Chinese machine tool firms in bid to acquire MAG

The report additionally says that other Chinese machine tool firms are interested, naming Dalian (DMTG), Quier Machine Tools and YierMT Group as others. Furthermore, private equity investors are also said to be looking at the group, which saw sales of €900 million last year and employs 3,500. "After a successful evaluation phase, we are in talks with a large number of qualified potential bidders from around the globe," a MAG spokesman said, according to Reuters. Goldman Sachs has been asked to look for a buyer for MAG Europe and MAG Americas – which may be sold separately – with first bids expected by September, the MAG spokesman said, adding: "We hope to find a buyer by October." Shenyang already owns Germany's Schiess, having bought the company in the mid-2000s. Located in the east German town of Aschersleben, the company of almost 150 years is a maker of heavy duty lathes and boring machines. Large machine tools continue to be made in Germany, but, following the purchase, it co-operates with China on its Aschersleben range of smaller machines. The MAG group is home to a number of well-known machine tool brands: Cincinnati, Lamb, Cross Hüller, Ex-Cell-O, Giddings & Lewis, Hüller Hille, Fadal, Witzig & Frank, Hessapp, Boehringer and Modul. The group reported that it had ended 2011 with a strong close and backlogs stretching to 2013 in the companies' key automotive segment. Order intake was €607 million, marking a record increase of 90%, it said, adding that the results included a significant amount of business in the fast growing markets of China and India, with more than two thirds of orders coming from these countries. Among the major orders from China in 2011 were two manufacturing lines for SGM Wuling (SGMW) for a total of 115 CNC machines from MAG's XS series. All cylinder heads, crankcases and most crankshafts for Wuling's top seller 'Sunshine' car are produced on MAG machines.