PALFINGER AG and Sany Heavy Industry Co., Ltd, headquartered in Changsha, China, have entered into an agreement to establish of two joint venture companies in which both parties will each hold 50% of the shares.

Sany Palfinger will primarily produce and sell PALFINGER products in Changsha for the Chinese market; Palfinger Sany, with its registered office in Salzburg, Austria, will distribute the mobile cranes produced by Sany in the global market outside China. The establishment of the two joint ventures is subject to the approval of the authorities.

"With the establishment of these two joint venture companies, we have taken a big step forward in our internationalization strategy,” said Herbert Ortner, CEO of PALFINGER AG. “We now have manufacturing and assembly plants in all of the world's major markets. With Sany, we have a partner that is not only one of the fastest-growing companies in the world, but one that meets our high quality standards as well.

“Together with Sany, we have laid the foundation for holding our own on a long-term basis in an increasingly aggressive competitive environment and for expanding our leadership position in the global market. China will become our second domestic market. By enabling our partners outside China to distribute Sany mobile cranes we are giving them a valuable addition to their range of products."

Said Liang Wengen, Chairman of Sany Heavy Industry: "For Sany, this close cooperation with PALFINGER is a major step towards tapping the global market. We will use PALFINGER's dense, international sales and service network to promote the globalization of Sany from a Chinese perspective. We are looking forward to our cooperation with a partner that is a technology and market leader and whose customer proximity and comprehensive services are highly appreciated by its customers. We are fully convinced that these two joint ventures will swiftly achieve success, thereby making a significant contribution to the rapid and sustained growth of Sany."

Sany Heavy Industry Co., Ltd is the largest heavy equipment manufacturer in China and the seventh-largest in the world. exchange.

With 28% of the global market for construction machinery China is regarded as the largest producer, followed by North America with 22%, Europe with 18%, India with 9% and Japan with 6%. Within the next five years, PALFINGER expects China to become the largest market for PALFINGER products as well. In 2010, approx. 7,000 knuckle boom cranes and telescopic cranes were produced in China; at an estimated annual growth rate of more than 20%, the market for truck-mounted cranes in China is going to amount to approx. 30,000 cranes in 2017, which is roughly 50% of the global market. Sany Palfinger SPV Equipment Ltd. in Changsha will develop and produce truck-mounted knuckle boom cranes and telescopic cranes on the basis of the technologies of PALFINGER and Sany for the Chinese market. The medium-term target is a market share of 30%.

Sany Palfinger SPV Equipment Ltd. will establish a new plant near Sany's facilities, with production capacities for 10,000 cranes. At the same time, a dense sales and service network will be set up in China. First, ten standard crane models will be produced in series for the Chinese market. In a second step, other PALFINGER products, such as container handling systems, tail lifts and access platforms should be included in the production and sales portfolio. The company will start operations in 2012 and will have reached full operational effectiveness by 2013.

Palfinger Sany International Mobile Cranes Sales GmbH is being established as an international sales and service company, having its registered seat in Salzburg and exclusively distributing Sany's mobile cranes in Europe and CIS. Furthermore, for the Americas, the development of a truck mounted stiff boom crane is planned. The company will start operations without delay and will have reached full operational effectiveness by the end of the year.

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