FLEETS

SGH sells WesTrac China

Seven Group Holdings (SGH) and Lei Shing Hong Machinery (LSHM) have announced an agreement in which LSHM will acquire WesTrac China for a total consideration of A$540 million (US$426 million), subject to completion adjustments and the PRC regulatory approval

Staff reporter
SGH sells WesTrac China

PRESS RELEASE: WesTrac China commenced operations in 2001 in the territories of Shanxi, Hebei, Liaoning, Inner Mongolia, Heilongjang, Jilin, Beijing, and Tianjin.

In close partnership with Caterpillar, WesTrac China has forged close customer relationships and established a leading market presence in these territories, benefiting from the growth in northeast of China during this period.

Ryan Stokes, managing director and CEO of SGH, said: “The sale of WesTrac China will allow us to reallocate capital into other opportunities in Australia, including investment in our WesTrac Australia business. We are proud to have built a market leading position in northeast China and we are confident that under the ownership of Lei Shing Hong Machinery – a major Cat dealer in China – our customers will continue to benefit from innovation and first-in-class service.”

He added: “WesTrac China has been a strong performing business for SGH and this is the right time to realise the value of what we have achieved. It also demonstrates the success of the WesTrac China strategy under the leadership of Lawrence Luo with SGH’s support and capital backing over the past seventeen years. SGH’s relationship with Cat remains one of our most important and enduring partnerships, and we continue to be strong supporters of their dealership model. We remain interested in any additional dealership opportunities with Caterpillar.”

Lawrence Poh, managing director and CEO of LSHM, said: “We are excited about the opportunities presented by this transaction to deliver and exceed customer expectations seamlessly across a larger footprint, consolidating our market leading presence in China.”

SGH and LSHM recognise the fundamental role that Cat played in sanctioning the sale and note the continued strength of their respective relationships with the world’s largest equipment manufacturer.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Magazine Intelligence team.

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