Chinese construction machine manufacturers bullish as market recovers

Chinese manufacturers are increasing sales of construction machines both in their home market and also for export. This is the claim from Wang Guiqing, vice president of China Chamber of Commerce for Import and Export of Machinery and Electronic Products (8758 CCCME). Wang said that demand for machines in China has increased as market conditions have improved, while the impact of the Belt and Road strategy for developing infrastructure is a massive benefit for export sales. As many projects are now commencing, he said: “Chinese manufacturers are ready to supply machines built to a high quality and that are technologically advanced.”

This important rise in profile for Chinese construction machinery firms has come through steady investment in technology. Qi Jun, president of Chinese Construction Machinery Association (CCMA), said: “Over the last ten years we have had particularly fast development.” He said that a focus on research and development has been crucial, with overseas sales now accounting for over 25% of turnover for Chinese firms, with the Belt and Road programme being of particular significance.

Gao Yuanyuan is minister counsellor at the Chinese Embassy in France and commented: “It is very clear that the global market has recovered from the global slowdown.” She added that some markets show particular growth and said: “Europe will provide good opportunities for Chinese companies.”

Yang Dongsheng, general manager for XCMG, explained: “We have been spurred by the rebound in the European market.” He said that the firm’s sales in China are now very healthy indeed as the home market has recovered well, and this has boosted the firm’s global profile: “We’re now the sixth company in the world for construction equipment.”

David Cipolla, CEO of Zoomlion CIFA, explained that in the 10 years since Italian concrete pumping specialist CIFA was bought by Zoomlion, it has been able to expand production, as well as invest in technology. This has allowed the firm to introduce the only lightweight concrete pump booms on the market made from lightweight carbon fibre for example, as well as sophisticated hybrid technology for its concrete mixers.

Howard Dale, chairman of LiuGong Europe, said: “With the acquisition of Dressta in 2012, we became one of the first Chinese companies to invest in Europe.” LiuGong has continued to invest in its Polish plant, boosting production as well as developing a new research and technology centre.