After acquiring Italy CIFA, the Board of Directors of Changsha Zoomlion Heavy Industry Science & Technology Development Co., Ltd. (hereinafter referred to as "Zoomlion") recently announced that they made their decision to acquire 82% stock rights of FORETIDE Machinery Manufacturing Co., Ltd. from Changsha Xinfeng Investment Co., Ltd. by investing RMB 119 million Yuan. 

State-Owned Assets Supervision & Administration Commission of Hunan gave an official reply that agreed the acquisition and authorized Zoomlion the rights to define acquisition price and trading structure.

FORETIDE Machinery Manufacturing Co., Ltd. mainly specialized in developing, designing, manufacturing and selling bulk material transportation equipment and systems, including transportation machinery, loading/unloading machinery. They have close technological cooperation with German KOCH Corporation, which is one of the leading enterprises in the field of bulk material transportation equipment industry in the world. The products manufactured in FORETIDE are high in technological content, mainly including Stacker & Reclaimer, tube belt conveyor and gantry crane.

Zoomlion and FORETIDE are both located in Changsha and close to each other, which is convenient for this acquisition. Zoomlion explained that FORETIDE possessed comparative advantages in terms of product technology and market and this acquisition was favorable for Zoonmlion to strengthen the main business and expand industry chain.

Zoomlion is also active in their overseas layout. The announcement showed that the Board of Directors agreed to set branch companies in Vietnam, Russia, Ukraine, Northern Africa, Australia, Turkey and India with registered capital of 100,000 dollars for each one. The operation scope will include the sales of construction, environmental-protection machinery, crane truck and matching chassis.

Zoomlion say the establishment of these branch companies are mainly aiming at timely obtain the real market information to coordinate the business departments of main machine to expand the direct sales in the above mentioned area as well as to provide after-sales service and parts supply for the customers in a better way. In addition, the components of some equipments are assembled and processed in the local area, which will more quickly reach sales target and also good for cost control.

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.