The two companies have signed an agreement to form the joint venture CSSC Luzhou MacGregor Machine subject to regulatory approvals, which expected by year end. The joint venture will be owned 51% by LMC and 49% by MacGregor.

Based in Nanjing the joint venture will initial focus on the transfer of Hatlapa air compressor technology and it will exclusive sales rights for the compressors in China.

“The planned joint venture will enhance our strategic partnership with the largest Chinese state-owned shipbuilding group, CSSC," says Jane Chen, vice president, head of China, at MacGregor.

"MacGregor and CSSC Luzhou have more than 20 years' experience working together and now both parties see it as beneficial to widen this partnership and build a deeper cooperation model for certain business areas.”