Chinese construction machinery manufacturer Xuzhou Construction Machinery Group (XCMG) completed acquisition of a majority of the shares of concrete machinery maker Schwing Group. Gerhard Schwing, CEO of Schwing, and Wang Min, chairman of XCMG, signed a contract to this effect in Essen, Germany. 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. “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. “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.”
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.