CITIC Capital Partners, a China-focussed private equity firm, has purchased a “significant stake” in Fushun Excavator, a Chinese manufacturer of crawler cranes.
The firm declined to provide further financial details.
Yichen Zhang, chief executive officer of CITIC Capital, said in a statement the firm is looking to expand Funshun’s “distribution network and access to both developed and emerging market economies”.
Beijing-based Fushun manufactures crawler cranes for the petrochemical, metallurgy, construction, transportation and nuclear power industries. It offers customers various logistics services such as transportation, storage, packaging and information control. 60 percent of the company’s products are exported to the EU, the US, India and the Middle East.
China’s construction machinery market is expected to grow at an average of 22 percent for the next four years according to experts, CITIC said. The rapid growth is facilitated by growing investments in fixed assets, increased use of machinery in the construction industry and the development of the rental market for construction machinery.
Fushun is the third investment from the firm's $425 million (€275 million) China-focussed fund which is now over half invested, a company spokesperson told PEO. Past transactions include the $82 million acquisition of Hunan AVA Holdings’ infant formula and dairy business last month, and an investment in China-based Harbin Pharmaceutical Group.
CITIC is on the verge of closing another investment in Guan Sheng Yuan, a leading confectionary company in China.