Schwing and XCMG Partner
SCHWING and Xuzhou Construction Machinery Group Complete Strategic Partnership
• Official signing in the Zeche Zollverein in Essen, Germany
• Strategic combination of the German and Chinese market leaders creates opportunities for global growth
• XCMG acquires majority holding in SCHWING
• The partners agree to secure the German sites until 2017
Herne, 06 July 2012. SCHWING Group (“SCHWING“), an internationally leading system supplier for concrete machinery in the premium sector, and Xuzhou Construction Machinery Group (“XCMG“), China’s leading construction machinery manufacturer, have today sealed the strategic partnership they had announced in April. Gerhard Schwing, CEO of SCHWING and Wang Min, the Chairman of XCMG, signed a contract to this effect in Essen. Under this agreement, XCMG is acquiring a majority of the shares in SCHWING. The documents were signed in a festive setting in Essen’s Zeche Zollverein in the presence of Zhu Min, Mayor of Xuzhou, and Horst Schiereck, Mayor of Herne
“The merger of SCHWING and XCMG is a major step forward in the development of both our companies“, says Wang Min, the Chairman of XCMG. “SCHWING is a world-class manufacturer of concrete machinery with a broad product range and leading technology. Together, we will win important market shares in global construction machinery.“
“XCMG and SCHWING complement each other perfectly“, says Gerhard Schwing, the CEO of SCHWING. “SCHWING will gain access to the Chinese growth market and XCMG will benefit from improved market coverage outside of China and extend its product range in the premium segment.”
Together, the two companies will further strengthen their global presence and their production, service and distribution network. The parties agreed on confidentiality on the financial details of the transaction. SCHWING and XCMG have decided to secure the German operations for at least five years. The SCHWING management under CEO Gerhard Schwing will continue to act independently from Herne going forward.
SCHWING Group (SCHWING) is the international leading manufacturer of premium concrete machinery with its headquarters in Herne, Germany. The group’s portfolio covers the entire scope of concrete machinery technology. These include supplementary quality machinery for the production, transport, placing and recycling of concrete. SCHWING GmbH is the parent company of Stetter GmbH that is specialized in batch plants and truck mixer. SCHWING Group has about 4,000 employees 1,000 of which are working in Germany. Since 1980, Gerhard SCHWING, the company founder’s son, is CEO of the company.
Xuzhou Construction Machinery Group (XCMG) is the seventh biggest in the world and keeps the first position in China construction machinery industry for 23 straight years. The listed company is headquartered in Xuzhou, China, and offers a broad product range, especially machinery for construction and maintenance of roads, and heavy-duty trucks, special purpose vehicles, cranes and earth-movers. China is the core market of the group – additionally, the company exports its products in about 130 countries. XCMG employs more than 21,000 people. The company aims to become one of the top three construction machinery producers in the world.
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