Beijing and Hong Kong, August 3, 2011 – Welkin today announced a growth equity investment in Sinomachinery, a leading off-road power systems maker in China, to support the further expansion of production capacity and the introduction of new products. With Welkin’s investment, Sinomachinery plans to launch new diesel engine products with Euro 4 emission standards that are designed for a broader array of applications, such as agricultural machinery.
“Sinomachinery is currently the dominant supplier of forklift engines in China. We plan to achieve similar levels of success in the agricultural market in the coming years by leveraging our proprietary technology, extensive local distribution networks and low cost structure. Increasingly strict emission standards worldwide represent an exciting growth opportunity for Sinomachinery. We are one of few companies in China with the know-how to build efficient, environmentally friendly power systems for off-road vehicles at competitive prices. Furthermore, Chinese government policies encouraging increased levels of agricultural mechanization will increase demand for our products,” added Xianwei Zhu, the Chairman and CEO of Sinomachinery.
Christopher Fong, a Managing Director of Welkin, added: “We are pleased to become a partner of Sinomachinery. Welkin is well positioned to add immense value to their business by leveraging its deep networks and knowledge in the machinery sector. Our focus is to help the company enter new market niches and rapidly gain market share.”
Welkin is a China-focused mid-market growth equity investment firm with a distinguished family heritage and strong entrepreneurial roots. Founded in 2009, Welkin invests in niche-leading, growth stage companies in China on behalf of global institutional investors and the firm’s employees. Welkin deploys its local resources, industry knowledge, and operating expertise, to drive impactful value creation and help companies achieve their full growth potential. For more information, please visit www.welkincapital.com.
About Sinomachinery Holdings Limited
Founded by Chairman and CEO Xianwei Zhu, Sinomachinery is a leading off-road power systems maker in China, with over 600 repair and distribution centers nationwide. The company designs, develops and markets small and medium-sized, environmentally-friendly diesel and propane engines, transmission engines and related accessories for use in forklifts, tractors, harvesters and other off-road vehicles. For additional information, please visit Sinomachinery’s website at www.sinomachinery.com.