Sinomach to head Terex Changjiang JV

Sinomach will take on a controlling stake in the new joint venture setup for the truck crane business, with Luzhou Shenli surrendering over half of its 50% stake, leaving Terex the larger of the two minority shareholders in the business.

A subsidiary of China’s largest machinery manufacturer, the state-controlled China National Machinery Industry Corporation, Sinomach is experienced in acquiring and reorganising Chinese engineering machinery businesses under the umbrella of its parent company.

It currently owns 28 holding companies and share-holding companies and has established joint ventures with international firms such as Hyundai, Komatsu and Martec.

Terex hopes that the extra investment will help Sichuan Changjiang Engineering Crane Co (SCE) to gain a stronger foothold in the Chinese market while simultaneously expanding opportunities for overseas sales of its Changjiang truck crane products.

Sinomach already has a strong focus on developing its international business prospects, having acquired agricultural machinery component manufacturer McCormick France last year and showed interest in investing in a 50 sq mile technology zone in Idaho, US.

With SCE’s current product line of 8t–160t truck cranes soon to be augmented by cranes also suitable for markets outside China, such as Terex’s new Toplift series of truck cranes, Terex believes Sinomach’s global network of sales channels and international project opportunities will serve the joint venture well.

Since announcing the joint venture with Sinomach, Terex has also announced the intention to raise funds through the issue of $300m in unsecured notes. The company says the sum raised will be used for “general corporate purposes”, including the servicing of the domination agreement entered into with Demag Cranes and the continuing integration of the same into Terex.