LiuGong layout Overseas acquisition of Polish machinery assets

LiuGong (000528, closing price 28.10 Yuan) today (November 18) announced that the company and Poland Hutastalowawolas.a. ("HSW") signed a memorandum of cooperation, Both sides agreed to liugong acquisition of the HSW Company's Construction Machinery Business Unit (DIVISION1) and its wholly owned subsidiary Dressta100% 's equity and assets, and owns all its intellectual property and Dressta trademarks.　　The purchase price of the project is expected to be lower than the company's 2009 audited net assets of 4.1078 billion yuan 10%. Data show that the HSW company was established in 1937, is the Polish Ministry of Finance and the Industrial Development Board joint shareholding companies, of which the Polish Ministry of Finance holds 58.8% of the company's stake, the Industrial Development Board holds 30.8% of the company's equity, the main products are military products and construction machinery products. LiuGong This acquisition is mainly HSW company construction machinery Business Division1 and its subordinate subsidiary Dressta (including the Dressta three subsidiaries). The bulletin shows that HSW subordinates Division1 has 74~515 horsepower full range of bulldozer product line, is the world's most complete bulldozer product line of the three famous manufacturers, in addition to have a 120~427 horsepower loader product line, as well as pipe hoists, mining loaders and other products.　　Dressta is mainly responsible for overseas sales and parts import business of construction machinery products. Industry insiders said that the acquisition is LiuGong's first overseas acquisition of construction machinery business, is the Zoomlion acquisition of CIFA, 31 heavy industry into Cologne, Germany, Xugong Group to accelerate the acquisition of overseas research and development institutions, China's major construction machinery companies abroad after another major event. Through the acquisition of HSW Company's engineering machinery Business unit, LiuGong will directly obtain HSW engineering Machinery category of all intellectual property and trademarks. The company said that the acquisition will be the opportunity to establish research and development, procurement, production, marketing and accessories service network in the European market, saving LiuGong overseas to build new factories and the cost and time, and may be the Eastern European market into LiuGong's first overseas base.