Linamar Corporation (TSX:LNR) has announced a significant move to expand its Skyjack division’s presence in the Chinese and Asian markets with the signing of an investment agreement with the Government of Binhai New Area, Tianjin to manufacture Skyjack product for the Asia-Pacific market in the region. The new facility will manufacture product under the Skyjack brand and play a central role in the continued development of Skyjack’s Asia-Pacific region.
Initially Skyjack will develop and utilize manufacturing capability and facilities within Linamar’s existing Tianjin plant, with the product focus being on DC scissor lifts targeted at the domestic Chinese market. In addition to the establishment of manufacturing capability in China, Skyjack is increasing its sales and service operations to promote product to China’s growing rental industry. Skyjack has appointed Mr. Chan Tran as VP Operations – Asia-Pacific to lead these activities. As volume builds, Skyjack will invest in a dedicated purpose-built facility in the region to enable solid growth in Asia-Pacific.
Commenting upon the deal Linda Hasenfratz, Linamar CEO, said, “The Asian market has started to grow in a meaningful way in recent years making the establishment of in region manufacturing not just viable but highly opportunistic. We believe this will create excellent growth potential for Skyjack in the region both in terms of creating a close connection to the needs of our customers in the region and in terms of building our distribution network.”
Commenting further Ken McDougall, Skyjack President, added, “I particularly want to pay tribute to the local government of the Binhai New Area for their help and assistance in securing this plan. We look forward to our continued partnership as we expand our Asian footprint. Utilizing a more global footprint also releases existing production capacities in our existing plants across the globe. That in turn will allows us to better react to growing customer demand in those markets.”
Chan Tran, Skyjack Asia-Pacific VP Operations, said, “The Skyjack Tianjin facility is forecast to go into production in Q3 2023 and manufacture DC scissor lifts and telescopic/articulating booms. Linamar entered the China market in 2005 and with five facilities and one research and development center, I believe the relationship and physical footprint can be significantly leveraged should the need arise.”
Mr. Shan, Deputy Secretary of the District Committee; District Director, Binhai New Area, said the Skyjack name is well regarded in China and that his organization is honored and looks forward to being a part of the activities that will see Skyjack’s market position grow impressively.
