China North Industries to gobble up XCMG

Beijing - XCMG Construction Machinery Co Ltd, China's largest construction machinery maker, confirmed on Tuesday that China North Industries Group Corp will take over the company, according to an XCMG official.

The company spokesman said the agreement was signed between China North Industries and the government of Jiangsu province where XCMG is located, without disclosing any details on the acquisition.

According to the agreement, China North Industries will invest 15 billion yuan ($2.2 billion) between 2011 and 2015 to build research and production bases for construction machinery and vehicles, optoelectronics and chemical engineering.