Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd. (Zoomlion for short) issued the Announcement of Foreign Investment Improvement that they have cooperated with Hony Capital and Mandarin Capital, signing a contract with Goldman Sachs the shareholder of Compagnia Italiana Forme Acciaio S.p.A. (CIFA for short) to acquire the 100% share rights of CIFA which is one of the three concrete machinery manufacturers in the world. After the acquisition, Zoomlion will become the leader of the construction machinery industry in the world.

Zoomlion said that they cannot disclose the details about the deal as the relevant information related to the deal is still under collection.

According to one acquisition data, the total assets of CIFA was 303.74 million Euros and sales income was 303.95 million Euros by Dec. 31^st in 2007. Since from 2005, CIFA’s Compound Annual Growth Rate (CAGR) reached 69% on East Europe and Russian markets. Especially on Russian and Bulgarian markets, CAGR reached 171% and 73% respectively.

Some market analysts said that as CIFA was ranking the top three concrete machinery suppliers in the world and Zoomlion is the No.2 concrete machinery supplier in China, this deal will rapidly upgrade Zoomlion’s position on the global concrete machinery market. The accumulated global market share of concrete machinery in Zoomlion and CIFA will rank to be No.2 in the world, closing to world No.1. “Then Zoomlion will replace Sany to be the leader of concrete machinery market in China,” they commented.

About Zoomlion

Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd. (hereinafter referred to as "Zoomlion") was established as a hi-tech public listed company on the basis of Changsha Construction Machinery Research Institute under the Construction Ministry. Zoomlion is the only one applied research institute in mainland China that combines both the construction machinery R & D and the Industry’s technical quality assembly; it is also proudly holding a record of technology covering over 75% in the Industry. Several major institutes established under the government authority are set here, including the National Architecture & Urban Construction Quality Inspection and Testing Center, and the Ready-made Concrete Machinery Engineering Technique Research Center. Besides, there are 13 secretary offices of specialized committees under the National Construction-machinery Industry Association are also located here.