Wuhan General Group, a leading manufacturer of industrial blowers and turbines in China, has entered into an asset purchase agreement with Wuhan Gongchuang Real Estate.
According to the agreement, the company will pay Gongchuang approximately USD24.7 million for the purchase of certain assets, including buildings, equipment and land use rights. To date, approximately USD17.3 million of this amount has been paid in cash using proceeds from the exercise of warrants and ongoing operations. The remaining balance will be paid in installments over a one-year period. The total amount of consideration to be paid was determined by a valuation performed by an independent party.
Covering an area of 73,630 square meters, the land and buildings are located in Hanyang District in the city of Wuhan, 20 kilometers from Wuhan General's headquarters. The site is positioned for access to major transportation routes, facilitating future logistical needs.
Xu Jie, CEO of Wuhan General, commented that they were pleased to have completed this strategic acquisition as they were completing the installation of customized equipment for their new turbine manufacturing facility. He added that they were excited to lay the groundwork for future phases of expansion and they believed that this acquisition would facilitate their long term growth.
Wuhan General is a manufacturer of industrial blowers and turbines in China. Wuhan Blower is a China-based manufacturer of industrial blowers that are principal components of steam-driven electrical power generation plants. Wuhan Generating Equipment is a China-based manufacturer of industrial steam and water turbines used for electricity generation in coal, oil, nuclear, and hydroelectric power plants. The company's primary customers are in the iron and steel, power generation and petrochemical industries.