Doosan expects larger market share
Excavators at Doosan's Yantai plant are ready to be delivered to the users. |
The company, with a history of more than 100 years in the Republic of Korea, has seen robust performance since Doosan Infracore (China) Co Ltd was founded 10 years ago in Shandong Province.
So far, Doosan Infracore (China) has sold more than 35,000 excavators in the domestic and overseas markets to become the largest excavator manufacturer in China.
Last year alone, the company produced 8,354 excavators, of which 7,582 were sold in the Chinese market. This year, the company expects to sell 10,000 excavators, according to Sung Chui-choe, president of Doosan Infracore (China) Co Ltd.
"Doosan's sales revenue has continued to top the Chinese market for six consecutive years. So China will become our second 'home market' in the near future," said Sung.
He noted that the company will accelerate technological innovation to diversify its products in the years ahead, aiming to capture a bigger share of the Chinese market.
According to Sung, the company will invest more capital in the Chinese market in the next three to five years, especially in view of the Doosan Infracore (China) Investment Co Ltd being established last year.
The newly founded company will mainly deal with Doosan's business and investment affairs in China, including production, distribution, sales and design.
"Besides excavators, we will invest more in developing other construction machines, such as forklifts, engines and loaders," Sung said in a recent interview with China Daily.
Doosan has three plants in Yantai at present, with an annual production of 10,000 excavators and sales revenue of more than 6 billion yuan.
"We will expand the production capacity for excavators in the near future. At the same time, we will soon be engaged in other products, to build a sound comprehensive construction equipment production system," Sung said.
The company's expansion plan is based on the increasing national demand for construction equipment products, he explained.
"As China has seen robust economic development over the past years, especially in the infrastructure sector, it has also seen rising demand in construction equipment," Sung said.
China is currently the world's fourth largest market for excavators, with an annual growth rate of 40 percent in recent years.
So far, a number of world-renowned construction equipment makers, including Hyundai from the Republic of Korea, Japan's Komatsu and Hitachi, US-based Caterpillar and Sweden-based Volvo have set up production bases in the country, triggering severe competition in the excavator market.
"Good service and improved technology have helped us capture a lion's share of the Chinese market," Sung said.
According to him, Doosan has established a sound sales and after-sales service network in the nation's major cities, including Shenyang, Xi'an, Shanghai, Guangzhou, Wuhan and Urumqi, providing 24-hour service for customers.
(China Daily 03/13/2007 page17)
