Weichai Expands Overseas Market In a Wise Way
2013-12-17 Source：www.chinaspv.com
Summarize：Since 2000, Weichai insists the way of international cooperation and independent innovation all along.
www.chinaspv.com: Weichai Power Co., Ltd is one of the domestic strongest automobile and machinery equipment manufacturers. Since 2000, Weichai insists the way of international coopration and independent innovation all along.
In China, Weichai proceeds with a series of improvements and innovation of WD engine introduced from Austria. In April of 2006, Landking engine, the first domestic high-power engine with completely independent intellectual property right and emission of Euro III standard, began to be into mass production.
Overseas Merger Helps Industrial Structural Adjustment and Upgrading of China Engineering Machinery Industry
In 2003, Weichai invested over 100 million Yuan to establish an European R&D Center cooperated with famous Austrian AVL company in overseas. By virtue of the most advanced technical development platform of the world, Weichai independently developed Euro III engine. On April 28th of 2006, Weichai, Foton, German BOSCH and Austrian AVL established an international strategic alliance to proceed with close cooperation in development, research, product and market.
Apart from international R&D and cooperation, Weichai plans to expand its market to the rest of the world. On Jan. 23rd of 2009, Weichai gained relative asset of French Baudouin by 2.99 million Euros through its subsidiary—Weichai Power International Development (Hong Kong) Co., Ltd. Baudouin newly purchased was specialized in design, development and sales of engine and drive assembly, which was just connected with 12L diesel engine of Weichai. Compared with tens of billions of Weichai revenue, this investment to Baudouin was just a small attempt but a foundation to expand overseas market. Then, Weichai chose to develop its own capability instead of purchasing more companies as expected.
On Jan. 10th of 2012, Weichai signed an agreement with major creditors of Ferretti—the largest luxury yacht manufacturer in Europe to purchase controlling stake. What’s worthy mentioning, it only took five months for Weichai to complete reorganization of Ferretti, decreasing its bank liability to 116 million Euros from the original 760 million Euros. Due to its complicated equity structure and excellent design plan, it becomes the most classic trading case of Europe in 2012.
However, Weichai did not to choose develop silently like the first time. In less than 8 months, Weichai became a shareholder of German KION—the second largest forklift manufacturer in the world with 738 million Euros. According to framework agreement, Weichai paid 467 million Euros to subscribe newly increased 25% equity of KION and one call option. Thus, Weichai achieved its equity to 30% before KION being marketing listed. Meanwhile, Weichai paid 271 million Euros to Linde Material Handling—a company controlled by KION to get 70% equity. In addition, Weichai did some relative equity arrangement to improve hydraulic equity of Linde in the future. Only 4 months was taken to negotiate with KION, which was the largest direct investment of Chinese enterprises in German.
Views:0Editor：Seven
Related China Bus News
