China's Agricultural Machinery Industry Policy and Corporate News in 2011

â–  Policy:

1. On January 11, 2011, the Ministry of Agriculture promulgated the National Plan for the Implementation of Agricultural Machinery Deep Loosening Site Preparation (2011-2015). The plan points out that it is necessary to implement a subsidy policy for deepening farm machinery in suitable areas. By 2015, all areas in the country will be fully relaxed.

2. The Ministry of Agriculture issued the Measures for the Handling of Agricultural Machinery Accidents on January 12, 2011, which was implemented on March 1 of the same year. The method pointed out that if the perpetrator of a farm machinery accident constitutes a crime, the operation permit will be revoked according to law; if the tractor driver escapes, it may not regain the driver's license for the rest of his life.

3. On July 27, 2011, the Ministry of Industry and Information Technology promulgated the "Conditions for the Access to Machines and Tractors". For the first time, the company's credit rating is included in the access conditions for the agricultural machinery industry. With clear conditions, production companies need to obtain a national industry credit rating above class A qualification.

4. The Ministry of Industry and Information Technology released the Agricultural Machinery Industry Development Policy on August 17, 2011. The "Policy" proposes to support eligible companies to raise funds through listing and issuing bonds, expand direct financing channels, and provide policy support for corporate mergers, acquisitions, and restructuring.

5. The Ministry of Agriculture issued the "12th Five-year Plan for the Development of National Agricultural Mechanization (2011-2015)" on September 6, 2011. For the first time, “Planning” has made significant progress in mechanized production of major economic crops and modern facility agriculture, and coordinated advancement of the mechanization of aquaculture, forestry, and primary agricultural products.

â– Enterprises:

1. On March 7, 2011, China Yituo Group acquired the McCormick plant of the Italian Argo Group. Yituo Group promises to expand the scale of production within the next five years and produce tractor hydraulic transmissions to supply the Chinese market.

2. On April 15th, 2011, at the 109th Canton Fair, China's first synchronizer-shifted tractor with independent intellectual property rights was officially unveiled. It was released to fill the gap in the domestic synchronizer tractor market, and Foton Lovol became The only domestic company that mass-produces and exports such tractors.

3. On April 26, 2011, Jiangsu Rongsheng Heavy Industry successfully acquired the entire equity interest of Quanchai Group for 2.149 billion yuan. This move will enable Rongsheng Heavy Industry's power plate to have high, medium and low-speed diesel engines, making the layout more perfect.

4. On April 27th, 2011, Shandong Dafeng Group and American Aike Group signed a joint venture and cooperation contract, and on September 7th, the establishment of Aike Dafeng Agricultural Machinery Co., Ltd. was announced. Aikedafeng will build a world-class brand and strive to form an annual production capacity of 50,000 units in 2015.

5. On August 16, 2011, the First Tractor announced that it had purchased 45 Chinese target trademarks from China with a consideration of RMB 5,951,000. This will enable the company to fully utilize the market influence and appeal of the target trademark to further expand the market and help the company develop its long-term business.

6. On September 6, 2011, China National Machinery Industry Group Co., Ltd. successfully restructured the Long Agricultural Machinery Equipment Group Co., Ltd. SINOMACH plans to build the long-haul group after restructuring into the largest agricultural machinery manufacturing enterprise in the northeast region within three years.