(Yicai Global) July 2 -- Chinese motor producer Wolong Electric Group has paid USD160 million for General Electric's small industrial motors business, state-run Xinhua News Agency reported.

The acquisition is a milestone in Wolong Electric's global plans and will help the company fortify its core business, expand its sales network, and increase international technological cooperation, according to Chairman Chen Jiancheng. The cash deal, signed on June 29, was completed the next day.

Zhejiang province-based Wolong acquired all of GE Industrial Motors Mexico and GE Motor Services, as well as the assets and employees of another 13 entities linked to the business, which makes low-voltage and enclosed fan-cooled medium voltage motors of less than 1,750 horsepower.

Wolong also signed a 10-year brand rights use agreement with Boston-based GE, Chen said. Wolong Electric Small Industrial Motor's new sales center will be in Houston, in the southern US state of Texas.

Editor: Ben Armour