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    Flags flutter in front of a KraussMaffei company building in Munich, Germany, January 11, 2016

    China Buys German Plastics Co. for $1Bln Even as Markets Crash at Home

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    Despite China's stock market plunge a consortium of Chinese investors has bought KraussMaffei, one of Germany's largest machinery suppliers, for 925 million euros.

    A group of Chinese investors has bought the KraussMaffei Group for 925 million euros ($1 billion), the company announced on Monday.

    The KraussMaffei Group is a leading supplier of machinery and systems for producing and processing plastics and rubber. It provides products for a wide range of industrial sectors including for the automotive, building, and consumer goods industries.

    The consortium is formed by state-owned China National Chemical (ChinaChem), and the investment firms Guoxin International Investment Corporation and AGIC Capital. 

    "We are investing in the Company’s strong management team and its technological expertise," stated Jianxin Ren, Chairman of ChemChina.

    This "will benefit our Chinese subsidiaries and position the chemical machinery business of ChinaChem, which build and sell equipment for the rubber and chemical industry, to become a pioneer in achieving the 'Made in China 2025' program." 

    "We expect trends in the automotive industry towards advanced manufacturing and lightweight components will provide a huge development opportunity for the high-end plastic injection molding industry. Together, ChemChina and the KraussMaffei Group will be well positioned for future growth."

    ChinaChem is China’s largest chemicals group and has approximately 140,000 employees, 45,000 of whom are located outside China. In 2015 it generated revenues of around €37 billion; in March the company purchased Italian tyre-maker Pirelli in a deal worth 7.1 billion Euros ($7.7 billion).

    The deal was one of 136 made by Chinese investors abroad in 2015, which were worth a record $31.3 billion in total.

    The previous record Chinese investment in a German firm was set in 2012. Machinery manufacturing company Sany Heavy Industry Co Ltd spent $698 million on Putzmeister, the world's largest concrete pump manufacturer which provided the pumps that cleaned up after the Chernobyl and Fukushima disasters.

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