Terex acquires Changjiang Crane, China

With a production of 1,000 units of truck cranes ranging from 8 US tons to 160 US tons capacity, Changjiang Crane is the third largest truck crane manufacturer in China, Terex Cranes president Steve Filipov told Cranes Today, after XCMG and Zoomlion.

“China is the biggest truck crane market in the world – 10,000 units – so it is of definite interest to the crane business and Terex more specifically. We have been looking at a few people to work with and I am happy that we were able to join with Changjiang,” Filipov said.

He said Terex planned to grow the business with two strategies. “The first is growing it in Asia – not only in China, but in other Asian countries, and then exporting the product into the Middle East, and maybe a few years down the road into other Western markets, but that will take time as we transfer technology.

“The other growth strategy is bringing some of the technology from Demag and PPM to the Chinese market to grow that market into larger all terrain and truck crane technology.”

Filipov said Terex also planned to use the Chinese company as a source for components: “Over time we hope to utilise its supply chain to help improve our component costs globally. We plan to apply engineering and operational resources to help Changjiang Crane accelerate its product and manufacturing development.”

The senior management of Changjiang Crane will own the remaining 50% interest in the company, which employs 1,600 people. The current CEO of Changjiang Crane, Wang Li, will remain in that position.

Chinese law prevents foreign companies from owning more than 50% of companies that produce on-highway vehicles, including truck cranes. However, Filipov said: “I would say we have acquired 100 per cent, but we have only done 50 per cent of the deal, which is what the law will allow. When that law changes we will acquire the additional 50 per cent.”

The chief executive officer of the Chinese manufacturer, Wang Li, will remain in position. He said: “We look forward to the additional growth and development of Changjiang Crane as the newest member of the Terex Cranes family.”

Terex Corporation chairman Ron DeFeo added: “If you look at China, 300 million people live along the coast. That is the interesting part because it is pretty well developed – Shanghai is a modern city. The average income in Shanghai – which is the highest income per capita province in all of China – is $4,500 per year per person. If you go west in China the average per capita income is $700, a dramatic difference. So the opportunity to develop China is in the West.

“One of the biggest issues for the government of China is to make the lives of their people better, and to do that they really need to develop industry, and we will be very happy to participate in that development. We have a significant commitment to the Chinese market underway. You either participate in the market or eventually they will put you out of business.”