Wuxi Fangzhan Machinery Manufacturing Co. Ltd. (China) is being acquired by Hunan Sunward Intelligent Machinery Co. Ltd. (China; [website]), a relatively rare move in the country's highly fragmented manufacturing industry.

Hunan Sunward will pay approximately 38 million yuan (USD $5 million), over five times trailing sales, to parent Fangzhan International Group Co. Ltd.

Founded in 2002, Wuxi Fangzhan manufactures bearings, power transmission and other mechanical subsystems for automotive OEMs in Asia. For 2006, the company reported sales of 7.1 million yuan ($945,000), and a net loss of 285,000 yuan ($38,000).