Xuzhou Construction Machinery Technology Co., Ltd. issued an announcement saying that the company has signed an equity transfer agreement with Jiangsu Chunlan Auto Co., Ltd. and plans to invest RMB 170 million to acquire 60% of Chunlan Automobile's equity held by Jiangsu Chunlan. After the acquisition is completed, the company will formally enter the heavy-duty vehicle industry with Chunlan Motor as its platform.
Chunlan Automotive currently owns five series of medium- and heavy-duty trucks. Almost all of them include vans, warehouses, trucks, dump trucks, and traction trucks and chassis. In yesterday’s announcement, Xugong Technology stated that
Xuzhou Heavy Machinery Co., Ltd. will use Chunlan Automotive's existing car chassis manufacturing technology to achieve resource sharing and overall synergies, and promote the development of heavy vehicles.
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