China deal signed
A MEMORANDUM of understanding was signed between Gympie manufacturers J. Smith and Sons and Chinese mega-corporation the North Heavy Industries Group on Friday night.
The deal was struck after two full days of negotiations in Gympie and Brisbane and will be formalised with a final agreement to be signed in Inner Mongolia next month.
It has the potential to make millions of dollars through the engineering design arm of J. Smith and Sons, Smith Global.
Managing director Kerren Smith said he had signed a five-year contract with NIHC, with the option to extend the contract for another five years if both parties agreed.
The first unit by NIHC, a 60-tonne side tipper trailer to be used in China's coal mining industry, is expected to be built in China by December.
Mr Smith said the potential also existed for the Gympie-based company to use NIHC to build mining products for J. Smith and Sons to be sold elsewhere in the world (not in Australia).
NIHC chairman Jaiping Lei said he had discovered J. Smith and Sons through its website and had been impressed with the company's history and reputation.
