Deloitte Legal supported XCMG with the establishment of a leasing company and the BaFin licensing process

A cross-functional Deloitte team led by Hannes Bracht and Moritz Maier successfully supports one of the world's largest construction machinery manufacturers, Xuzhou Construction Machinery Group (XCMG), in establishing its first group-owned financing company in Germany.

The newly established XCMG European Financial Leasing GmbH (XCMG Finance) received its license from BaFin in early December 2025 to conduct leasing and factoring business. Customers of XCMG Finance can now take advantage of customized financing options for all types of XCMG construction machinery.

Deloitte Legal and Deloitte provided XCMG with comprehensive support ranging from the planning phase, through the corporate implementation and the development of the business model, to the BaFin licensing process. In addition to legal advice, this included in particular, the design of a business model specifically tailored for finance leasing in Germany, the preparation of financial planning, and the setup and documentation of organizational and governance structures in accordance with regulatory requirements. Furthermore, the tax implications and the tax setup of the newly established company were thoroughly reviewed. XCMG was able to draw on Deloitte’s extensive expertise and cross-functional project experience. Under the leadership of the Deloitte Legal FSI team led by Hannes Bracht and Moritz Maier, the establishment project was supported and managed comprehensively across all relevant legal and regulatory aspects.

Hannes Bracht, Lead Partner at Deloitte Legal, explains: “Start-up projects and BaFin licensing procedures for financial services institutions always pose unique challenges. However, the keys to success remain the same: high-quality work, particularly in preparing the BaFin application documents; transparent and reliable communication with BaFin and all other stakeholders, and efficient management of the entire establishment process, including the timeline. We are pleased to have successfully supported XCMG in this important project.”

The establishment of the group’s first in-house financing company in Germany and the receipt of the license from BaFin are of great strategic importance to XCMG. For the first time, the construction equipment manufacturer will be able to provide financial services to its customers independently. In addition to traditional and customized financing and leasing offers, the company also plans to operate a factoring business.

“We expect our own BaFin license to give us greater flexibility in designing our financing products. This will benefit both our customers and our dealer network and provide strong commercial support for XCMG in the German and European markets,” explains Thomas Pirlich, Managing Director of XCMG Finance.

Rudolf Wesseln, also Managing Director at XCMG Finance, adds: “It was a great help to us to have Deloitte Legal and the FSI team led by Hannes Bracht and Moritz Maier as reliable partners by our side throughout the entire process of establishing the company, and especially during the BaFin licensing procedure. In my professional experience, every BaFin licensing process - especially for foreign-owned group companies - typically raises one or more complex regulatory questions that can only be successfully navigated with the help of an experienced advisor. We thank Deloitte Legal for their support.”

Legal Advisors to XCMG

Deloitte Legal: Dr. Hannes Bracht (Lead, Banking & Finance, Frankfurt a.M.), Dr. Moritz Maier (Co-Lead, Banking & Finance, Berlin), Alexander Fischer, Xinyi Wang (both Corporate/M&A, Frankfurt a.M.), Nauar Kaumi, Pelin Sentürk, Maia Preißler (all Banking & Finance, Düsseldorf)

Deloitte: Dirk Sonnenschein (Deloitte Tax, Berlin), Thomas Peek (Deloitte SR&T, Frankfurt a.M.), Benedikt Middendorf (Deloitte SR&T, Hannover)

About XCMG
Founded in 1943, XCMG is a multinational corporation that offers the most comprehensive range of competitive and influential products in the construction machinery industry. XCMG’s products span 17 categories, more than 100 applications, and over 1,000 specifications, making the company the provider with the most complete product range and the most comprehensive turnkey solutions in the global construction machinery sector.

XCMG has maintained its position as the number one player in the Chinese construction machinery industry for 35 consecutive years and ranks fourth globally. With more than 23,000 employees, XCMG operates in 192 countries and regions and maintains several production facilities outside of China. Its extensive product range in Europe includes earthmoving, road construction, lifting, mining, and concrete machinery, as well as aerial work platforms, forklifts, and port machinery. XCMG Europe is headquartered in Krefeld, Germany.