Sichuan Tengzhong Heavy Industrial Machinery Company
Encyclopedia
Sichuan Tengzhong Heavy Industrial Machinery Company Ltd , usually shortened to ) is based in Chengdu
, China
. Sichuan Tengzhong is a privately owned company known for making a wide range of road
equipment, such as bridge
pier
s, highway
construction
and maintenance
machinery. Sichuan Tengzhong has been moving more into heavy-duty trucks, including tow truck
s and oil tanker
s.
announcement, GM revealed that Hummer
brand would be discontinued. However, the following day GM announced that instead it had reached a deal to sell the brand to an undisclosed buyer. On June 2, 2009 GM announced the sale of Hummer to a non-disclosed Chinese company. The New York Times reported Tuesday that the buyer would be the Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., a machinery company in western China. Late Tuesday Sichuan Tengzhong itself posted it on their own website. The transaction was expected to close in the third quarter of 2009, subject to customary closing conditions and regulatory approvals. Financial terms of the agreement were not disclosed. Credit Suisse is acting as exclusive financial advisor and Shearman&Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.
General Motors announced on October 9, 2009 that they have sold their entire stake in the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery and a group of private investors (Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, will hold the remaining 20 percent stake.). Sichuan now owns 80% of the company, Autoblog reports. The sale will net GM around $150 million, although the transaction still has to be approved by both U.S. and Chinese regulatory agencies, which is anticipated to occur this year (2010).
The deal includes manufacturing to continue in the two plants that GM already uses to produce the Hummer trucks through June 2011, with a possible extension until 2012.
Prior to the 2009 sale a handful of other Chinese automakers, including Chang Feng
, expressed interest in the brand, but all declined to make a formal offer.
On February 24, 2010, The Ministry of Commerce
of the People's Republic of China
rejected Tengzhong's bid to purchase Hummer from General Motors
.
Chengdu
Chengdu , formerly transliterated Chengtu, is the capital of Sichuan province in Southwest China. It holds sub-provincial administrative status...
, China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
. Sichuan Tengzhong is a privately owned company known for making a wide range of road
Road
A road is a thoroughfare, route, or way on land between two places, which typically has been paved or otherwise improved to allow travel by some conveyance, including a horse, cart, or motor vehicle. Roads consist of one, or sometimes two, roadways each with one or more lanes and also any...
equipment, such as bridge
Bridge
A bridge is a structure built to span physical obstacles such as a body of water, valley, or road, for the purpose of providing passage over the obstacle...
pier
Pier
A pier is a raised structure, including bridge and building supports and walkways, over water, typically supported by widely spread piles or pillars...
s, highway
Highway
A highway is any public road. In American English, the term is common and almost always designates major roads. In British English, the term designates any road open to the public. Any interconnected set of highways can be variously referred to as a "highway system", a "highway network", or a...
construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
and maintenance
Maintenance, Repair and Operations
Maintenance, repair, and operations or maintenance, repair, and overhaul involves fixing any sort of mechanical or electrical device should it become out of order or broken...
machinery. Sichuan Tengzhong has been moving more into heavy-duty trucks, including tow truck
Tow truck
A tow truck is a vehicle used to transport motor vehicles to another location , or to recover vehicles which are no longer on a drivable surface.Towing services are generally provided by an emergency road service operator...
s and oil tanker
Oil tanker
An oil tanker, also known as a petroleum tanker, is a merchant ship designed for the bulk transport of oil. There are two basic types of oil tankers: the crude tanker and the product tanker. Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries...
s.
Hummer
On June 1, 2009, as a part of General Motors Chapter 11 reorganizationGeneral Motors Chapter 11 reorganization
The General Motors Chapter 11 sale of the assets of automobile manufacturer General Motors and some of its subsidiaries was implemented through section 363 of Chapter 11, Title 11, United States Code in the United States Bankruptcy Court for the Southern District of New York...
announcement, GM revealed that Hummer
Hummer
Hummer was a brand of trucks and SUVs, first marketed in 1992 when AM General began selling a civilian version of the M998 Humvee. In 1998, General Motors purchased the brand name and marketed three vehicles: the original Hummer H1, based on the Humvee; and the H2 and H3 models that were...
brand would be discontinued. However, the following day GM announced that instead it had reached a deal to sell the brand to an undisclosed buyer. On June 2, 2009 GM announced the sale of Hummer to a non-disclosed Chinese company. The New York Times reported Tuesday that the buyer would be the Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., a machinery company in western China. Late Tuesday Sichuan Tengzhong itself posted it on their own website. The transaction was expected to close in the third quarter of 2009, subject to customary closing conditions and regulatory approvals. Financial terms of the agreement were not disclosed. Credit Suisse is acting as exclusive financial advisor and Shearman&Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.
General Motors announced on October 9, 2009 that they have sold their entire stake in the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery and a group of private investors (Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, will hold the remaining 20 percent stake.). Sichuan now owns 80% of the company, Autoblog reports. The sale will net GM around $150 million, although the transaction still has to be approved by both U.S. and Chinese regulatory agencies, which is anticipated to occur this year (2010).
The deal includes manufacturing to continue in the two plants that GM already uses to produce the Hummer trucks through June 2011, with a possible extension until 2012.
Prior to the 2009 sale a handful of other Chinese automakers, including Chang Feng
Chang Feng
GAC Changfeng Motors Co Ltd. abbreviated CMC is a Chinese SUV manufacturer. A state-owned enterprise but also a public company, Changfeng solely produces SUVs and most sales have been to the Chinese state....
, expressed interest in the brand, but all declined to make a formal offer.
On February 24, 2010, The Ministry of Commerce
Ministry of Commerce of the People's Republic of China
The Ministry of Commerce of the People's Republic of China , formerly Ministry of Foreign Trade and Economic Co-operation is an executive agency of the State Council of China...
of the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
rejected Tengzhong's bid to purchase Hummer from General Motors
Motors Liquidation Company
Motors Liquidation Company , formerly MTLQQ on OTC Pink, was the company left to settle past liability claims from General Motors Chapter 11 reorganization...
.