Liugong finalises HSW acquisition
10 January 2012
Chinese construction equipment manufacturer Liugong has finalised its acquisition of Polish dozer specialist Huta Stalowa Wola (HSW) and its distribution subsidiary Dressta. The proposed purchase of the Polish state-owned company was first announced in March 2011, and the two companies have since been negotiating wages and job security with the Polish Workers' Union, as well as commercial terms.
Commenting on the acquisition, Liugong CEO Zeng Guang'an said, "This deal further solidifies the strong ties between our two countries, as Poland and China are long term trading partners and we have more than 60 years of excellent relations. This agreement signals a new era of expansion for both Liugong and HSW."
HSW's portfolio includes dozers from 74 hp to 520 hp (55 kW to 388 kW), and Liugong says it is one of only seven manufacturers worldwide to manufacture a complete dozer range. In addition to these machines, Liugong will gain a manufacturing and logistics footprint in Europe, and the company has previously said it will build other products from its current range at the HSW factory for sale in Europe.
David Beatenbough, currently Liugong's vice president of research & development has been named chairman of the board of the new entity, Liugong Machinery (Poland). "We will acquire proven technology within the bulldozer segment as we will now own all the technology and designs, including undercarriages and driveline components," he said.
Liugong also said the acquisition represented a "Smart strategic step" towards its goal of becoming one of the world's ten largest construction equipment manufacturers by 2015. Last year it sold 75000 machines and is thought to be the largest wheeled loader manufacturer in the world. It is also one of China's biggest equipment exporters, with some 280 dealers in 95 countries, backed by nine regional sales subsidiaries and ten parts warehouses. It operates 22 factories in China and one in India, with a total staff of more than 13000, including 750 engineers.
HSW was founded in 1937 and manufactures crawler dozers as well as some wheeled loaders, loggers pipe layers, conveyor belt shifters, graders and landfill machines from its plant in Podkarpackie province in southwest Poland.