The company said the new joint venture, to be know as JC Tadano, will make and sell hydraulic components for construction machinery, with the aim of further improving the quality of cranes built by BQ-Tadano. BQ Tadano was the company’s first Chinese joint venture, and manufactures telescopic boom cranes.
The new venture will also supply the two other Japanese investors, components firms Mimura and Murakami.
The new joint venture was established with capital of $2.5m. Tadano supplied 50% of the initial investment, Jing Cheng 40%, and Mimura and Marukami 5% each. Jing Cheng will build a new 8,500 sq m plant, on a 13,000 sq m site, which will be leased to the joint venture.
The venture will employ around 1,000 people and is expected to deliver revenues of RMB31.7m ($4.26m), going into the black in full year 2009.
