SMS Group (Meinerzhagen / Germany; www.sms-k.com) has taken over the 40% interest held by Chen Hsong Holdings (Hong Kong) in their Chinese joint venture. This means that the Battenfeld Extrusion Systems Ltd (Shunde, Guangdong / China), formerly Battenfeld Chen Extrusion Systems Ltd, is now a wholly own subsidiary of SMS. At its Shunde site, the company manufactures machines for pipe and profile extrusion as well as film extrusion lines. It also has marketing offices in Beijing, Shanghai, Hunan and Fujian.

Battenfeld Chen was established ten years ago to offer the Chinese market technically advanced extrusion lines conforming to Western engineering standards, but produced locally. The technical know-how was supplied by SMS group companies Battenfeld Extrusionstechnik (Bad Oeynhausen / Germany) and Battenfeld Gloucester Engineering (Gloucester, Massachusetts / USA). Chen Hsong contributed its marketing experience in China.

The joint venture is now one of the leading manufacturers of extrusion lines in China, claims SMS. As Harold F. Wrede, chairman of the Chinese subsidiary, pointed out at a press conference during "Chinaplas 2006", the cooperation with Chen Hsong was of "inestimable value" for expanding the German company´s Chinese extrusion activities.

The change in ownership is also said to reflect the new strategic alignment of both partners. SMS´s preference is to manage all its companies as wholly owned subsidiaries, while Chen Hsong, one of the leading global manufacturers of injection moulding machines, is focused on further expanding its core business.

At the end of last year, another German machinery manufacturer, Demag Plastics Group (DPG, Schwaig / Germany; www.dpg.com), took full control of its former Chinese manufacturing joint venture, Demag-Haitian Plastics Machinery – see Plasteurope.com Web of 19.01.2006.