Atlas Copco yesterday opened two joint ventures with Chinese drilling equipment maker Hongwuhuan Group to produce and sell drilling rigs in China, the Swedish industrial company said.
One of the joint ventures is based in Quzhou, Zhejiang Province, and will develop and produce surface drilling rigs and rock drilling tools. The other one, based in Shanghai, will focus on sales.
The companies expect to achieve 200 million yuan ( million) in sales this year.
The promising outlook is attracting foreign manufacturers which, however, "need to resort to local production to reduce cost amid fierce domestic competition," said Freddy Man, general manager for mining in China of Atlas Copco.