NEXT ISSUE SERVICE DEALER BUSINESS QUARTERLY Magazine Summer 2013 published July 2013
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CLAAS EXPAND IN CHINA Takeover of major manufacturer signals expansion in the region
Claas is planning a significant expansion of its business in China thanks to the majority take-over of the Chinese agricultural machinery manufacturer, Shandong Jinyee Machinery Manufacture Co. Ltd. (Jinyee), in Gaomi in the province of Shangdong.
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 of the contract is contingent upon obtaining approval from the national authorities, among others.
The spokesperson for Claas management, Dr. Theo Freye, said "China is the largest and fastest-growing market for agricultural engineering in Asia – a market in which Claas has been represented for many years. By acquiring the majority share in Jinyee, we are creating local production capacity for machines aimed at the Chinese market. Through expanding our product range, we anticipate creating impetus for growth for Claas in other markets and Claas locations. 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 China is another step towards Asia – a step that fits in with our long-term focus on this area."
The mechanisation of agriculture in China is developing rapidly, driven by the changing demands for food (towards greater consumption of meat), the growing population and migration. Claas wants to use this acquisition to take advantage of the enormous potential for growth that it provides.
Jinyee produces various harvesting machines, mainly for the maize and wheat harvest, at two main sites in Gaomi and Daqing. Each of the sites lies right in the heart of a main agricultural region – one in Central China and the other in North-Eastern China.
Jinyee’s headquarters are in the city of Gaomi, which is located between Beijing and Shanghai in the province of Shandong. The company’s premises cover an area of more than 22 hectares. This is ap-proximately half the size of Claas’ headquarters in Harsewinkel in eastern Westphalia.
In 2012, Jinyee, which was founded in 1958, had sales of around €70 million. It currently employs more than 1000 employees and has a comprehensive sales and service network in Central and Northern China.
