Companies will develop the track-mounted crushing and screening business.
Finland-based Metso and China-based Guangxi LiuGong Group Co. Ltd. have received approval from Chinese authorities, and a 50-50 joint venture between the two companies has been officially established there. Headquartered in Shanghai, Liugong Metso Construction Equipment Co. Ltd., will combine Metso's background in track-mounted crushing and screening business and technology with LiuGong's distribution resources, which includes 900 customer service locations in China and manufacturing capabilities.
The initial scope of the joint venture will cover the design and manufacture of localized versions of Metso's Lokotrack mobile crushers and screens, first of which is expected to be launched during the first half of 2014. The products will be sold under dual branding: LiuGong Metso. The joint venture also will promote Metso's global track-mounted crushing and screening equipment in China.
"The joint venture enables the capture of a significant market share of the fast growing mobile crushing and screening market in China,” says Joao Ney Colagrossi, Metso’s president of mining and construction. “Our target is to build a market-driven technology offering and the joint venture with LiuGong is a major step towards this direction. Together with the acquisitions of the steel foundry in Quzhou City and Shaorui Heavy Industries Ltd., announced last year, the joint venture significantly strengthens our supply capabilities for mining and construction industries in China."
Metso presently has more than 1,500 employees in China to address local customer needs in all the sector’s Metso covers.