Chinese investors are continuing their shopping spree in Europe. In the latest move, the Asian country's state-owned China National Chemical Corp. has acquired Munich-based German machinery maker KraussMaffei.
China's largest chemical company said Monday it had bought KraussMaffei, a German maker of machinery to expand its capacity for processing rubber and plastic.
Also known as ChemChina, the chemicals giant was reported to have paid $1 billion (925 million euros) for the acquisition. It is the biggest single Chinese investment to date in Germany.
The company emphasized the deal would help to expand its product range.
ChemChina said it would keep KraussMaffei's headquarters in Munich and its production and research operations in Europe.
State-owned ChemChina has long been one of country's most active investors abroad, buying companies in France, Britain and Israel. Last year, it agreed to pay $7.7 billion for Italian tire maker Pirelli.
KraussMaffei has a workforce of 4,500 globally, with 2,800 employees located in Germany. The company started out as a maker of locomotives in 1839. In the 1930s, it also began producing tanks.
It later spun off its arms manufacturing segment into KraussMaffei Wegmann (KMW).
hg/cjc (dpa, Reuters)