The joint venture between Palfinger and Sany to manufacture and distribute each others' products has been approved by the relevant authorities.
"We were hoping for a swift procedure and we have already made preparations. Now that approval has been granted, operations can be started without delay. We assume that the first sales success will be achieved before the year is over," said Herbert Ortner, Palfinger CEO.
The agreement, established in late February this year, represents two joint ventures, under which Sany Palfinger SPV Equipment Co., Ltd., will produce and sell Palfinger products in China for the Chinese market, and Palfinger Sany International Mobile Cranes Sales GmbH, will distribute mobile cranes produced by Sany in Europe and CIS.
In China, the market for truck mounted cranes has doubled in the three years leading to the end of 2011, from 5,000 to about 10,000 units, said Ortner. "We assume that the market is going to continue to grow by approximately 25 % each year. Therefore, in a few years, China will have developed into our largest individual market by far."
Sany Palfinger will start selling the first two truck mounted telescopic crane models directly after its foundation. Before the end of the year, two additional models will follow and the first three regionally adapted crane models will be launched on the market.
For the time being, production will take place at the existing Sany plant in Ningxiang, with the construction of a new plant being planned. Investments in the next few years will amount to some €100 million, said Palfinger.