Volvo Construction Equipment (Volvo CE) has announced its intentions to acquire a 70-percent share in China's fourth largest wheel loader producer, the Shandong Lingong Construction Equipment Machinery Co., Ltd.

The company is still waiting for the Chinese government's approval on the acquisition plan, which is viewed as an important step in Volvo's China strategy.

Volvo intends to use Lingong's existing management, research and operation power, while providing investment and technology to reinforce its market share.

Ranking among China's top 500 machinery manufacturers, Lingong employs 1,800 staff in east China's Shandong Province and its 2005 revenues exceeded 2 billion yuan (250 million U.S. dollars). It has developed 16 models of wheel loader in addition to road rollers and excavators.

Bolstered by China's construction boom, the country has become the world's largest market for construction machinery such as wheel loaders, with over 110,000 units sold in China in 2005.

Brussels-based Volvo CE is the world's leading manufacturer of construction equipment. It has made a total investment of 24 million U.S. dollars in China through its China subsidiary, which is located in Pudong District of Shanghai.

Source:佚名