XCMG closes Schwing acquisition

Chinese construction equipment manufacturer Xuzhou Construction Machinery Group (XCMG) has closed its acquisition of a majority stake in privately held German manufacturer Schwing Group for an undisclosed sum.

The deal, which had been under discussion since April, was completed on July 6, 2012 in Essen, Germany. XCMG now holds a 52% stake in the European manufacturer of concrete machinery.

According to the two firms the new strategic partnership will create opportunities for global growth. XCMG currently exports to 130 countries.

As part of the deal, Schwing's German production sites have been secured until 2017 and the company's management, under CEO Gerhard Schwing, will continue to act independently from Herne, Germany going forward.