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XCMG develops overseas presence

Chinese construction equipment manufacturer XCMG is in the process of developing its operations outside of its home market, in a bid to strengthen its international profile XCMG recently won a large export order of 80 machines to the Middle East, which will raise the profile of the brand in this market. The deal is significant for XCMG as it gives the company a stronger foothold and greater brand recognition in the Middle East, helping with its plans to develop exports. The machine order includes an a
April 29, 2015 Read time: 3 mins
XCMG truck
XCMG has developed innovative products for sale into both home and export markets
Chinese construction equipment manufacturer XCMG is in the process of developing its operations outside of its home market, in a bid to strengthen its international profile

2490 XCMG recently won a large export order of 80 machines to the Middle East, which will raise the profile of the brand in this market. The deal is significant for XCMG as it gives the company a stronger foothold and greater brand recognition in the Middle East, helping with its plans to develop exports.

The machine order includes an array of equipment for use in different road construction segments. These include XS3 soil compactors, XP3 pneumatic tyre compactors, D series graders, XAP asphalt plants, milling machines, 3 series asphalt pavers.

The firm says that competition in both domestic and overseas market has intensified. As a result, XCMG has been developing its operations in after-sales, repair and maintenance, spare parts, rental and secondhand machines.

The firm is developing its profile as a solution provider and management collaborator able to deliver full-range packages, management assistance, investment analysis, finance, products and services and special versions of equipment.
Since 2011, XCMG has made a substantial effort to develop its overseas parts supply systems, in partnership with its overseas dealerships. The coverage now includes an extensive supply network for parts, including around 100 dealer warehouses and 30 services and parts centres. These are in territories including North America, South America, Asia, Europe, North Africa, West Asia and Africa.

Backed up by service and parts centres are 10 training facilities in Ghana, Ethiopia, Guinea, Zimbabwe, Kenya, Angola, India, Mongolia, Venezuela and Peru. These are said to benefit dealerships and end users with overall training services. In Turkey, a service vehicle can now be on site within two hours wherever the project location. Meanwhile in Brazil and Russia, call centres have also been established for XCMG customers. In Brazil, XCMG says that its call centres handled a total of 488 calls for after-sales services in 2014.

The company recently opened Xugong (Cambodia) Engineering Mechanical at Phnom Penh, Cambodia. A batch of compaction rollers was handed over to the customers, while participants at the opening included the local government officials, mining and construction companies. They also included more than 100 Chinese representatives on behalf of Shanghai Construction Engineering, China Road & Bridge Corp., 5544 Sinohydro Group and 2661 China Communications Construction Group.

The new facility occupies an area of 2,500m2 and is located next to No 6 Highway, Phnom Penh, Cambodia. The warehouse houses construction machines, a parts centre and a showroom. The facility also has a number of service vehicles and support technicians.

XCMG is particularly keen to develop its presence in the Asia-Pacific region. This new company was set up after five months of preparation by XCMG’s import and export company. The operation is intended to develop XCMG’s Road Business Division and Loader Business Division, giving it a fully equipped wholesales and distribution base in the Asia-Pacific region.

The acceleration of its overseas service system has become a key portion of the XCMG globalisation strategy. In 2015, the firm intends to continue this programme and establish a multiple-layered network shaped by integrating regional parts centres, service and parts centres, dealership inventory warehouses and workshop storage into a whole to optimise customer support.

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