03.09.2012

Sany Palfinger joint venture to start

The Sany Palfinger joint venture is due to start operations in China some six months after the initial contracts were signed.

At the end of February this year, Palfinger and Sany Heavy Industry agreed and established two joint venture companies. The first - Sany Palfinger SPV Equipment Co - will produce and sell Palfinger products in China for the Chinese market. The second - Palfinger Sany International Mobile Cranes Sales GmbH with its registered office in Salzburg - will distribute mobile cranes produced by Sany in Europe and CIS.
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Herbert Ortner

Palfinger chief executive Herbert Ortner said: "We were hoping for a swift procedure and have already made preparations. Now that approval has been granted, operations can be started without delay. We assume that the first sales will be achieved before the year is over.”

“In China, the market for loader cranes has doubled in the past three years, from 5,000 to around 10,000 cranes in 2011. We assume that the market is going to continue to grow by about 25 percent a year. Therefore, in a few years China will have developed into our largest individual market by far."
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(L-R) Xiuguo Tang president of Sany and Herbert Ortner of Palfinger

Sany Palfinger will start selling the first two truck mounted loader crane models immediately, followed by two more before the end of the year together with the first three ‘regionally adapted’ cranes.

For the time being, production will take place at Sany’s existing plant in Ningxiang however the construction of a new plant is already being planned.

Investment over the next few years will total about €100 million. Palfinger says that in the long-term, it intends to make China its second domestic market.