Dieffenbacher has bought out panel manufacturer Kronospan’s stake in the Chinese equipment firm Shanghai Wood-Based Panel Machinery Co Ltd (SWPM) in a move to extend its business in China and other international markets.

Kronospan bought 70% of SWPM five years ago to grow its own Asian wood panel operations in the belief machinery produced in China would find extensive markets, especially in Asia. Although primarily a panel manufacturer, Kronospan also has machinery operations in the Czech Republic and Slovakia.

Kronospan has not commented on the sale and financial details have not been disclosed as both are privately-owned companies.

The machinery giant said the deal would strengthen its position in the Chinese market, where Dieffenbacher already has a sales and service company in Beijing and small workshop and manufacturing facilities in Changzhou. SWPM has also made inroads into international markets and the recent development of a 4ft-wide continuous press has expanded its product range.

Dieffenbacher said production in both regions was complementary and no negative effects were expected for employees in Germany.

Sources said it was likely the manufacture of the 4ft press for sale in China, South Asia, the Middle East and South America would continue while the larger machines would be made in Germany.