JINAN, Jan. 7 (Xinhua) -- Weichai Holding Group Co., Ltd., a leading Chinese powertrain manufacturer, has acquired a controlling stake in Lovol, one of the country's major agricultural equipment makers.
According to a strategic restructuring agreement, Weichai Group took a 60 percent stake in Lovol Heavy Industry CO., Ltd. while Tianjin Lovol holds 38.62 percent.
Weichai's businesses cover powertrain, commercial vehicle, construction machinery, intelligent logistics and marine transportation equipment. The acquisition marks its official entry into agricultural machinery manufacturing.
Weichai Group and Lovol Heavy Industry will work together to roll out more high-end agricultural equipment to promote China's agricultural mechanization with more intelligent choices and help boost rural vitalization, said Tan Xuguang, chairman of Weichai Group, on Wednesday.
Lovol Heavy Industry will focus on high-end agricultural equipment and achieve annual revenue of 50 billion yuan (about 7.8 billion U.S. dollars) by 2025, becoming a new growth driver of Weichai Group, Tan said.
Lovol Heavy Industry generated revenue of 14 billion yuan in 2020 with a total sales of 80,000 units of agricultural machinery. Enditem
