Zhejiang Hongsheng Group Co., Ltd plan to invest RMB65million to purchase GROSS Textile Machine Co., Ltd because it can expand market depending on Famous German brand –GROSSE and its distribution network.
Recently, this item's contact person in Hongsheng Science-technology Information department –Luo Dongsheng disclose that this item have approved by Zhejiang province Development & Innovation Committee and will be stat up formally.
Hongsheng Group has established complete purchase plan and plant to invest in this item in two periods. Luo Dongsheng show that this company will establish own-ventured company "GROSSE Exactitude Machine Co.,Ltd" in German , which is specialized in dealing with electronic jacquard machine while purchase the asset of former German GROSSE Textile Machine Co.,Ltd to develop international updated electronic jacquard machine. The above operation will cost RMB 40million Yuan.
Hongsheng Group will send three experts to act as enterprise chairman who will be chosen through directorate and act as general manager in part time.
In second period, it will invest RMB 25million Yuan to establish united developing item team, purchase research equipment for research center and develop mould as well as manufacture international updated electronic jacquard machine to form throughput of 50 sets annually.
Hongshen group anticipate that the callback period for investment is half and two years. Luo Dongsheng said that the item is anticipated to generate sale 17.5million Euro, tax 3.26million Euro, valid profit 2.93million Euro, profit rate 45%.
Hongsheng group anticipate that electronic jacquard machine market will increase greatly in several future years. Its annual requirement is evaluated to be over 10000 sets.
Established in 1878. German GROSSE Co. is a family enterprise as well as one of three pioneer jacquard machines in the world.
