Claas acquires Chinese agricultural machinery manufacturer.
Claasis planning a significant expansion of its business in China thanks to themajority take-over of the Chinese agricultural machinery manufacturer; ShandongJinyee Machinery Manufacture Co. Ltd. (Jinyee), in Gaomi in the province ofShangdong.
Contracts were signed on 16th July by the Chinese shareholder and Claas,but as is usually the case with transactions of this kind, the conclusion ofthe contract is contingent upon obtaining approval from the nationalauthorities, among others.
The spokesperson for Claas management, Dr. Theo Freye, said “Chinais the largest and fastest-growing market for agricultural engineering in Asia a market in which Claas has been represented for many years. By acquiring themajority share in Jinyee, we are creating local production capacity formachines aimed at the Chinese market. Through expanding our product range, weanticipate creating impetus for growth for Claas in other markets and Claaslocations. We have production plants in the Western and Central European markets,as well as in the USA, Russia and India. Purchasing a production plant in Chinais another step towards Asia a step that fits in with our long-term focus onthis area.”
The mechanisation of agriculture in China is developing rapidly, drivenby the changing demands for food (towards greater consumption of meat), thegrowing population and migration. Claas wants to use this acquisition to takeadvantage of the enormous potential for growth that it provides.
Jinyee produces various harvesting machines, mainly for the maize andwheat harvest, at two main sites in Gaomi and Daqing. Each of the sites liesright in the heart of a main agricultural region one in Central China and theother in North-Eastern China.
Jinyee’s headquarters are in the city of Gaomi, which is located betweenBeijing and Shanghai in the province of Shandong. The company’s premises coveran area of more than 22 hectares. This is approximately half the size of Claas’headquarters in Harsewinkel in eastern Westphalia.
In 2012, Jinyee, which was founded in 1958, had sales of around 70million. It currently employs more than 1000 employees and has a comprehensivesales and service network in Central and Northern China.