The Manitowoc Co. announced that Shantui Investment Co. has terminated its agreement with Manitowoc’s subsidiary Manitowoc Crane Group Asia to enter into a joint venture contract to develop the truck crane business currently operated as Manitowoc Dong Yue Heavy Machinery Co. Ltd.
In terminating the agreement to pursue the joint venture relationship, Shantui cited China’s economic restructuring and the sharp decline in the construction machinery market in China, which have adversely impacted Shantui and affected governmental investment policies and investment ideas in the construction industry. These factors have led to delays in obtaining the necessary governmental approvals for the joint venture.
“We are disappointed with Shantui’s decision and the fact that the Chinese government did not act to timely approve our potential joint venture as we believe that there was enormous potential presented by the successful collaboration of Manitowoc and Shantui in the truck crane industry,” said Glen Tellock, Manitowoc chairman and CEO. “In the meantime, we will evaluate our options with our current partner, Tai’an Taishan Heavy Industry Investment Co. Ltd. with respect to the future of the Manitowoc Dong Yue business.”