BEIJING (XFN-ASIA) - Sweden's Volvo AB is currently in talks regarding a 'possible tie-up' with Shandong Lingong Construction Machinery Co Ltd, a company official with the Chinese construction machinery maker told XFN-Asia.
The official declined to say whether the tie-up would involve a stake purchase.
Shandong Lingong, which posted 2005 sales of 2.03 bln yuan, is currently 98.68 pct owned by Shandong Heungkong Holding Co Ltd (SHA 600162).
Volvo already has a wholly-owned construction machinery manufacturing unit in Shanghai. State media reported that it has been in stake talks with several Chinese local machinery makers since last year.
The official declined to say whether the tie-up would involve a stake purchase.
Shandong Lingong, which posted 2005 sales of 2.03 bln yuan, is currently 98.68 pct owned by Shandong Heungkong Holding Co Ltd (SHA 600162).
Volvo already has a wholly-owned construction machinery manufacturing unit in Shanghai. State media reported that it has been in stake talks with several Chinese local machinery makers since last year.
