February 29 -- Sany Heavy Industry (600031), a maker of construction machinery, reached an agreement to set up a 300 million yuan joint venture, Sany Palfinger SPV Equipment, with Austria's Palfinger AG, and both parties will each hold a 50 percent stake,  reports China Securities Journal, citing a company filing.

Sany Palfinger SPV Equipment will be based in Changsha and will mainly manufacture and sell Palfinger AG's cranes. 

Another joint venture will be set up and will be based in Salzburg. This venture will sell cranes produced by Sany Heavy Industry.

Herbert Ortner, the chief executive of Palfinger AG said, China will become the company's second-largest market.

According to Sany Heavy, the Changsha joint venture will also produce folding cranes and telescopic cranes. The company is targeting to obtain a 30 percent market share, and intends to build a new plant with capacity of 10,000 cranes.

According to the report, demand for cranes in China is expected to hit 30,000 in 2017, about half the global total.