LiuGong acquires HSW, Dressta
| January 10, 2012 |
LiuGong Machinery Corp., a global construction equipment manufacturer based in Liuzhou, China, has finalized its agreement to acquire HSW (Huta Stalowa Wola) and its distribution subsidiary, Dressta Co. Ltd., company executives announced.
The agreement was signed by both companies’ executives in Warsaw with celebration ceremonies following at the Baranów Sandomierski Castle in Baranów Sandomierski, Poland.
David Beatenbough, currently vice president of research and development for LiuGong, has been named chairman of the board of the new entity, LiuGong Machinery (Poland) sp z o.o. The transaction is LiuGong’s first outright acquisition outside its domestic market.
After announcing its intent to acquire HSW last March, negotiations for the agreement continued during the summer and fall, as LiuGong reached agreement regarding wages and job security with the Polish Workers Union and completed the commercial terms of the transaction with HSW.
In the transaction, LiuGong obtains core technologies that will help it advance some of its product designs; supplements LiuGong’s already expansive product lines; provides a manufacturing and logistic footprint in Europe; and expands LiuGong’s penetration into markets and products segments. LiuGong already offers a full line of high quality machines to world markets. LiuGong has among the most expansive array of product lines of any Chinese manufacturer, including including wheel loaders, bulldozers, skid steers, forklifts, motor graders, excavators, rollers, drilling machines, truck mounted and crawler cranes, pavers, cold planners, concrete equipment and mining dump trucks.