Construction machinery companies accelerate their overseas expansion

  Recently, the China Construction Machinery Industry Association released data showing that in the first half of the year, the cumulative export of the twelve major categories of products included in the association's statistics was 371,700 units, a year-on-year increase of 12.3%. Among the twelve major categories of products, ten categories achieved positive export growth, among which the paver increased by 89.5%.
Industry experts said that in recent years, my country's construction machinery companies have seized the development opportunities of overseas markets, increased foreign investment, and actively explored overseas markets, from "going out" to "going in" to "going up", constantly innovating international development models, and improving the global industrial layout. Internationalization has become a weapon for construction machinery companies to "cross the industry cycle".

The proportion of overseas revenue has risen
  Overseas markets have become the "second growth curve" of construction machinery companies. According to data, in the first half of this year, Liugong achieved overseas revenue of 7.712 billion yuan, a year-on-year increase of 18.82%, accounting for 48.02% of total revenue, an increase of 4.85 percentage points year-on-year. According to their chairman, in the first half of the year, Liugong achieved revenue growth in both mature and emerging markets, with emerging markets growing by more than 25%, and all regions achieved profitability; the growth rates of the African and South Asian markets led the overseas regions, with revenue shares increasing by 9.4 percentage points and 3 percentage points respectively, and the overall regional structure of business became more balanced.

  Not only Liugong, in the first half of the year, Sany Heavy Industry's overseas revenue accounted for 62.23% of its main business revenue; Zoomlion's overseas revenue accounted for 49.1% of its main business revenue; XCMG's overseas revenue accounted for 44% of its total revenue, an increase of 3.37 percentage points year-on-year. At the same time, benefiting from factors such as the rapid growth of overseas sales, price increases for some products, and improved product structure, the gross profit margin of overseas business of leading engineering machinery companies continued to increase and profitability increased. XCMG said that the overseas market has huge space and low cyclical volatility. The increase in the proportion of overseas revenue is expected to further drive its operating performance and profitability, thereby steadily crossing the industry cycle.

Accelerating the new model of going overseas
In the first half of the year, my country's engineering machinery exports reached US$25.837 billion, a year-on-year increase of 3.38%. From product exports to building factories overseas to realize localized production, and then to improving product technology and entering overseas high-end markets, my country's engineering machinery companies have gradually explored a new overseas model from "going out" to "going in" and then to "going up".

With the in-depth implementation of the "going in" strategy, my country's engineering machinery companies pay more attention to the deep integration with overseas local markets. By setting up production bases, R&D centers and service agencies overseas, localized operations are deepened.

A relevant person in charge of Sany Heavy Industry said that in the first half of the year, the company's second phase factory in India and South Africa factory were under orderly construction. After production, they can fully cover Southeast Asia, the Middle East and other regions, which will further provide strong guarantees for the company's globalization strategy.

At the same time, Sany Heavy Industry has established R&D centers overseas to better develop overseas markets. "We have established global R&D centers in the United States, India and Europe, using local talents to carry out product research and development and better serve global customers." The above-mentioned person in charge of Sany Heavy Industry said.

Moving towards high-end
In addition to deepening the localization development of overseas markets, my country's engineering machinery companies are taking advantage of leading technological advantages such as electrification to enter overseas high-end markets.

Sany Heavy Industry has also achieved outstanding performance in overseas high-end markets. In the first half of the year, Sany Heavy Industry released a 200-ton mining excavator and successfully achieved overseas sales, setting a record for the tonnage of excavator sales overseas; Sany Heavy Industry's SY215E medium-sized electric excavator, with its excellent performance and energy consumption control, successfully broke through the European high-end market.

Industry insiders said that at present, Chinese engineering machinery companies have a great advantage in emerging markets, and in the future they should consider more about how to expand the European, North American and Japanese markets, which are large in scale, high in value and have good profit prospects. Relying on traditional technologies to expand these markets faces great challenges, so we must rely on a combination of pure electric engineering machinery, unmanned operations, and big data, the Internet of Things and other technologies to enhance our competitiveness. In addition, engineering machinery companies are constantly adjusting their product structure, the proportion of large-scale high-end products is constantly increasing, and the market development prospects are good.