Shandong Special: Latest XCMG heavy machinery premiere in Munich

Xuzhou Construction Machinery Group, China's largest manufacturer in the sector by revenue, will showcase its latest products in Munich at the famed Bauma expo.

Eleven of the group's products - including loaders, crane trucks, excavators, road rollers and drilling machines - will be presented to the global industry on April 15.

"The expo will be a good chance to promote our products and gain us wider access to the European market," Wang Min, chairman of XCMG told China Daily.

Last year, the group reported revenues of some 100 billion yuan ($16.1 billion).

Nine of its products have the largest share of their respective markets in China.

The sales volumes of its mobile crane and large-tonnage roller ranks first globally.

Wang Yansong, president of XCMG Import and Export Co Ltd, a subsidiary of the group, says the brand's products are now exported to 158 countries and regions and it has more than 100 overseas agents offering high-level after-sales services.

Despite the global economic slowdown, its overseas sales were valued at $1.36 billion last year, the most in the sector in China.

"By further promoting technological innovation and internationalization, we will strive to join the world's top-three heavy machinery makers in three years," says Wang.

By 2015, the group projects annual revenue will hit 300 billion yuan. Overseas sales will account for 25 percent of the total, Wang says.

To meet the goal, the group has initiated a series of international mergers and acquisitions in recent years.

Last April, it bought a 52 percent controlling stake in Schwing Group, the second-largest concrete pump manufacturer in Germany.

It was the third acquisition by XCMG in Europe following its purchase of Fluitronics Co in Germany and Amca Hydraulic Controls Co from the Netherlands in 2011.

The two companies make hydraulic parts and key components for construction machinery.

"The deals will help XCMG get its hands on the technological know-how, branding and a larger distribution network," says Wang, adding that M&A activities are expected to drive its annual income to more than $1 billion overseas.

(China Daily 04/12/2013 page25)