CHINESE construction equipment maker Sany Heavy Industry Co(stock code: 600031) will sign a memorandum of understanding with the US state of Georgia today to build a plant there, company officials said yesterday.

The plant, for which details like investment size weren't disclosed yesterday, will assemble equipment for the US market.

"We still have things that are not finalized yet for the project," said Zhang Li, a media relation person with Hunan Province-based Sany Group, the parent of Sany Heavy. She refused to elaborate.

A report by China Securities Journal yesterday claimed the investment will be US$100 million, which Zhang said was "inaccurate." The MOU will be signed in the United States today local time, when there will be an official announcement.

Shares of Sany Heavy fell 5.8 percent to close at 47.57 yuan (US$6) on the Shanghai Stock Exchange yesterday. The stock has gained more than 40 percent so far this year.

Sany Heavy, China's biggest maker of pumps for concrete and also makes mobile cranes and road equipment, has more than doubled its overseas sales in the first half from a year ago at 512 million yuan, according to its interim report.

The project, which needs final regulatory nod from the Chinese authorities, will make Sany the first Chinese construction equipment maker to set up a US plant.

It will be its second plant outside China after its India production facility.