On November 1, Guangxi Liugong Machinery Co., Ltd. (hereinafter referred to as LiuGong) and Hubei Jianghan Construction Machinery Co., Ltd. (hereinafter referred to as Jianghan Construction Machinery) signed an agreement, LiuGong intends to invest about 610 million yuan, in two steps to reach 51% of the equity of Jianghan Construction Machinery, to enter the construction lifting machinery industry.
It is understood that Jianghan Construction Machinery is a well-known domestic construction machinery manufacturing enterprise developed in Jingzhou, specializing in the research and development, manufacturing, sales and service of tower cranes and construction lifts; in 2020, Jianghan Construction Machinery has an income of 1.8 billion yuan and total assets of 2 billion yuan, ranking among the top four in the domestic construction lifting machinery industry.
This strong cooperation lasted for one year to communicate and discuss. After the investment, Jianghan Construction Machinery will become the production base of LiuGong's tower crane and construction lift products, so that Liugong will join hands with Jianghan Construction Machinery to make construction lifting machinery an important business segment and further improve its product line.
In the past five years, China's construction lifting machinery industry has developed rapidly and has developed into the world's largest construction lifting machinery market, and the sales volume of China's construction lifting machinery in 2020 has hit a record high. In the entire construction machinery industry, construction lifting machinery has also become the fourth largest plate, and the market demand has increased year by year. It is estimated that by 2025, the total social investment around the new infrastructure will reach 40-60 trillion yuan, which is bound to further promote the vigorous development of the construction crane industry.
With the increasingly fierce competition in the construction crane industry, future resources will be concentrated to the head enterprises, and the strong Hengqiang is an inevitable trend. In the face of fierce market competition, the strategic cooperation between LiuGong and Jianghan Construction Machinery is bound to bring a force that cannot be ignored for the development of construction machinery, and we are looking forward to how to achieve the effect of 1+1>2.