12.03.2008

Manitowoc buys into China.

Manitowoc Crane Group has formed a joint venture with the shareholders of TaiAn Dongyue Heavy Machinery. for the production of truck-mounted hydraulic cranes.

The joint venture, which will be 50 percent owned by Manitowoc is located in TaiAn City, Shandong Province, China, approximately 300 miles south of Beijing. Terms of the transaction have not yet been disclosed.

TaiAn Dongyue was founded in 1972 and has a new, 57,000 square metre (614,000 ft), purpose-built facility similar in size to the Grove plant in Shady Grove.

The facility is located in a modern industrial park with over 900 employees, experienced in the manufacture and assembly of hydraulic truck mounted cranes for the Chinese market. The company has a product line of 10 models, ranging from eight to 50 tonnes in capacity.

Eric Etchart, president of the Manitowoc Crane group said: "This transaction solidifies Manitowoc's position in one of the world's fastest-growing construction markets. By acquiring a joint venture interest in TaiAn Dongyue, Manitowoc furthers its mission of bringing manufacturing and service closer to the customer. With growing demand for infrastructure and industrial expansion, this joint venture is an excellent addition to our manufacturing base and our global reach."

Liu Rubin, chairman of TaiAn Dongyue said: "Our people and the local community are very pleased to form this partnership with one of the world's leading crane companies. We are very impressed with Manitowoc's commitment to not only its customers, but to its people, providing training and support around the world."

China is the world's largest market for hydraulic cranes in unit terms, representing around 70 percent of the world production in 2006, mostly 25 tonne and under truck/carrier mounted models.

Current law in China prohibits a foreign company from purchasing more than 50 percent of a truck mounted crane manufacturer, due to the classification of such cranes. This is likely to change in the future leaving Manitowoc free to increase its holding.

The move follows Terex’s purchase of Sichuan Changjiang Engineering Crane Co based in Luzhou, Sichuan Province, China in 2006.