On 31 of January 2012, the final agreement was signed between HSW and Liugong companies to take over the business of HSW construction equipment by the Chinese investor.
As of February 1, Oddział I HSW operates as Liugong Machinery Poland.
The definitive agreement was signed in the form of a notarial deed on January 31. It was possible because the conditions stated in the conditional agreement which was signed earlier were fulfilled: Firstly, Industrial Development Agency has not exercised its right of pre-emption of land located in the industrial zone of Stalowa Wola. Secondly, the investor transferred the agreed amount of money (a part of the total purchase amount) to the HSW bank account.
Liugong Machinery Poland, located in Stalowa Wola, combines technical capacity, technology and human know-how of Huta Stalowa Wola S.A. with the potential for development and global resources of the Guangxi Liugong Group.
The proceeds from transactions involving the sale of construction machinery business to a new company, will be spent on production modernization investments and this way will be used to strengthen HSW leader position in the Polish military industry. “I'm glad we were able to attain to the transaction” said Mr Krzysztof Trofiniak, president of Huta Stalowa Wola S.A. “For us it was more than two years of negotiations, preparations of several hundred pages of contracts”. He can see good prospects for both companies: Liugong and HSW. “The privatization model that we have developed, together with our Chinese partner, is really unique. It involves balancing the interests of all the parties concerned to meet the needs of staff and trade unions, the interests of the city and of the region's economy”.
After the sale of Oddział I for Liugong Machinery Poland, Huta Stalowa Wola S.A. will specialize in the production of armaments and delivering of cooperative services. Currently, HSW revenue from military and cooperative transactions reaches more than 300 million zlotych.
“However, through all the time, almost to the date of the transaction, we have kept developing our construction machinery business as well. We were prepared for all eventualities, and conducted negotiations as an equal and equivalent partner” says Mr Krzysztof Trofiniak. “In 2011, we increased sales of construction machinery in the country with more than 30%, while exports increased by 27%. Therefore, we could negotiate a good price and good conditions of sale. However, today's construction market is ruthless, without facilities such as those of Liugong, HSW machines would have been squeezed out of the markets. Now they have a chance to exist in these markets and win with the best Western companies”
The 1st of February 2012 date gains almost historical symbolism. HSW construction equipment business, with its nearly 60-year old tradition, linked over the years with high-tech English, Japanese and American partners, now passes into the hands of Chinese global corporation. “Huta Stalowa Wola S.A. will of course cooperate with the new company. We will provide important components for construction machinery, and also our mutual settlements will continue for the next month. We promise to keep our fingers crossed for the new company and to support it whenever possible ” - declared Christopher Trofiniak, President of HSW.list of articles