Shanghai Yiqian Trading Co., a logistics and construction firm, is buying Germany’s Hahn airport, the latest in a series of overseas infrastructure deals by Chinese firms.
The Chinese firm is acquiring 82.5 percent stake in the loss-making airport that is located 120 kilometers away from Frankfurt, Reuters reported.
The stake will be bought from federal state owners for a sum pegged at low double-digit million euro.
Hahn, a former military base, has struggled to turn a profit but the new owners said on Monday that they wanted to change that by boosting passenger and freight links with Asia.
Yu Tao Chou, chairman of Yiqian Trading, was quoted as saying that increased air freight links from Germany will help to meet the growing demand in China for Western products such as meat.
“When it comes to freight, we expect good business from the transportation of food products to Asia,” he said.
Unlike Frankfurt, Germany’s largest airport, Hahn has a 24-hour permit, making it useful for freight flights.
The current majority owner, the federal state of Rhineland-Palatinate, will provide around 70 million euros in subsidies for the airport over the next decade.
Yiqian Trading also plans to buy the remaining 17.5 percent stake held by the state of Hesse, according to the report.
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