China machine tool firm stake up for sale
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<i>China Daily</i> reports that a 49 per cent stake in China's top machine tool manufacturer, Shenyang Machine Tool Group, is to be sold off by local government.
The sale is taking place in order to diversify the company's ownership and improve its competitiveness, according to Shenyang State-owned Assets Supervision and Administration Commission.
The firm is one of the major machine tool research and development firms in China, with its products taking almost 20 per cent of the domestic market last year.
The commission is said to prefer to sell the stake to large corporations from among China's top 100 manufacturers or the world's top 500 firms, or to machine industry companies, but overseas investors will be allowed to hold a combined stake of no more than 30 per cent.
In 2004, Shenyang purchased Schiess AG, a German machine tool company with 140 years of history. And prior to Cincinnati Lamb's purchase by Maxcor, it formed a strategic alliance with Shenyang in 2003.
Pictured, Shenyang president, Mr Qingxiang Dong
