Konecranes is looking to expand its Asian operations with the purchase of a Chinese hoist and crane company.

The Finnish company has signed a letter of intent and announced its plans to acquire the majority of Jiangsu Three Horses Crane Manufacture Co Ltd (SANMA).

The companies expect to reach a definitive agreement in early 2009 and SANMA will become a joint-venture company. The final agreement is subject to inspection and approval by Chinese authorities.

Harry Ollila, president of Konecranes Region Northeast Asia, says the joint venture will strengthen its position and competitiveness in the Chinese market. "At the same time, Konecranes would be able to expand sales and increase supplier and procurement activities in the country."

SANMA is based in Jingjiang, about two hours north-west of Shanghai, and employs over 500 people.