100 million euros invested in building European R & D and manufacturing base
China's largest industry investment in Europe
On January 29, Premier Wen Jiabao, on a visit to Germany, attended, together with German Chancellor Merkel, the signing ceremony for the investment agreement between Sany and the North Rhine-Westphalia government held at the Chancellery at 1 p.m. local time. According to the agreement, Sany Heavy Industry will invest 100 million euros in building an R & D center and machinery manufacturing base in Colon, North Rhine-Westphalia, China's largest-ever industry investment project in Europe.
Chinese premier and German chancellor witness the signing ceremony
Liang Wengen shakes hands with premier of North Rhine-Westphalia following the signing ceremony
Premier Wen Jiabao and German Chancellor Merkel amiably shake hands with Liang Wengen and Xiang Wenbo
The photo shows Rutgers, premier of North Rhine-Westphalia and Sany's senior management.
The R & D center and machinery manufacturing base Sany Heavy Industry invested in Colon will cover the entire European market. The project, with a planned investment of 100 million euros, a return on investment of 27.75% and a recovery period of 6.93 years, will bring about an annual output of 3,000 construction machines, and is expected to achieve an annual sales income of 350 million euros and a total profit of 48.02 million euros. Having purchased major parts like automotive chassis, oil pumps and engines from Europe, Sany Heavy Industry established the manufacturing base and sold its products locally in a bid to save high transportation expense, further take advantage of internationalized allocation of advanced resources, further sharpen Sany s core competitiveness and the influence of its international brands, and expand its share of the European market.
With an aim to deepen economic cooperation between the two countries, during the visit of Premier Wen Jiabao to Germany, the Chinese and German governments signed a total of six investment projects, of which Sany's investment project is the only China's investment in Germany. Both governments attached great importance to Sany's investment project in Germany, and specially held the signing ceremony at the Chancellery. Liang Wengen, board chairman of Sany and Rutgers, premier of North Rhine-Westphalia signed on behalf of both sides. Premier Wen and German Chancellor Merkel jointly witnessed the signing ceremony, at which Premier Wen said gladly, "It's a great project!"
Following the signing ceremony, Chairman Liang Wengen and President Xiang Wenbo were invited to the welcome banquet held by German Chancellor Merkel for Premier Wen.
With the development and of Chinese construction machinery in the international market in recent years, further going global and investing in building plants in Europe and America developed in construction machinery technology have become a major internationalization strategy of Sany. Besides the investment in Germany, Sany's invested US$60 million in building a construction machinery manufacturing base in India in November 2006, becoming the largest-ever direct Chinese investor in India; and signed a memorandum with the Georgia government on investing US$60 million in building a construction machinery manufacturing base in September 2007, becoming an enterprise of Hunan that had made the largest-ever investment in the USA and China's first machinery manufacturer that had built a plant in the USA. Industry insiders think direct overseas investments distinguish Sany from its counterparts in terms of expansion, and Sany is skilled in integrating its own advantageous resources with others in foreign countries and internationalizing itself through internationalized resources.
In the current economic situation, Sany's advance against all odds gives a boost to confidence and development. President Xiang Wenbo said the European tour of Premier Wen Jiabao demonstrated China's confidence in promoting economic development to the international community and kicked off China's "journey of confidence" to the international community in spite of some impact of the financial crisis had on the internationalization of Chinese enterprises, and combined with China's efforts in further intensifying infrastructural investment, it is a prime opportunity for Chinese construction machinery manufacturers, thus we must do something concrete. "The common witness of Chinese premier and German chancellor to the contracting of Sany's Germany project itself showed overseas confidence in China's economic development as well as the attention of the Chinese and German governments to the project and their great expectation of it.
In 2008, Sany achieved sales of RMB 20.9 billion and planned to increase the figure to over RMB 100 billion within five years, thus being listed among the Fortune Global 500. It was the confidence and strength that made Sany dazzling in the chilly winter.
