Metso and Guangxi Liugong Group Co. Ltd (LiuGong) have obtained all necessary approvals from the Chinese authorities for a joint venture between the two companies. Liugong Metso Construction Equipment (Shanghai) Co. Ltd will be headquartered in Shanghai and will combine Metso's expertise in track-mounted crushing and screening business and technology with LiuGong's customer service and manufacturing capabilities.
The initial scope of the joint venture will cover the design and manufacture of localised versions of Metso's Lokotrack mobile crushers and screens, the first of which is expected to be launched during H1 2014. The products will be sold under the dual branding: LiuGong Metso. The joint venture will also promote Metso's global track-mounted crushing and screening equipment in China.
The value of the investment made in the new company will not be disclosed.
Commenting on the deal, João Ney Colagrossi, president of mining and construction at Metso said: The joint venture enables the capture of a significant market share of the fast growing mobile crushing and screening market in China. Our target is to build a market driven technology offering and the joint venture with LiuGong is a major step towards this direction. Together with the acquisitions of the steel foundry in Quzhou City and Shaorui Heavy Industries Ltd announced last year, the joint venture significantly strengthen our supply capabilities for mining and construction industries in China."
Adapted from press release by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/handling/17022014/metso_and_liugong_form_joint_venture_targeting_chinese_market_for_mobile_crushers_and_screens_coalnews524/