Major force of Chinese companies cross-border investment – Private firms

Major force of Chinese companies cross-border investment in Europe – Private firms Nov. 25 – Privately-owned Chinese firms, cross-border M&A has become a major means of expanding abroad. Eight of the 13 industrial parks being built by Chinese companies overseas are being led by non-state Chinese companies, according to Chinese official statement at the 2015 China M&A Conference. Chinese companies cross-border investment in Europe on November 2015 latest update:

Chinese companies investment in EU in November 2015China-Slovakia deal – Masterwork Machinery to acquire Slovakian folder gluing company. Date: 20 Nov 2015. Masterwork Machinery Co. announced yesterday that it has signed an agreement with Heidelberger Druckmaschinen AG to acquire its subsidiary HPS, a folder gluer making company based in Slovakia. The purchase price is €3m (¥20.51m). Acquiring HPS’s land, buildings and production facilities will enable Masterwork to set up a production base in Europe to support its global expansion. The company has already set up distribution centres in Japan and the U.S. Masterwork designs, produces, distributes and leases printing equipment, packaging equipment and precision tools. The company recorded ¥960m in operating revenue and ¥180m in net profit in 2014.

Chinese companies investment in EU in November 2015 – China – Germany deal 1 – Chinese railway equipment to crack German market. Date: 18 Nov 2015. Deutsche Bahn (DB) might start sourcing wheel sets from China in 2017, and importing Chinese high-speed trains and locomotives within the next few years, according to DB Chief Procurement Officer Uwe Guenther. DB has a strong demand for rail components, tracks and signalling systems. It recently conducted the results of its initial market research in China and has identified 40 potential suppliers whose standards of quality are comparable to those of their European counterparts. Mr. Guenther stated further that DB is testing train wheels manufactured by Taiyuan Heavy Industry Co., and will soon conclude a supplier agreement with China Railway Rolling Stock Corporation. DB apparently plans to spend €10bn on rolling stock annually over the next five years, during which it intends to double its foreign suppliers to 20%, following numerous delivery delays by domestic suppliers such as Siemens. The company will open its first international procurement office in Shanghai next week.

Chinese companies investment in EU in November 2015 – China – Germany deal 2 – Beijing Zhong Huan Investment to acquire a 75% stake in Elektrofahrzeuge-Stuttgart GmbH. Date: 18 Nov 2015. Beijing WKW Automotive Parts Co announced on Tuesday that its shareholder, Beijing Zhong Huan Investment Management Co., has signed an agreement to acquire a 75% stake in Germany’s electric car maker, Elektrofahrzeuge-Stuttgart GmbH.
Beijing WKW said this acquisition will help promote its global expansion. The company is a Sino-German joint venture set up in 2002. It provides mid-market and premium railway cars along with internal and external accessories and systems, develops supporting products, and provides related services.