 The joint venture is expected to give Bolzoni a foothold in the Chinese forks market. |
Bolzoni Group has signed a joint venture agreement with Hebei Jing County Huaxin Forks Co.Ltd (Huaxin) and also plans to acquire 20% of the company's share capital.
In 2005, Bolzoni entered the Chinese forklift attachment market with Bolzoni Auramo (Shanghai) Forklift Truck Attachment Co Ltd, a joint venture with Tiger group, its Chinese distributor since 1998. The latest joint venture has formed Bolzoni Huaxin Co Ltd, a partnership that is expected to give Bolzoni a foothold in the Chinese forks market.
Bolzoni spokesman Marco Rossi says Huaxin is a leading manufacturer in China, producing about 150,000 forks annually. "The plant is efficient and the quality is well-known worldwide. In fact, they are also exporters."
The group is investing about EUR1.9 million (USD2.75 million) in the joint venture that it says will secure its access to the world's largest forklift forks market, "with volumes higher than the European and US markets put together". Bolzoni estimates that the Chinese forks market is worth about EUR30 million (USD43.4 million), based on 2010 volumes.
Bolzoni has a 60% stake in Bolzoni Huaxin, while Huaxin owns the remaining 40%. Bolzoni's head of operations in China, Emanuele Scotti, will manage the new company. Rossi says if things run according to schedule, up to 130 people could be employed in three to four years' time.
A 10,000sqm (107,639 sqft) plant will be built in Jiangsu, Jing County, 250km (155 miles) south of Beijing and be operational in the first quarter of 2012.
"To make the partnership stronger and take full advantage of the common synergies, Bolzoni Group will (acquire) 20% of Huaxin's share capital," he adds.
Group chairman Emilio Bolzoni says the agreement will open new opportunities through operating alongside one of the world's leading fork manufacturers. "Thanks to this operation, our group will become one of the world's main players for the forklift forks market."
Bolzoni's 2010 turnover was about EUR94 million (USD136.1 million). It has six plants in Italy, US, Finland, Germany and China.