Shanghai Zhenhua Port Machinery Co (600320.SH) president Guan Tongxiang said the company’s output would reach US$4.28 billion (RMB30 billion) this year if it can acquire smaller rival Shanghai Port Machine Plant (SPMP), China Business News reported. Zhenhua is hoping to buy SPMP and a 60% stake in Jiantian Hotel from China Communications Construction Co (1800.HK) in exchange for shares.  The deal requires regulatory approval. SPMP has annual capacity to make 150 large port machines, second only to Zhenhua, but it posted just US$14.28 million (RMB100 million) in net profit last year. An analyst with Lianhe Securities raised the concern that the acquisition would hold back Zhenhua’s profitability, but Guan said Zhenhua had mapped out a plan to consolidate SPMP’s premium-quality assets and would make good use of its human resources. “The acquisition will boost Zhenhua’s efficiency and help us develop new businesses,” he said, adding the purchase could increase Zhenhua’s output by between US$428.25 million and US$499.63 million (RMB3 to RMB3.5 billion).