"This transaction solidifies Manitowoc's position in one of the world's fastest-growing construction markets," said Eric Etchart, president of Manitowoc's Crane segment. "By acquiring a joint venture interest in TaiAn Dongyue, Manitowoc furthers its mission of bringing manufacturing and service closer to the customer. With growing demand for infrastructure and industrial expansion, this joint venture is an excellent addition to our manufacturing base and our global reach."
TaiAn Dongyue was founded in 1972 and is a major player in the Chinese mobile hydraulic crane segment. The company uses a new, purpose-built, 614,000-square foot facility located in a modern industrial park that is staffed by a workforce of over 900 professionals who are highly experienced in the manufacture and assembly of mobile hydraulic truck cranes for the Chinese market. TaiAn Dongyue currently has a product line of 10 models, ranging in lifting capacity from 8 to 50 metric tons.
"Our people and the local community are very pleased to form this partnership with one of the world's leading crane companies," said Mr. Liu Rubin, Chairman of the Board of TaiAn Dongyue Heavy Machinery Co. Ltd. "We are very impressed with Manitowoc's commitment to not only its customers, but to its people, providing training and support around the world."
"The manufacturing facility in TaiAn is an excellent complement to Manitowoc's business development initiatives in China. As we develop the TaiAn relationship, we expect to replicate the successful, proven business model that we've used so effectively in Zhangjiagang," Etchart explained. "We are now very well positioned near China's two fastest-growing cities as well as to serve continuing development throughout central and northern China. The TaiAn facility is also served by the port of Qingdao, one of China's most modern and active port cities."
China is the world's #1 market for mobile hydraulic cranes, accounting for more than 70% of all mobile hydraulic units produced in 2006. Tower cranes and mobile hydraulic cranes are in very high demand in China, with the domestic construction market expected to grow at compounded annual nominal growth rate of 18.1% through 2016, according to Global Insight, with infrastructure segment spending expected to grow 26% in 2008.
About The Manitowoc Company, Inc.
The Manitowoc Company, Inc. is one of the world's largest providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. As a leading manufacturer of ice-cube machines, ice/beverage dispensers, and commercial refrigeration equipment, the company offers the broadest line of cold-focused equipment in the foodservice industry. In addition, the company is a leading provider of shipbuilding, ship repair, and conversion services for government, military, and commercial customers throughout the U.S. maritime industry.
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Potential factors could cause actual results to differ materially from those expressed or implied by such statements. These statements and potential factors include, but are not limited to, those relating to:
-- anticipated growth in the Chinese construction market, including -- anticipated spending in the infrastructure segment, -- changes in revenue, margins, and costs, in particular as they arise out of Manitowoc's expansion in China, -- the risks associated with growth, -- geographic factors and political and economic risks, -- actions of company competitors, -- changes in economic or industry conditions generally or in the markets served by our companies, -- new facilities and expansion of existing facilities, and -- the ability to complete and appropriately integrate restructurings, consolidations, acquisitions, divestitures, strategic alliances, and joint ventures.