16.09.2013

Shantui quits planned Manitowoc JV

Shantui has pulled out of its agreed joint venture contract for Manitowoc’s Dong Yue truck crane business in China. Click here to see Manitowoc and Shantui form mobile crane JV

In terminating its agreement to form the joint venture, Shantui cited China’s economic restructuring and the sharp decline in the construction machinery market in China, which has adversely impacted its business. It has also affected government investment policies and investment ideas for the construction industry, which has led to delays in obtaining the necessary governmental approvals for the joint venture.

Manitowoc chief executive Glen Tellock said: “We are disappointed with Shantui’s decision and the fact that the Chinese government did not act to timely approve our potential joint venture as we believed that there was enormous potential presented by the successful collaboration of Manitowoc and Shantui in the truck crane industry. In the meantime, we will evaluate our options with our current partner, Tai’an Taishan Heavy Industry Investment, with respect to the future of the Manitowoc Dong Yue business.”