Biesse has reinforced its presence in China by signing a contract to acquire 100% of the Centre Gain Group of Hong Kong for HKD105m (€9.6m).

The acquisition, through its subsidiary Biesse HK Ltd, will be paid for in cash in several tranches over the next 36 months.

“Through this transaction, and with the synergies expected from collaboration with its existing subsidiary in Shanghai, the Biesse Group intends to reinforce its presence in a region that is extremely important and significant both in terms of existing potential and medium term opportunities,Biesse said in a statement.

“China currently represents the world’s leading market for wood processing machinery and, given that there is no technological overlap, the current industrial output of the acquired company will broaden Biesse’s range of equipment.

The Centre Gain Group has been active since 2004 in the production and marketing of woodworking machinery through a production facility located in Dongguan city, Guangdong province, (Korex Machinery Ltd). Korex has about 360 employees and current production capacity is running at about 60%.