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Machine tool manufacturer sells 30% stake

(Xinhua)
Updated: 2007-06-10 09:38

Guan Xiyou, general manager of the Shenyang company, said the company expected a 2007 revenue of 10 billion yuan (1.3 billion U.S. dollars) and would hopefully rank third in the world by 2010.

"We will cooperate with the Shenyang company, provide capital and managerial experiences to realize its strategic goal," said Fox.

Ranking seventh among machine tool manufacturers worldwide, the Shenyang Machine Tool Group boasts 8.66 billion yuan (1.1 billion U.S. dollars) in assets, and two of its companies are listed on the domestic stock market.

The sale of stakes in large state-owned enterprises to overseas investors, sparked debate among both industry insiders and the general public in China, who fear too much foreign influence in  key firms could threaten the country's economic security.

A capital market expert said on condition of anonymity that the prescribed limit of foreign ownership will keep the Shenyang company safe from foreign dominance while allowing the state-owned business transform.