SMT Scharf AG receives first order via Chinese Joint Venture
In January this year, SMT Scharf received its license from the Chinese authorities to form the joint venture Shandong Xinsha Monorail Co. Ltd. This company, which is located in Shandong province, started operations in June 2010. The joint venture received its initial order from a Chinese industrial holding company, which already uses SMT Scharf's monorail hanging railways in several of its coal mines. SMT Scharf will supply two construction sets from Germany which will then be completed in China. "We are very pleased that our joint venture has already been able to acquire its first order, just briefly after commencing its operations," commented Dr. Friedrich Trautwein, SMT Scharf AG's CEO. "This confirms our approach of working together with a local partner in order to offer our customers in this region close sales support and service on location."
In addition, a new Chinese customer ordered three monorail hanging railway trains from SMT Scharf. These will also be used in coal mines. Both orders will be delivered and invoiced in 2010.
About SMT Scharf AG
The SMT Scharf group develops, builds and maintains transportation equipment for mining and tunneling. The main product are railbound railways which are used all over the world, primarily in hard coal mines and underground mining for gold, platinum and other metals. They are used to transport material and personnel with working loads of up to 45 tons. Railbound railways are the only means of underground transport that can be used on branching lines to cope with inclines of more than 13 degrees. The SMT Scharf Group has its own companies in Germany, Poland, Great Britain, South Africa, China and Russia and additional dealerships. The railways that SMT Scharf develops are characterized in particular by their highperformance engines, great transport performance and low operating and maintenance costs. SMT Scharf records more than 80% of its revenue in highgrowth foreign markets, such as Russia, China and South Africa. Business with replacement parts and repairs accounts for around 40% of revenue. The entire market for underground transport technology comprises € 5 billion to € 7 billion per year according to the company's estimates. SMT Scharf AG has been listed in the Prime Standard (Regulated Market) of the Frankfurt Stock Exchange since April 11, 2007.