Investment firm Catalyst put VLI up for sale last year and Industrea was involved in the bidding process.

But a subsidiary of Taiyuan Heavy Machinery Group Coal Machine (TMG) clinched a deal to fully acquire VLI just a few days before Christmas.

The sum was not disclosed and Catalyst, which bought VLI for almost $250 million in 2007 before VLI’s planned initial public offering, did not put out its own public announcement on the transaction with the Chinese manufacturer.

Industrea and VLI’s drilling business have previously collaborated in targeting gas drainage markets.

But Industrea has started manufacturing its own drill rig assembly to combine with its established drilling guidance and gas drainage systems to form an integrated product offering.

Another subsidiary, Industrea Gas Management, has been set up to target the underground gas drainage services markets in Australia, China and Russia.

Industrea is also advancing the development of a Chinese-made PJB personnel carrier designed for the country’s vast underground coal mining market.

The equipment maker, supplier and mining services provider increased its adjusted net profit after tax by 11% year-on-year to $19.64 million for the last six months of 2010.

Attributable net profit to shareholders fell 47.5% year-on-year to $17.55 million, though this comparison includes the impact of a $20.2 million one-off tax adjustment gained in the last half of 2009, which was associated with the acquisition of Baralaba mine operator Huddy’s Mining Services.

“Our strategy in China is gaining real traction and the outlook for continued improvement is positive,” Industrea managing director and chief executive Robin Levison said.

“Chinese customers will have new capital budgets allocated after the conclusion of the Chinese New Year, which is expected to result in increased orders in March through to November.”

Meanwhile, TMG’s acquisition of VLI is expected to increase its own growth in China, and the Valley Longwall brand will be retained.

Last year, VLI consolidated its business into three divisions of drilling, diesel and conveyors.

Products from the diesel division include the Driftrunner underground personnel transporter, the Brumby utility vehicle and the Jug-A-O utility loader.

VLI also manufactures specialised in-seam directional drilling systems and stocks a wide range of hydraulic and mechanical spares and consumables.

The company is also a major manufacturer, maintainer and distributor of conveyor products and components.