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China's Sany to buy Putzmeister

The Local · 30 Jan 2012, 14:29

Published: 30 Jan 2012 14:29 GMT+01:00

In what Putzmeister described as one of the biggest deals in the so-called Mittelstand sector that makes up the backbone of the German economy, Sany

Heavy Industry and the Chinese private equity group Citic are to acquire 100

percent of Putzmeister, the German company said in a statement.

All parties had agreed not to disclose the terms of the sale, but a source close to the talks put the sale price at about €500 million ($660 million).

"The business activities of Putzmeister and Sany are highly complementary geographically" and will leader to "the creation of the global market leader for concrete pumps," Putzmeister said.

The German family-owned firm is headquartered in Aichtal in the southern state of Baden-Württemberg, it employs a workforce of 3,000 people and has annual revenues of around €570 million.

Putzmeister said Sany's financial strength would secure its future growth prospects, while the Chinese group would benefit from Putzmeister's "cutting-edge technology 'Made in Germany' and acquire a strong distribution and service network outside of China."

Putzmeister insisted it would continue to operate "with a high degree of independence in day-to-day management. Sany will focus on operations in China where Putzmeister will continue to be the premium brand."

Story continues below…

The German company's chief executive Norbert Scheuch would remain in his position and join the Sany executive board.

In Germany, Mittelstand refers to the legion of small and medium-sized family groups, often key players in niche markets of the export-orientated engineering sector.

AFP/mry

The Local (news@thelocal.de)

Your comments about this article

16:09 January 30, 2012 by Tanskalainen
Well, stroke my putz!
16:57 January 30, 2012 by lucksi
I'm more interested why a truck with a cement pump on it looks like something out of Mad Max. Wonder if that thing that is over the driver cabin is for lifting the truck up or something.
18:00 January 30, 2012 by Englishted
Living in dreamland if you think production will stay in Germany in the long term ,

the Chinese are renowned for patience and will move slowly but move it they will.
22:18 January 30, 2012 by Anth2305
@Englishted

One often sees and hears comments about China's inability to innovate, saying that they can only copy and make rubbish which quickly falls to pieces, although they seem to forget that dozens of Western companies (such as Apple) with reputations for high quality have many of their goods manufactured there.

Looking through an old electronics magazine the other day, I happened to notice that British companies, such as Pye, actually used to sell television equipment to Japan back in the 1950s.

I also remember derogatory phrases such as 'Jappy crappy' when Japan first started selling goods to Europe and America back in the sixties and people who thought they knew better laughingly telling us how their ¦#39;Inferior imitations, would never be able to compete with Western manufactured products', how wrong they were, not only did they compete, but also increasingly caused the demise of many long established and over complacent industries, especially in the field of electronics and automobiles, along the way.

How many large, once seemingly invincible, electrical manufacturing companies, such as Thorn in the UK, Grundig in Germany and RCA in the US still exist, other than by virtue of owners who have simply bought established and recognised names to badge engineer their foreign made products?

Has that taught us anything, or will our eagerness to sell technology, manufacturing and even whole companies to countries such as China and India, In the pursuance of making a fast buck, blind us to the fact that before very long our expanding global markets could well start to dry up, because they'll be making their own home grown Range Rovers, BMWs, Apple computers and anything else you can care to mention.
10:42 January 31, 2012 by dbert4
Seems that some Germans companies have caught that Ami/Brit disease called, "Screw the furure, lets make a quick euro today".
12:17 January 31, 2012 by jg.
@dbert4

Yes - it has been my impression that German management have usually taken a long term view and have apparently not had the same pressure from banks to sell everything to make a fast buck as their counterparts in the UK have done.
14:08 January 31, 2012 by jamano
@ lucksi

I think this is lead shield to protect from radiation. Such pumps have been used both in Chernobyl and recently in Fukushima to deliver water to the reactor core.

Why the Local are using exactly this picture is unknown to me.
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