The company recently announced that its subsidiary Shantui Investment Co., Ltd. gave up capital increase to acquire a 51% stake in Manitowoc Dongyue heavy Industry Co., Ltd.
Shantui Co., Ltd. is the main bulldozer manufacturer in China.
The company is mainly engaged in bulldozers, concrete machinery, road machinery, and construction machinery accessories and other products. Shandong heavy Industry Group, the major shareholder of the company, is a wholly state-owned company and a backbone enterprise of the equipment manufacturing industry in Shandong Province. The company plans to issue more than 100 million shares in the near future, with major shareholders contributing 400 million yuan to subscribe. After subscription, the majority shareholder holds 27.83% of the shares.
Shantui Co., Ltd. gave up the acquisition of Manitowoc Dongyue heavy Industry Co., Ltd., also gave up the opportunity to acquire crane assets, but will help the company survive the current industry downturn.
Manitowoc Asia is wholly owned by Manitowoc of the United States, which acquired Taian Dongyue heavy Industry Co., Ltd. in 2007 to form Nitowac Dongyue heavy Industry Co., Ltd. If Shantui abandons this acquisition, it will also lose the opportunity to obtain the original drawings of 34 truck cranes and truck crane products, 12 of which provide not only original drawings but also corresponding technical documents, operating instructions, technical standards and so on.
However, Shantui's net profit fell 46.64% in the first half of 2013, and Dongyue heavy Industries is still losing money, losing 84.53 million yuan in 2011 and 85.77 million yuan in the first three quarters of 2012. Shantui abandoning the acquisition will help the company reduce financial pressure and ride out the current industry downturn.
Shantui shares also involve concrete machinery and other construction machinery.
Shantui Co., Ltd. acquired Chutian in Wuhan in 2008, successfully entered the field of concrete machinery, and introduced the pressure pump valve technology of Nippon Industrial Co., Ltd., which effectively improved the technical level of the company's concrete products. As far as the concrete industry is concerned, the company's products are in the middle level, with sales of more than 50 million yuan in 2009 and sales income of about 300 million yuan in 10 years. With the completion of the first phase of Chutian project in Wuhan in April 2011, the production capacity of concrete machinery has increased to 1000 sets per year.
Shantui also penetrates the field of human excavators by manufacturing excavator accessories.
The company's track production capacity has 100000 pieces per year, which is mainly supplied to Sany, Liugong and Shanhe Intelligence and other major domestic excavator companies, while the excavator structure produced by the company is mainly supplied to Komatsuyama push. In this way, although listed companies do not produce excavators at present, the company is still expected to share the fruits of the development of the excavator industry through accessories.
