One of the world’s leading suppliers of industrial cranes and crane components, Demag Cranes & Components
has entered into a joint venture with Weihua, a leading crane manufacturer in China.
The joint venture company, Demag Weihua (Liaoning) Material Handling Machinery Co. Ltd will be responsible for the development and production of components and parts for cranes and hoists in the mid-market segment. Demag Cranes will hold 51% of the company while Weihua will have a share of 49%.
The joint venture will have two production plants located in Kaiyuan and Shanghai. The Kaiyuan plant will manufacture components, motors and parts for gearboxes while the final assembly of mid-price segment products such as rope and chain hoists, crane end carriages, drive systems and light crane systems will take place at the plant in Shanghai. The development activities for mid-price segment products will be merged and further strengthened in Shanghai.
Demag Cranes has recently launched its Bas products for the mid-market segment in China and India. Based on proven European engineering standards, these products are designed to meet the exact needs of customers in emerging markets.
The joint venture will be responsible for manufacturing the Bas products, which will be distributed by Demag Cranes and Weihua through their own established sales channels.
Aloysius Rauen, Chief Executive Officer of Demag Cranes AG explains that the joint venture will enable both companies to benefit from the broad range of Bas products.