China’s massive coal industry dwarfs Australia’s, providing plenty of expansion opportunities for Valley Longwall’s products and services to a larger underground coal sector.

“The coal industry in China is increasingly seeking to work with suppliers and partners with high safety standards and access to quality technology – both of which are core to VLI's business,” Valley Longwall chief executive officer Brett Lynch said.

“The signing of this agreement marks a very exciting time for our company and will create tremendous opportunities for all VLI employees.”

The Valley Longwall brand will be retained by China’s TMG.

Investment firm Catalyst put Valley Longwall up for sale last year and Australian original equipment manufacturer Industrea was involved in the bidding process.

But TMG clinched a deal to fully acquire Valley Longwall just a few days before Christmas.

The sum was not disclosed and Catalyst, which bought Valley Longwall for almost $A250 million in 2007, did not put out its own public announcement on the transaction with the Chinese manufacturer.

Last year, Valley Longwall consolidated its business into three divisions, 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.

Valley Longwall 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.