Volvo close deal with Lingong
VOLVO Construction Equipment have concluded their previously announced 70% equity investment in China’s Shandong Lingong Construction Machinery Co. Ltd (Lingong), having received all necessary regulatory approvals.
Lingong manufacture a broad range of products including wheel loaders, excavators, backhoe loaders and road rollers. The company have approximately 170 dealers, a significant network of service agencies and 10 parts outlets in China. Their products are distributed across China and exported to Australia, the Middle East, Malaysia and Mongolia.
Commenting on the deal, Tony Helsham, president and CEO of Volvo CE, said: ‘We are delighted to move forward in our partnership with Lingong. Lingong’s management, brand, R&D center, manufacturing base, distribution and suppliers are important elements in Volvo CE’s growth strategy.’
Volvo CE have invested RMB 327.5 million (approximately £21.4 million) in exchange for 70% of the equity in Lingong. In 2005 Lingong’s operating income was RMB 10.2 million on revenue of RMB 2 billion.
Wang Zhizhong, chairman of Lingong, commented: ‘This co-operation secures Lingong’s future. Volvo’s advanced technology, management and global distribution will be key factors in the development of our company.’
