On December 25th, National Development and Reform Commission (NDRC) announced online that NDRC has approved the application of Sany Heavy Industry Co., Ltd. to increase investment on Sany International Development Co., Ltd. and establish R&D center and machinery manufacturing base in Germany.

Overseas market will be the key of Sany to expand strategy in future. To establish European R&D Center and Machinery Manufacturing Base in Cologne, Germany is targeting at covering the whole European market to expand European market share.

On October 28th, 2008, Sany and German North Rhine-Westphalia Economy Ministry announced in Duesseldorf that Sany would invest about 100 million Euros in Bedburg and Bergheim industrial parks near Cologne to establish a plant and R&D Center, mainly producing excavator, concrete pump and high-gravity machine.

Earlier in May, Sany established Sany European Machinery S.L in Germany as European headquarter to investigate the demands of European market on construction machinery products.

The economic crisis did not affect the investment of Sany in Germany. As Sany purchased chassis, engines from Europe, to establish manufacturing base and to sell directly in Europe can save the expensive transportation fee.

According to the announcement of Sany on September 27th, the total investment of European base in German is planned to be 100 million Euros, among which newly-added fixed capital will be 83.08 million Euros and flow capital 16.92 million Euros. After the project is finished and put into operation, it is planned to produce 3000 sets of construction machinery annually with yearly sales income of 350 million Euros, returns of 48.02 million Euros, rate of return on investment 27.75% and investment pay-back period of about 6.93 years.

About Sany

SANY Group Co. Ltd was established in 1989, with associated companies including SANY Heavy Industry Co. Ltd, SANY Heavy Machine Industry Co. Ltd and SANY Auto Manufacture Co. Ltd. SANY Heavy Industry Co. Ltd was established in 1994 and has since become the group's core company. We are one of the mainland's largest manufacturers of large-volume pumps, with achievements that include being the first mainland China manufacturer to produce truck-mounted concrete pumps. We also manufacture concrete placing booms, concrete mixers, excavators, motor graders and vibratory rollers. We currently serve clients in more than 100 countries worldwide, and are publicly traded on the Shanghai Stock Exchange (A-Listed).