On May 18^th, Sany Group’s European Headquarter in Cologne, Germany was opened, and the company will invest 100 million Euros to establish a plant in Germany. This is the third area headquarter that Sany set overseas after in India and America.

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Last year, Liang Wengen, the Chairman of the Board led superior management leaders of Sany to inspect the European market and conducted on-spot inspection in terms of the location of the plant in Europe. Investment Promotion Agency of North Rhine-Westphalia in Germany in charge of negotiating the investment of Sany had assisted the investment of Sany since from May in 2007.

In April of this year, Sany Group singed investment contract with German Government Investment Promotion Agency. The two parties agreed to promote the sales and service of Sany Group in European Area together to build the new image of “Made in China”. According to the contract, Sany Group will initially buy an area of 200,000 m² land to construct a plant in Cologne, and reserve a piece of land that can be expanded to 300,000 m². This investment plans to finish the purchase, design, planning, approval of construction and elementary construction engineering before 2008, and the plant will be put into operation in 2009 with total investment of 100 million Euros.

Sany Group believed that Sany Germany Company will not only provide complete equipment sales, rent and after-sales service, but also can offer training of operators and technical support for the customers in Europe.

Ranking in Top 50 World Construction machinery, the concrete pumping equipments produced in Sany Group were listed in the first three in the industry together with German enterprises—Putzmeister and Schwing who are the No.1 and No.2 respectively. Therefore, Sany Group’s choice to locate the European Headquarter in Germany showed out clearly the intention to compete with the two industrial giants directly.

In 2007, Sany Group realized income sales of RMB 13.5 billion Yuan and profit of RMB 4 billion Yuan. Seeing from the income scope, domestic market still plays a dominant role, while overseas operations increased fast from 60 million dollars in 2006 to 220 million dollars.

Currently, the products of Sany Group have been sold to 97 countries and districts all around the world. However, facing the gradually-satiated domestic market, it is urging for Sany Group to penetrate into overseas market rapidly. To set area headquarter and overseas manufacturing base, or directly acquire the local enterprises become the most realistic choices. In March of this year, Sany entrusted RMB 3 billion Yuan from Standard Chartered Bank, making a good preparation for fastening overseas expansion.

Related Information

On Nov. 23^rd, 2006, Sany Heavy Industry signed agreement with Indian Maharashtra Government, investing 60 million dollars to build manufacturing base of construction machinery in Pune near Bombay. That was the largest direct investment of Sino-funded enterprises in India at that time. Before this, Sany Group and its subsidiary enterprises mainly opened the overseas market through establishing sales branch companies.

On Sep.12^th, 2007, Sany Heavy Industry signed the investment memorandum with American Georgia Government, investing 60 million dollars to build manufacturing base of construction machinery and building the headquarter in North America just facing with Caterpillar—the giant in Construction Machinery Industry. According to the assignment, Sany will expropriate 1600 Mu land in Peachtree City in Georgia and invest 60 million dollars to build American R&D and manufacturing center. The base may further cover Canadian and Mexican markets and is planned to realize production capacity of 500 million dollars within 5 years. Now the project develops smoothly as the general planning of R&D base has been approved by local government; Sany American Company has accomplished sales of 35 million dollars in the first quarter of 2008, and it is expected to extra-finish the sales goal of 80 million dollars in the whole year.

Meanwhile, after consulting many famous tax consultancy companies and with sufficient preparation, Sany Belgium Holding Company and Sany Belgium Finance Company were successfully registered in Belgium time March 7^th, 2008 and will be put into operation recently.

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).

Our facilities cover a total area of 200,000 square meters and are staffed by more than 12,000 employees. We have the largest share of the domestic market for trailer-mounted concrete pumps, truck-mounted concrete pumps, and 18-T full hydraulic vibratory rollers. This makes us one of the three most influential construction engineering equipment manufacturers in mainland China. In the last three years, we were successfully maintaining an annual growth rate of over 40 percent.

Our trailer-mounted concrete pumps have broken the world record several times for pumping height. In 2002, our trailer-mounted concrete pumps pumped C60 concrete to a height of 406 meters in the construction of the Hong Kong International Financial Center. In 2004, our pumps played an important role in the construction of the Dubai Tower, the world's tallest skyscraper in the United Arab Emirates.

We were also the world's first maker to develop fully hydraulic motor graders, and the only company in mainland China to produce asphalt transfer trucks.