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SMT Scharf further expands activities in China

 

Hamm, 31 January 2018 – SMT Scharf AG (WKN 575198, ISIN DE0005751986) has agreed a strategic partnership with leading Chinese mining group Shanxi Lu’an Coal Technology Equipment Co., Ltd. A joint venture has been formed for this purpose to promote sales as well as service & after-sales business for specific transport systems for Chinese mining. With a 51 % interest, Shanxi Lu’an Coal Technology Equipment Co., Ltd. is the majority shareholder in the strategic joint venture Shanxi An’de Auxiliary Transportation Co., Ltd. SMT Scharf AG is acquiring a 40 % interest in the joint venture, while Shanxi Lu’an Haitong Industry & Trade Co., Ltd. is the third partner with a 9 % interest. SMT Scharf will invest in the mid sixdigit euro range in the partnership. Hans Joachim Theiss, CEO of SMT Scharf AG, explains the background to the partnership: “China – the world’s largest coal producer – ranks among the most important foreign markets for SMT Scharf, one of the world’s leading providers of underground transportation solutions and logistics systems. All the Chinese Lu’an Group’s requirements in terms of SMT Scharf Group products will be served by the new joint venture. This wide-ranging access to the mining group also includes replacement parts supplies and services. As part of the partnership, we will benefit from our many years of experience in sales and from our local after-sales organisation.” Scharf Mining Machinery (Xuzhou) Co., Ltd., which was founded in 2013, is to ship mono- and duo-rail products in the future. Furthermore, Shandong XinSha Monorail Co. Ltd., SMT Scharf’s second joint venture in China, supplies basic mechanical products. Theiss adds: “We are consistently expanding our business activities in China with our second sales-based joint venture, pursuing the objective of further strengthening our market position in the important Chinese market and exploiting the growth opportunities on offer to us.”

Company Profile
The SMT Scharf Group develops, builds and maintains transport equipment for underground mines as well as for tunnel construction sites. The main product consists of rail-bound railway systems which are used primarily in coal mines and for the underground mining of gold, platinum and other ores. There they transport men and material up to a payload of 48 tons on routes with inclines of up to 30 degrees. SMT Scharf also supplies chairlifts to the mining industry. In addition, the company offers rubber-wheeled diesel and electric vehicles for mining and tunnelling applications through the newly acquired mining specialists RDH Mining Equipment. As a leading supplier of battery-driven vehicles with lithium-ion technology for underground mining, RDH complements SMT Scharf’s portfolio with its diverse product range stretching from loaders and scissor lifts to underground trucks. Overall, the SMT Scharf Group has its own companies in eight countries as well as distributors around the world. SMT Scharf generates most of its sales in growth markets abroad such as China, Russia, Poland and South Africa. SMT Scharf AG has been listed in the Prime Standard (Regulated Market) on the Frankfurt Stock Exchange since 2007.

Contact
Investor Relations
cometis AG
Thorben Burbach
Tel: +49(0)611 – 205855-23
Fax: +49(0)611 – 205855-66
Email: burbach@cometis.de