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Re: Reinsman post# 59575

Wednesday, 09/28/2011 8:55:50 AM

Wednesday, September 28, 2011 8:55:50 AM

Post# of 98508
Great Post Yak a must read,

Here is my bet, and why I will keep buying at these prices:

1.) In a recent PR Tytan claimed to be an emerging leader in production of agricultural machinery and in acquisition of agricultural machinery manufacturers and patents.

2.) YTO recently visited Tytan to further their mutually beneficial relationship

3. YTO recently acquired McCormick France - it is uncertain EXACTLY what their angle is with this purchase, but they claim to have a desire to do 7.1 Billion in business in that region by 2015.

4.) Sinomach has made it known that this 5 year plan is dedicated to worldwide expansion. It is likely that this plan would include the USA. McCormick was purchased to give YTO a foothold in Europe and make exporting easier - in addition to the high tech gears/transmissions plant.

5.) Our CEO has a 20 year relationship with these guys at YTO and has been seen on the TYTAN website sitting with Gary Lynch, Tim Nelson, and a bunch of Chinese Gov't officials having dinner

6.) China has already given Mark the Exclusive rights to distribute the Benye design across the USA/Canada.

7.) Tytan has a connection for sales in Australia as well, so this distributorship may not be limited - likely is not limited to North America.


Couple these points and read this article.......


Quote:

BEIJING - China National Machinery Industry Corp (Sinomach), the biggest machinery manufacturer in China, has acquired the agricultural machinery-parts maker, McCormick France SAS. The deal - worth 8 million euros ($11.19 million) - was made through a Sinomach subsidiary, as the company aims to strengthen its dominant position in the domestic high-end tractor market.

The deal may also provide an important inroad into the profitable European market, as Sinomach will manufacture tractors under its "Dongfang Hong" brand in France, according to an announcement posted on the website of the State-owned Assets Supervision and Administration Commission.

Those tractors will be distributed directly to the European market, which will bypass some trade barriers, according to the announcement.

YTO Group Corporation, Sinomach's agricultural machinery subsidiary, conducted the acquisition.



The deal means that YTO will be able to upgrade its tractor-making technology and gain a larger share of the Chinese high-end tractor market, the announcement said.

Ren Hongbin, Sinomach's chairman, said management team issues are a major concern when Chinese companies make global mergers and acquisitions.

"A successful deal is a joyful thing, but between the joy and the pressure from the challenge, I feel the latter most," Ren told China Daily.

"When a manufacturing company such as YTO operates overseas, various challenges emerge, including language, management and how to work well with local labor unions. However, since we made the first step, we should continue," Ren said.

Sinomach, which is the parent company of several major manufacturers of agricultural machinery in China, plans to realize annual sales of 50 billion yuan ($7.1 billion) in the sector by the end of the 12th Five-Year Plan (2011-2015) period.

In addition to the Henan-based YTO Group Corporation, Sinomach also owns companies and institutions such as Luoyang Zhongshou Machinery Equipment Co Ltd and the Chinese Academy of Agricultural Mechanization Sciences.

China Daily



FURTHERMORE

7.) Some / Potential dealers have been discussed previously on this site. Locations in Rigby Id, Montana, Colorado, and New Mexico.

8.) A recent PR was released saying that Tytan has a deal with the Port of Kalama. This deal gives them the ability to bring in fully assembled tractors (huge competitive advantage) directly to Kalama.

9.) It has been discussed at length that the ease of shipping from this port is incredible and it is less than a mile from the tytan facility (just on the other side of I-5) Shipping can occur by rail line or truck once in Kalama.

10.) Look at the locations of dealers/suspected dealers. look at a railroad map of the USA. Think about it .... GEEZ



Our most recent PRs have been described as fluff ... I beg to differ. I will not be told what to think by many who only desire to take my money. I will not be scared... I know what I have.


Some are thinking of 2 or 3 dealers here or there, small growth plans and such, my guess is that Mark is thinking MUCH BIGGER



GO TYTN