China’s push to develop large-scale, modernized domestic agriculture, combined with a decline in demand for machinery to build high-rise buildings is prompting Chinese construction equipment makers to expand into agricultural equipment. China’s Zoomlion Heavy Industry Science & Technology Co. Ltd. Is bidding US$340 million to acquire a 60% stake in farm machinery company Chery Heavy Industry Co. Ltd. in a move that is hoped would launch Zoomlion to become one of the biggest agricultural machinery producers in China. China’s mechanization drive has attracted global farm machinery companies to expand in the country and Zoomlion hopes that this acquisition will help it compete with international rivals such as John Deere and CNH.
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