KraussMaffei Expands Investment in Asian Polyurethane Machinery Market
After several provocations, "Xinyang Bearing" finally found its way forward. On May 27, Fuyang Bearing officially announced that it had received approval from the Hubei Provincial People’s Government on May 26, 2009. The announcement was issued by the People's Government of the People's Republic of China regarding the transfer of 95% of the state-owned shares in Liyang Automotive Bearing Group Co., Ltd. These shares were transferred to Sanhuan Group by Xiangfan City's SASAC, making Shenyang Automotive Bearing Group Co., Ltd. a subsidiary of Sanhuan Group.
It is understood that the actual controller of Sanhuan Group is the Hubei Provincial SASAC. The group focuses on the production and operation of special vehicles, military vehicles, auto parts, and CNC forging presses. In 2008, the total assets of Sanhuan Group reached 8.3 billion yuan.
The reorganization agreement between Sanhuan Group and Shenyang Automotive Bearing Group Co., Ltd. stipulates that the Xiangfan City People’s Government agrees to transfer the 95% equity interest of Yanzhou Group to Sanhuan Group without compensation. Additionally, Sanhuan Group is required to invest no less than RMB 300 million in Yanzhou Group over the next two years, or the reorganization will be terminated.
Liao Yonggao expressed uncertainty about how exactly the 300 million yuan would be invested. However, the vision of Hubei Province is clear: to build an "aircraft carrier" in the auto parts industry.
On February 17 this year, Hubei Provincial Governor Li Hongzhong visited Sanhuan Group and urged the company to become the "aircraft carrier" of the auto parts sector in Hubei. Sanhuan Group has already expanded its market presence and provided auto parts support for at least 10 major Chinese automakers. Continuing to focus on traditional auto parts has become one of the key strategic goals for the group.
Two months after the visit by Governor Li, the Hubei State-owned Assets Supervision and Administration Commission swiftly acted, transferring the stake in Yanzhou Group to Sanhuan Group. After merging into Sanhuan Group, the initial plan is to expand and strengthen the main business of Xinyang Bearing. Since Sanhuan Group does not currently have any assets related to automobile bearings, there are no immediate plans for asset injection.
He Yixin, Director of the controlling listed company of Sanhuan Group (000883.SZ), stated that once Sanhuan Group indirectly controls Xinyang Bearing, it will not affect the development of the three-ring shares.
"The most urgent task now is to revitalize the core business of Xinyang Bearing," He Yixin said. "This company used to be the fourth-largest bearing factory in China, but that was ten years ago. Today, the domestic consumption in this industry reaches 100 billion yuan, yet Xinyang Bearing only accounts for 5 billion yuan, with a very low market share."
Chairman Shu Jian confirmed He Yixin’s comments. "Sanhuan Group aims to complete the operation of Yanzhou Group and establish itself as the aircraft carrier for Hubei's special vehicle and auto parts industry. This will bring better development opportunities," he added.
Sanhuan Group has set ambitious goals, including exceeding 10 billion yuan in output value by the end of the "Eleventh Five-Year Plan" and over 20 billion yuan by the end of the "Twelfth Five-Year Plan." The recent reorganization of the Third Ring Group is considered a crucial step toward building an industrial aircraft carrier in Hubei.
Shu Jian noted that the reorganization of Sanhuan Group and Yanzhou Group, both specializing in auto parts, will create significant synergies and allow them to benefit from the booming automotive industry. Hubei Province also hopes to position Sanhuan Group as the leading force in the province's special vehicles and auto parts industry.
Furthermore, the acquisition of Yanzhou Group is part of the Third Ring Group's product structure adjustment. According to Shu Jian, the current acquisition involves only the group level and has no direct impact on the listed companies under the Third Ring Group.
Sources familiar with Sanhuan Group revealed that the group may reorient its two listed companies. Xinyang Bearing is likely to be positioned as an auto parts company, while Sanhuan Group could be repositioned as a vehicle company.
Colloid Mill,Biological Products Colloid Mill,Dairy Product Colloid Mill,Peanuts Colloid Mill For Food
Jiangyin Longchang Machinery Manufacturing Co,Ltd , https://www1.jylongchanggrinderline.com