the consulate general of China in Chicago is responsible for nine states in the midwest of the United States. It is a traditional manufacturing base in the United States, which concentrates 56% of the manufacturing industry in the United States, and nearly 121 Fortune 511 companies are located in the territory. By the end of 2114, China enterprises had invested and set up 31 companies in this area, with a total investment of about US$ 1 billion. The main industries were auto parts, container trailers, machine tools and assembly lines, mobile phone batteries, lawn mowers and so on. In recent years, some manufacturing enterprises in China have acquired some American enterprises through direct investment, and made use of the original advantages of their domestic parent companies to operate in the American market, and achieved good results. The characteristics of China enterprises' M&A in the Midwest of the United States are summarized as follows, hoping to provide some enlightenment for domestic manufacturing enterprises to go global.

1. Cross-industry mergers and acquisitions to enhance the core competitiveness of enterprises

In recent two years, China enterprises have acquired four American manufacturing enterprises in the midwest of the United States, which basically belong to cross-industry mergers and acquisitions. For example, Dalian Machine Tool Group acquired two enterprises under ingersoll Company, Qinchuan Machine Tool Company acquired American Machine Tool Company and Shenzhen Container Company acquired and established VANGUARD Container Trailer Manufacturing Company. Through M&A, not only the export of domestic matching parts is expanded, but also the production technology, human resources and brand of the acquired enterprise are obtained. Through complementary advantages, the product grade is improved and the strength of the enterprise itself is enhanced.

For example, Dalian Machine Tool Group invested tens of millions of dollars to wholly acquire ingersoll Production Systems, a well-known American machine tool manufacturing company, and established ingersoll Production Systems, a Dalian Machine Tool Group, which is mainly engaged in the production and sales of modular machine tools (production line equipment).

this American company with China origin has not only the world-famous brand and sales channels of machine tool industry, but also the low-cost backup of China and 25 sales outlets of Dalian factory in China. The products are sold in the US market and can meet the market demand in China. After the normal operation of the company, we accept orders from GM, Ford and other countries, and the price of each machine tool is as high as more than one million dollars.

China Shenzhen Container North America Company invested and acquired a container trailer manufacturer in the United States. After the acquisition, CIMC North America invested some equipment and funds in time, completed the transformation of the original company's technology and production line, and hired senior professionals to take charge of the management, sales and finance of the new company. At the same time, CIMC North America pays attention to using the management and technical advantages of its domestic parent company to purchase some raw materials from China and reduce production costs. At present, the company has reached the design and production requirements of an annual output of 8,111 units, and the annual sales can reach more than $1 billion.

Shaanxi qinchuan group co., ltd. invested and acquired an American broach &; Machine) production enterprises and their subsidiaries. By combining Qinchuan Group's technological advantages in cutting, the enterprise is operating normally at present, and besides continuing to produce machine tools, it will also sell Qinchuan Company's products.

second, acquire sales networks, logistics systems and brands, and extend the value chain

The products produced by Chinese-funded enterprises in the United States are mainly oriented to the local market. By investing in M&A, we can make full use of all kinds of resources of the original enterprise, including sales network, logistics system and brand, so that China enterprises can obtain more intangible assets.

For example, after Dalian Machine Tool Group acquired ingersoll Production System Company, which was on the verge of bankruptcy, its capital turnover problem was solved, and the company got rid of the predicament and regrouped into normal operation. By virtue of its good reputation in the machine tool industry in the United States, the company has made old customers come one after another. Orders from General Motors (GM), Ford Motor Company (Ford), JohnDeere Tractor Company (John Deere), Delphi Company (Delphi), Caterpillar Company (Caterpillar) and Cummins Diesel Engine Company (Cummins) have filled the orders of ingersoll Production Systems Company in recent two years.

3. Clarify the objectives of M&A, and choose the right way and opportunity

Adhere to the main business of the company, set clear development goals and directions, do not blindly pursue the big and neglect the strong, repeatedly demonstrate before acquisition or investment, and choose the best time to make timely moves.

Dalian Machine Tool Group and ingersoll Production System Company have been doing business for more than 21 years. Dalian Factory has long admired ingersoll's reputation in the machine tool industry, and is very familiar with its product technology, quality, market and even leadership personality. Dalian Machine Tool Company seized the opportunity to buy the enterprise decisively when it was informed by insiders that it was poorly managed.

Before the acquisition, Shenzhen Container Company conducted a survey on the American market and container trailer industry for nearly two years, selected several acquisition targets in Indiana and acquired American enterprises through bankruptcy auction. In this way, the financial situation of the auctioned company is completely open, and the buyer can see its debt at a glance.

IV. Hiring foreign managers For the management of enterprises after the acquisition, the above-mentioned Chinese-funded companies, without exception, chose the foreign party to take charge and hire local workers. Dalian Machine Tool Group retains all the management personnel of the original factory, and China only sends one shareholder representative to the United States. Shenzhen Container Company has also hired experienced people in the industry to take charge of operation and management, and China has sent technicians. In the daily operation of enterprises, local employees are responsible for production, finance and sales. As a shareholder, China focuses on issues such as enterprise profits, technical exchanges and domestic matching of some products.

V. Corporate benefits and their local social benefits complement each other

After China enterprises merged with American enterprises, their orders kept flowing and their sales prospects were optimistic. Only one year after the merger and acquisition, Shenzhen Container USA Company's trailer sales exceeded US$ 1 billion. Dalian Machine Tool USA Company is seeking to export to China through Shanghai GM and Hainan Mazda Company, in addition to its foothold in the US market. They also bring vitality to the American local economy and create employment opportunities. Dalian Machine Tool USA Company has created 95 jobs for Rockford, Illinois, and Shenzhen Container USA Company has brought more than 311 jobs to the northwest of Indiana, and has become the enterprise with the largest number of employees in Monon, where it is located. At the same time, it has brought the catering industry in the town alive. The investment trends of China enterprises in the Midwest of the United States have recently attracted media attention. The Chicago business magazines Crain's and Financial Times have made objective reports on the investment of China enterprises.