Konecranes acquires majority in Chinese crane manufacturer

Through a combined share purchase and share issue, Konecranes will be the majority shareholder, with the remaining 35% of the shares held by the present owners who will continue to be involved in the management of the company, which will become a joint-venture company.

Although the letter of intent was signed in November 2008, the final agreement is still subject to inspection and approval by Chinese authorities. The Shanghai-based investment bank firm E J McKay & Camp have been advising Konecranes in this transaction, with completion expected during the third quarter of 2009.

Based in Jingjiang northwest of Shanghai, SANMA had net sales of approximately €18m in 2008 and has a strong position as a nationwide supplier of wire rope hoists in China and as a crane supplier in Jiangsu and the neighbouring provinces. The company employs around 500.