Chinese construction equipment manufacturer Zoomlion on Tuesday clinched a deal to set up a joint venture plant in India with ElectroMech, India's largest industrial crane manufacturer.
He Wenjin, vice president of Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd., said the joint venture will be Zoomlion's first directly-invested overseas plant, with Zoomlion holding a 70-percent stake and ElectroMech owning the remainder.
After signing the agreement with ElectroMech in Changsha, central China's Hunan Province, He said Zoomlion has a long-term strategy in the Indian market and plans to invest 100 million U.S. dollars to bolster its business development in India in the next few years.
He said the two partners hoped the joint venture plant, which will specialize in tower crane production, will realize 50 million U.S. dollars in annual sales in five years.
Tushar Mehendale, managing director of ElectroMech, said it is a fine time for Chinese machinery producers to invest in India's heavy machinery industry, as India has planned to invest 1 trillion U.S. dollars on infrastructure construction in the next five years.
Last year, India's tower crane industry saw total revenue of 93 million U.S. dollars. Industry insiders expect the sector to maintain an annual growth rate of more than 20 percent in the next decade.
The Hong Kong-listed Zoomlion, one of the world's leading construction machinery producers, acquired Italian concrete machinery producer CIFA in 2008 to gain a foothold in the foreign market and boost its overseas sales.
He Wenjin said Zoomlion will continue looking for overseas merger and acquisition opportunities in the future.
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