Liugong | HSW |--Chinese firm Liugong to buy Polish civil equipment asset

Representatives of Polish state-owned manufacturer Huta Stalowa Wola (HSW) and Chinese construction equipment manufacturer Guangxi Liugong Machinery met in Beijing on Tuesday to sign a preliminary agreement for the sale of HSW's civil equipment arm to the Chinese firm.

During the meeting, which was attended by Polish Treasury Minister Aleksander Grad, the transaction price was agreed on, along with other important conditions, the Treasury wrote in a statement.

The preliminary agreement has opened the door for further negotiations leading to a final agreement. This is expected to be completed within the next few months, HSW wrote on its website.

In a joint statement, HSW and LiuGong said that the sale would be coherent with the Chinese company's aim of establishing a Polish production and distribution center from which it could supply equipment to Europe, North America and the former Commonwealth of Independent States.

LiuGong also intends to increase the efficiency of the Polish asset.

The process of privatizing HSW's civil equipment arm began in January 2010. In November of the same year, both parties signed an agreement of intent.

HSW also has a military equipment production arm, although there are no plans to privatize this.

Tuesday's meeting was also attended by the director of the Chinese Ministry of Industry and Information, Zhang Xiangmu, the chairman of the board of directors at Liugong, Wang Xiaohua, and the president of HSW, Krzysztof Trofniak. (by Katarzyna Piasecka)

From Warsaw Business Journal