Germany-based Demag Cranes has signed a letter of intent with China's Weihua Group to intensify their cooperation in the crane business.
Demag Cranes, one of the world's leading suppliers of industrial cranes and port technology, will initially acquire a minority interest in the Weihua Group's crane business, and Weihua Group has agreed to grant Demag Cranes the option of participating in the industrial management of the group by taking a majority stake in the medium term.
Both companies have agreed on exclusivity regarding further negotiations, but financial terms of the deal have not been disclosed.
The crane business of the Weihua Group includes the manufacture and marketing of industrial cranes, harbor cranes and crane components and it is reportedly one of the few suppliers in China with pan-regional representation. The company's headquarters is in Henan and the firm was founded in 1988.