Chinese machine tool companies rely heavily on overseas mergers and acquisitions

Germany's "Financial Times" reported on June 16 that as one of the earliest acquisitions in Germany, the Chinese well-known machine tool company Hess, which was acquired by a Chinese company Shenyang Machine Tool Plant in 2007, was considered as a test field in Western countries and will be the future of China. Enter the European market to provide templates. After the first wave of acquisitions in the early 21st century, China has now stepped up its overseas acquisitions. German companies are increasingly becoming the focus of Chinese companies. Ackerman, director of the Ministry of Foreign Economic Affairs of the German Machinery and Equipment Manufacturers Association, said that the goal of Chinese companies is to gain access to technology, trademarks and market access. In this process, the experience of the Heath project has been increasingly valued by Chinese companies.

According to Lu Yuanda, the general manager of the Chinese company at Heath Company, the Shenyang Machine Tool Plant has pursued scale, strength, importance and precision, and now has the scale and importance. The focus is on improving the strength and precision. According to the report, after the acquisition of Heath Company, Shenyang Machine Tool Factory has not participated in the operation of the Heath Project. It transferred the Vertimaster1 series of small machine tools to Shenyang production, and asked the engineer of Heath to personally instruct, but the end of 2008 product quality and cooperation. The communication problems in the process became the focus of the dispute between China and Germany. Because the machines produced by the Shenyang Machine Tool Plant also needed to be reprocessed in Germany, not only increased costs, but also delayed delivery time. Shenyang Machine Tool Plant gradually realized that technology transfer is not easy. At present, Heath is mainly responsible for the development and design of important machinery and components, and assembly is completed in Shenyang. Heath also became the overseas technology center of Shenyang Machine Tool Plant. More and more Chinese engineers were sent to Heath training.

It is understood that Hess lost more than 40 million euros from 2008 to 2009, and is still in a loss state in 2010. Without financial support from the Chinese parent company, Heath can no longer survive. However, this does not mean that the overseas acquisition of Chinese machine tools is unsuccessful. The report believes that Chinese machine tool companies want to acquire technology, brand, and marketing channels. However, these are not entirely successful.

Luyuan hereby stated that the Shenyang Machine Tool Plant will continue to invest in the Heath Project and plans to invest nearly 100 million Euros by 2015, including investing up to 40 million Euros in the innovation sector and recruiting new developers.