China Trade Information

Xuzhou Construction Machinery Group Co Ltd (XCMG), China’s largest manufacturing and export concern for heavy construction machinery, plans to withdraw from its joint venture with the U.S.-based heavy machinery giant Caterpillar Inc, the China Securities Journal cited its chairman Wang Min as saying.

The Jiangsu province-based company plans to sell out its 15.87% stake in Caterpillar Xuzhou Ltd, which is producing the world-class hydraulic excavators, the source said. It is mulling setting up a wholly-owned foundry for excavators with an initial investment of RMB 200 million.

No comments from Caterpillar are available to date. An unnamed insider at its China office disclosed Caterpillar is in talks with XCMG on future cooperation.

Founded in 1989, XCMG is primarily engaged in the production and sale of road roller, loader, truck crane, forklift, covering 36 different categories and 250 types of products.

Tags: export, investment, machinery

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