Australian construction group VDM has signed a letter of intent for a joint venture company with Sany heavy machinery to lease, sell and service construction equipment in the Western Australia market. The LOI calls for Sany to have a 51-percent interest in the joint venture, with VDM holding 49 percent. The business scope will include lease, sales, parts sales and after-sales maintenance service in Australia.

The product range will include Sany equipment.

“Sany and VDM are completely aligned in their commitment to offering competitively priced quality and innovative products and delivering excellence in customer service,” said VDM in a statement. “We are confident Sany will become a significant player in the Australian construction equipment market.”

The Sany Group had 2012 revenue of about U.S. $7.5 billion and operates in 150 countries. Sany has five industrial parks in China as well as four R&D and manufacturing centers in the United States, Germany, India and Brazil.