Lingong Group announced that after friendly negotiations with Volvo CE, the two parties have officially signed an agreement. Lingong Group will acquire 70% of the equity of Shandong Lingong Engineering Machinery Co., Ltd. (hereinafter referred to as Shandong Lingong) held by Volvo CE through a newly established fund.

After the completion of the agreement, Lingong Group will control the ownership and management rights of Shandong Lingong.

Since 19 years of cooperation between Shandong Lingong and Volvo, the company has made significant progress, with sales revenue and annual compound growth rate of profits and taxes reaching over 10%. During this period, Volvo provided strong support in product, quality, technology, management, and other aspects. Shandong Lingong's strength in core areas such as product research and development, lean manufacturing, and quality control has significantly improved, playing an important role in the company's participation in market competition, establishing brand image, increasing market share, and economic benefits. The cooperation between the two parties was successful.

Currently, facing the complex domestic and international market situation, influenced by factors such as intensified competition in the domestic market, industrial restructuring in the international market, and geopolitical landscape, especially the need for Lingong to accelerate international development and promote global industrial layout, both parties believe that this transaction will be beneficial for the long-term development of both parties in the future.

In the future development, both parties still have the opportunity to carry out different forms of strategic cooperation in multiple business fields, and jointly achieve better development. (This article is from the official website of Jiandao www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jiandao website+original link when reprinting.) Jiandao website's state-owned enterprise reporting column editor/Yang Beihua