia Strategic Business Dialogue
 

Chairman Liang Wengen and Director General Agus Tjahajana Wirakusumah

Chairman Liang Wengen and Director General Agus Tjahajana Wirakusumah Meeting the Media