XCMG acquires majority stake in Schwing Stetter

Chinese manufacturer XCMG has bought a majority stake in privately-held German manufacturer Schwing Stetter.

Schwing confirmed that the deal had taken place during the Intermat show, but details on the percentage of shares now held by XCMG were not released, other than the fact that it represented a majority stake.

The companies confirmed that the Schwing Stetter brand will remain, and Schwing Stetter chairman Gerhard Schwing will also remain in his current position.

Alfonso Urzola, manager of international services at Schwing Stetter, said production would continue as normal at the company.

"The plan is to increase the sales of pumps in China through this partnership," Mr Urzola said.

Schwing Stetter is based in Herne, Germany. Founded in the 1930s, it has production bases all over the world including the US, Austria, India and Brazil, as well as sales and service centers in counties including France, the Netherlands, Austria, Czech Republic, Sweden and South Korea.

The company produces equipment for the concrete industry including concrete boom pumps, truck mixers and batching plants.

The news comes after Chinese equipment manufacturer Sany acquired family-owned German pump producer Putzmeister at the end of January.

This deal will also see Putzmeister continue to operate with a high degree of independence, while Sany focusses on its operations in China, where Putzmeister will be presented as a premium brand.