Zoomlion nears deal for heavy-truck joint venture in diversification push

The mainland's construction equipment maker Zoomlion Heavy Industry Science and Technology is close to signing a heavy-truck joint venture with a major global player as it seeks to diversify the types of equipment it manufactures and sells, its chairman said yesterday.

Zoomlion, which was hit hard by an industry downturn last year, would resume growth this year, helped in part by the mainland's urbanisation drive, Zhan Chunxin said.

"I expect to see replacement demand in coastal cities as they retire old machines. Second- and third-tier cities will also be good as they are still in early development stage," Zhan said.

Zoomlion, seeking to transform itself into a diversified manufacturer, has been in talks with several global truck heavyweights for a 50-50 vehicle and engine venture on the mainland.

"The joint venture will be a major player in the medium to higher-end heavy-truck segment in China, both in terms of capacity and technology know-how," he said.

Other global truck makers have also set their sights on the mainland where a massive urbanisation drive is pushing up demand for heavy trucks.