Monday, October 12, 2009

MAN Trucks to Partner with Sinotruck

Consolidates relations betweens manufacturers
Shipping News Feature

CHINA - MAN SE, the world’s third-largest heavy truck manufacturer, has received clearance from Chinese authorities to form a partnership with Sinotruk, China’s market leader for such vehicles. The deal means MAN now holds a major share in the fastest-growing lorry market in the world and reinforces the long-standing relationship between the two companies: Sinotruck have had license agreements to produce MAN vehicles for 25 years.

Under the conditions of the agreement MAN is to hold a direct interest of 25% in Sinotruk and will invest some €560 million in the company. MAN will also license its TGA truck, engine, chassis and axles technologies to Sinotruk as a basis for the production of a new heavy truck series.

Håkan Samuelsson, CEO of MAN SE, said of the agreement: “China is a market of paramount importance with huge potential. We are pleased to be able to enter into this major partnership with Sinotruk in the country.”

In 2008 Sinotruk sold over 100,000 trucks, generating revenue of around €2.5 billion. Its current market share in China is about 25%, but with the new MAN range and technologies planned to come online soon it hopes to increase this share in the coming years.