Xuzhou Construction Mach. to acquire 60% stake in Chunlan Auto

Sep. 25, 2008 (China Knowledge) - Xuzhou Construction Machinery Science & Technology Co. (XCML)<000425>, a China-based engineering machine manufacturer, has been approved by its shareholders to acquire 60% stake in Nanjing Chunlan Auto Manufacturing Co. Ltd.

XCML will be able to expand to the heavy-duty truck industry and establish new source of revenue through the acquisition.

As of the end of June, Chunlan Auto, a subsidiary of Chunlan Group Corp., had total assets and equities of RMB 290 million and RMB 160 million respectively, with net profit loss of RMB 23.24 million. It was established in September 1997 with a registered capital of RMB 450 million.

On Jul. 7, XCML and Chunlan Auto's parent signed a letter of intent on the stake sale.

XCML mainly produces compacting machineries, earth scrapers, pavement construction machineries and other machineries. Shares of the company edged up slightly to close at RMB 13.99 on Wednesday.