 Two market leaders complement each other regarding product portfolio and market coverage
 Together the companies will increase their position in the growing Chinese concrete machinery market as well as in other countries
 Headquarter of SCHWING Group remains in Germany under the continuous lead of Gerhard Schwing as CEO
 Both companies guarantee to secure German sites until 2017

Herne, 19 April 2012. SCHWING Group ("SCHWING"), international leading system supplier for concrete machinery in the premium sector as well as parent company of Stetter GmbH and
Xuzhou Construction Machinery Group ("XCMG"), the seventh biggest construction machinery manufacturer in the world and the no. 1 in China, plan to enter a strategic partnership. XCMG will acquire a majority interest in SCHWING. The German traditional manufacturer under the leadership of CEO Gerhard Schwing will complement the product portfolio of XCMG in the premium segment in the growing Chinese concrete machinery market as well as the worldwide production, service and distribution network outside China. The SCHWING management remains in Herne and will continue to work independently.

With XCMG, SCHWING secures its growth perspective and gains a financially strong industrial partner. XCMG and SCHWING guarantee to secure German sites until 2017. Together the
companies aim to extend their global market shares. Therein, the Chinese market offers the biggest growth potential worldwide. The agreement that has been signed by the two companies is subject to approval of the competent authorities. The Partners have agreed to keep the details of the transaction confidential.

"Thanks to its innovative products of the highest quality, SCHWING is the optimal partner for XCMG. The premium brand SCHWING is a key component of the strategic development of
XCMG", says Wang Min, Chairman of XCMG. "The merger allows two of the world's market leaders to complement each other perfectly in their market coverage as well as product and
service portfolio. With today's agreement on a strategic partnership we consequently pursue the strengthening of our market positions and create substantial potential for further development."

"SCHWING can expect the biggest growth globally in the Asian market. A presence in the Asian markets offers massive growth potential in the construction industry. This will be the decisive economic advantage for us", says Gerhard Schwing, CEO of SCHWING. "We have found a partner in XCMG that allows us to position and establish our expertise and experience in this region sustainably. Together with our employees and XCMG we will substantially increase our leading international market position.

Both companies are innovation leaders in their markets. Following the merger, XCMG and SCHWING aim to promote their innovation activities together. Pioneering technology achievements of both companies shall continue to set international standards in the future. XCMG invests annually over 5 % of the sales income in R&D and by the end of 2011 has been awarded nearly 1,000 patents in total.

SCHWING develops, produces and sells the entire product portfolio of concrete machinery technology for a global market. The batch plants, truck mixer, concrete pumps and recycler are found at construction sites worldwide. The company is headquartered in Herne, Germany, and has production sites in Germany, Austria, Brazil, USA, China and India as well as subsidiaries and representations in more than 100 countries.

Established in 1989, XCMG especially develops, produces and sells construction machinery and major high-tech equipment such as heavy-duty trucks, cranes, earthmoving and road building equipment. XCMG continues its successful long-term cooperation agreements with internationally well-known companies e.g. ThyssenKrupp AG and Meritor Co.

About SCHWING
SCHWING Group (SCHWING) is the international leading manufacturer of premium concrete machinery with its headquarters in Herne, Germany. The group's portfolio covers the entire scope of concrete machinery technology. These include supplementary quality machinery for the production, transport, placing and recycling of concrete. SCHWING GmbH is the parent company of Stetter GmbH that is specialized in batch plants and truck mixer. SCHWING Group has about 4,000 employees 1,000 out of it in Germany. Since 1980, Gerhard SCHWING, the company founder's son, is CEO of the company.

About XCMG
Xuzhou Construction Machinery Group (XCMG) is the seventh biggest in the world and keeps the first position in China construction machinery industry for 23 straight years. The listed company is headquartered in Xuzhou, China, and offers a broad product range, especially machinery for construction and maintenance of roads, cranes, loading machines and heavy-duty trucks, special purpose vehicles and basic components. China is the core market of the group – additionally, the company exports its products in about 130 countries.
XCMG employs more than 21,000 people. The company aims to become one of the top three construction machinery producers in the world.