China Eximbank provides a loan to Northern Heavy Industries Group to facilitate its acquisition of a 61% ownership stake in The Robbins Company

Project narrative

In 2016, the Export-Import Bank of China issued a loan to Northern Heavy Industries Group Co., Ltd. (NHI) — a wholly Chinese state-owned multinational heavy machinery manufacturing company based in Shenyang — to facilitate its acquisition of a 61% ownership stake in The Robbins Company. The Robbins Company is an United States-based tunnel boring machine (TBM) specialist headquartered in Solon, Ohio that develops hard rock and soft ground TBMs used for highway, railroad, hydroelectric and utility tunnels (the Chunnel used Robbins' TBMs) and designs and manufacturers continuously extending conveyors for use behind TBMs. At the time of the acquisition, Robbins owned the world's most advanced hard rock TBM technology and held around 7% of the global market share. The acquisition was worth $150 million USD (RMB 1 billion), and was part of an intended three-phase merger process: NHI taking an initial minority interest, then NHI taking a 61% stake, and then a merger of Robbins Company into NHI. The acquisition was expected to make NHI the world’s second largest TBM producer and help it become a world-class research and development base of full-face TBMs, allowing China’s advanced equipment manufacturing industry to become more competitive internationally. The acquisition was also expected to lead to synergy in development, sales, and cost control and provide market share and competitiveness, as well as improve Shenyang's high-end manufacturing industry and the development of its pipeline and subway projects. For Robbins, the acquisition was expected to improve its position in the global TBM market and open up opportunities in China. Under the acquisition, Robbins president Lok Home remained as a shareholder and was expected to assume leadership of a combined Robbins/NHI tunnel boring equipment business. Robbins Company operations were to remain the same. The acquisition agreement was finalized and the acquisition of the minority interest was completed on June 28, 2016, with the 61% stake to be finalized in July 2016. The acquisition of the 61% stake was completed. NHI developed financial difficulties following the acquisition of Robbins. In October 2019, Robbins was placed into receivership at the behest of president Lok Home to improve the company's liquidity, corporate governance, and financial affairs and NHI lost control of the company.