01.12.2005

Aerial to build in China

The Tanfield Group has signed a memorandum of understanding for a joint venture agreement with a Chinese access equipment manufacturer, Wuhan Fachman Industrial Limited.

Under the terms of the agreement a joint venture company, Aerial Fachman, Limited will be established in China, and will manufacture and market certain products from the range of Aerial access equipment.
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An Aerial trailer lift

Whilst initially targeting the fast growing Chinese market, the Tanfield group may ultimately source equipment for certain export markets, from the joint venture company, particularly where shipping costs make it advantageous to do so.

Vertikal Comment

China is still a market that has yet to get started, and probably some years off doing so. When it does, basic products that are easy to transport such as trailer lifts are likely to prove popular. Tanfield and Aerial access have an excellent opportunity here by getting in early with an existing manufacturer.

They say timing is everything, will this move prove to be too soon, or will the early start provide a solid learning curve ready for the time when the market is ready to take off.

The fact that the joint venture is with a powered access producer makes all the difference, as long as Tanfield is patient and does not have overly high expectations for the short term, it should prove to be a significant coup in the long run..