30.11.2005

Tadano increases holding in China joint venture

Tadano has announced that it is investing $10 million to increase its shareholding in its Chinese joint venture, BQ-Tadano (Beijing) Crane Co Ltd. In which it is a minority partner with Beijing Jingcheng Construction Machinery Co, Ltd (BJCM).

The $10 million will be used to increase the company’s paid up capital from $20 million to $30million which will boost Tadanos holding from 25 to 50 percent. As part of this investment the management will change in January, with Seiji Tadano taking over as president from Yuan Xiaofeng, a BJCM employee.

Tadano aims to expand Tadano’s market share of the Chinese truck crane market. Seiji Tadano will assume full responsibility for the business in order to further improve and strengthen its manufacturing, sales and service activities.

Demand in China for construction cranes has grown rapidly over the past few years, from 4,000 units in 2001, to 6,300 in 2002, 9,500 in 2003 and 11,500 in 2004. A modest slowing is forecast for 2005, to around 10,000 units.

Tadano says that 90 percent of the market comprises 25 tonne or under, domestic truck cranes.

BQ-Tadano currently employs around 300 staff and will complete 323 cranes in 2005 with a sales value of 200 million RMB.(£14.3/$24.8 million).