Manitowoc-Shantui joint venture terminated
By Hatton18 September 2013
Shantui Investment Co Ltd has terminated its agreement with Manitowoc Crane Group Asia Pte Ltd, to enter into a joint venture contract with its truck crane segment. Manitowoc's Chinese truck crane operation is Manitowoc Dong Yue Heavy Machinery Co Ltd.
The Manitowoc Company said that Shantui terminated the agreement for a potential joint venture due to economic restructuring in China and a decline in the construction machinery market, which, in turn, had affected government investment policies.
Glen Tellock, Manitowoc chairman and chief executive officer, said, “We are disappointed with Shantui’s decision and the fact that the Chinese government did not act to timely approve our potential joint venture as we believed that there was enormous potential presented by the successful collaboration of Manitowoc and Shantui in the truck crane industry.
“In the meantime, we will evaluate our options with our current partner, Tai’an Taishan Heavy Industry Investment Co Ltd, with respect to the future of the Manitowoc Dong Yue business,” Tellock continued.