Days ago, Juli Heavy Industry Co., Ltd. (Juli) received about RMB200M from Wuxi New & Hi-tech Venture Capital (WNHVC), Ningbo Donly Transmission Equipment, and anther local investment firm. The three investors will hold a 13% stake of Juli. This is another traditional enterprise securing VC investment in Wuxi New Area. Prior to this, Juli encountered serious capital embarrassment. 

Fengliang Wang, Board Chairman of Juli disclosed that the company plans to launch its IPO in 2009.

Many VCs are hesitant to invest in the steel sector in the contexts of the hike price of iron ores and excessive capacity of steels, especially the data and policies released by the National Development and Reform Commission (NDRC). Stability of this sector is the most attractive to VCs. WNHVC said Juli will develop steadily in the mature industry even if it cannot go public next year.

WNHVC will not liquidate in the near future because of its sound system, bringing in abundance space for Juli to develop itself. The investment return can be harvested by means of re-purchase and dividend sharing.