Weichai Group has completed the strategic restructuring of Lovol Heavy Industry Co, according to a news conference held by the company on Jan 6 in Jinan, capital of Shandong province.

The news conference is held on Jan 6 in Jinan, capital of Shandong province. [Photo provided to chinadaily.com.cn]

The two sides will work together to leverage their resources, accelerate the mechanization and intelligentization of China's agriculture, and promote the high-end development of domestic agricultural equipment, said Tan Xuguang, board chairman of Weichai Group.

Weichai Group and Lovol Heavy Industry Co signed a strategic reorganization agreement on Dec 1, 2020.

After the restructuring, Weichai Group now holds a 60 percent stake of Lovol Heavy Industry Co, while Tianjin Lovol holds a 38.62 percent stake, making Weichai the controlling shareholder of Lovol Heavy Industry Co.

Products of Weichai Group and Lovol Heavy Industry Co [Photo provided to chinadaily.com.cn]

Lovol Heavy Industry Co is a leading agricultural equipment brand in China. Its harvesting machinery, tractors, and other products have been leading China for nearly 20 years, and it has established more than 1,000 professional distribution and service systems throughout the country.

In 2020, the operating income of Lovol Heavy Industry Co reached 14 billion yuan ($2.17 billion), and total sales of agricultural machinery hit 80,000 units, putting it in an industry leading position.

Weichai Group is a leading internal combustion engine producer and one of the largest heavy truck developers based in Weifang, Shandong province. Its engine sales in 2020 surpassed 1 million units despite the COVID-19 pandemic, more than any other company in the world.

The restructuring is expected to fuel the high-quality development of Shandong's agricultural equipment and accelerate the province's rural development, said local officials.