China Direct Industries Inc.
China Direct Industries, Inc. operates in two core business segments; pure magnesium production and distribution and the distribution of basic materials in China.
See more information about China Direct Industries Inc.
China Direct Industries to set up heavy truck production JV
U.S.-owned holding company China Direct Industries Inc (NASDAQ: CDII) has signed a letter of intent to form a heavy truck JV, looking to grab a piece of the growing market and expand a core business segment in China.
The company signed a letter of intent to form Jinan Zhongsen Machinery Company as a foreign invested enterprise and will dish out USD 3.3 million over the next 5 years to acquire a 45% interest in the company, which has generated USD 15 million of revenue and a net profit of USD 1.6 million last year.
Zhongsen has been able to step up its performance this year, posting half year revenues of USD 9.3 million and a net profit of USD 1.4 million.
CDII hopes the investment will help the JV expand and cover more of China's heavy truck market as the country currently accounts for 30% of the global annual heavy truck production of 3.6 million units. Exports of heavy trucks from China are increasing too, doubling in just the past few years, according to CDII.
"We believe the demand for parts will continue to grow as customers attempt to increase the life of their capital investment. We believe these factors, coupled with China's continued growth in market share, make this industry an excellent opportunistic investment for our company. We are confident that when this transaction is completed the management team at Zhongsen Machinery has the right plan to deliver rapid, profitable sales growth in the coming years, making it a welcome addition to our Basic Materials Segment," said CDII CEO and Chairman James Wang.
Other China Direct Industries Inc. news
- China Direct Industries to ramp up magnesium ingot production
2010-05-07 - China Direct Industries partners with China Armco to source metals
2009-08-25
