Demag in joint venture with Chinese crane manufacturer

Demag Cranes has established a joint venture with Weihua, one of China’s largest crane manufacturers. The joint venture Demag Weihua (Liaoning) Material Handling Machinery Co. Ltd. will be responsible for the development and production of components and parts for cranes and hoists in the mid-market segment. Demag Cranes will hold 51 percent of the company; Weihua will have a share of 49 percent.

The joint venture will have two production plants located in Kaiyuan and Shanghai. In Kaiyuan, a city in the north-east province Liaoning, the joint venture will manufacture components, motors and parts for gearboxes. Final assembly of mid-price segment products (so-called Bas products), such as rope and chain hoists, crane end carriages, drive systems and light-crane systems, will take place at the plant in Shanghai, where the head office of the Chinese regional subsidiary of Demag Cranes is located. The development activities for mid-price segment products will be merged and further strengthened in Shanghai.

In recent months, Demag Cranes has launched its Bas products for the mid-market segment in China and India. These products are based on proven European engineering standards and are designed to meet the exact needs of customers in emerging-market countries. The joint venture will be responsible for manufacturing the Bas products that the two shareholders Demag Cranes and Weihua will offer via their own established sales channels.

Aloysius Rauen, CEO, Demag Cranes AG, said: “We are combining the expertise of two strong partners in our joint venture. This will enable us both to benefit from the broad range of Bas products with the globally recognised Demag brand name and Weihua’s strong presence in China. Weihua and Demag Cranes will continue to expand their positions in dynamically growing market with the new joint venture.”

Han Xianbao, chairman and president of the Weihua Group, said: “The establishment of our joint venture marks a further milestone in our growth strategy.”