LiuGong completes acquisition of HSW
China-based LiuGong Machinery Corp has completed acquisition of HSW (Huta Stalowa Wola) and its distribution subsidiary, Dressta.
David Beatenbough, currently vice president of research and development for LiuGong, will be the chairman of the board of the new entity, LiuGong Machinery (Poland). This is the company’s first outright acquisition outside its domestic market.
Producers of bulldozers and other crawler machines, HSW is one of only seven manufacturers worldwide producing a complete line of bulldozers, from 74 Hp to 520 Hp. The Polish government was the primary owner of HSW.
“This deal further solidifies the strong ties between our two countries, as Poland and China are long term trading partners and we have more than 60 years of excellent relations. This agreement signals a new era of expansion for both LiuGong and HSW," said Zeng Guang’an, vice chairman and president of Guangxi LiuGong.
HSW Chairman Krzysztof Trofiniak said the new partnership is the right move for both companies, leveraging Chinese efficiency and European technology.
After announcing its intent to acquire HSW last March, negotiations for the agreement continued during the summer and fall, as LiuGong reached agreement regarding wages and job security with the Polish Workers Union and completed the commercial terms of the transaction with HSW.
“Our gaining and retaining the technical knowledge and skills of the HSW employees was important to us in this agreement,” said Beatenbough.
In the transaction, LiuGong obtains core technologies that will help it advance some of its product designs; supplements LiuGong’s product lines; provides a manufacturing and logistic footprint in Europe; and expands LiuGong’s penetration into markets and products segments.
It runs 22 manufacturing plants in China, and one in India that adhere to Six Sigma quality methods. HSW will bring that count to 24.