Engineering Machinery Demand Increases and XCMG Seizes "the Belt and Road" Market

Applied in Djakarta-Bandung highway in Indonesia, Piraeus in Greece, Padma Bridge in Bangladesh, and Public Security Emergency Command Center in Ecuador, Chinese construction machinery technologies, equipment, and standards win more and more attentions and good reputations in the international market.

On September 21st, 2017, "the Belt and Road" infrastructure construction planning exchange jointly organized by the electromechanical chamber of commerce and the secretariat of Maritime Silk Road International Fair was held in Conference C, Guangdong Modern International Exhibition Center. Government officials from more than 10 countries including Philippines, Garner, Cuba, and Ethiopia participated in the exchange. 

In the meeting, as a Chinese enterprise representative, XCMG introduced its participated "the Belt and Road" construction planning and results to participants. Zhai Kun - Deputy General Manager of XCMG Import & Export Co., Ltd made a presentation of "Chinese Engineering Machinery Enterprises Are Sailing on the Belt and Road" and XCMG drew the attention of the entire audience with its impressive data. Along "the Belt and Road" line, XCMG established 116 first-grade distribution outlets, 73 spare part outlets, 24 offices, 11 manufacture bases and KD factories. XCMG products rank the first in 23 countries along "the Belt and Road" line in the export market share, win a good reputation of the first brand in Central Asia, Africa, and the Middle East, and provide complete sets of equipment solutions for infrastructure and engineering construction.

Seizing the opportunity of global economic recovery, XCMG brand grabs overseas market share.

Since the global financial crisis in 2008, the global economic downturn has affected all industries. However, the Baltic Dry Index (BDI, authoritative index measuring international maritime transportation and a leading index reflecting international trade released by the Baltic Exchange) increases gradually, international trade rebounds, and the global economy recovers slowly from the end of 2016. Prices of bulk commodities, such as iron ore, rise. From January to August in 2017, the export value of main engines in Chinese construction machinery industry achieved year-on-year growth of 33.21%.

With the steady progress of "the Belt and Road" strategy, a world longest and most potential economic corridor is gradually formed and will introduce new vitality into world economy development. 65 countries, 4.4 billion people, and USD 21 trillion are involved in "the Belt and Road" strategy. In "Economic Corridor", infrastructure construction is preferentially developed and the investment volume for infrastructure construction in the Asia Pacific region will reach USD 8.2 trillion by 2020 according to an estimation of Asian Development Bank.

Being preferentially developed on "the Belt and Road" line and widely concerned by countries along the line, infrastructure construction helps Chinese engineering machinery enterprises win new opportunities in the global market and be on the upgrade in railways, ports, bridges, infrastructure and safety engineering construction, and other areas.

As a leading enterprise in the Chinese mechanical engineering industry, XCMG seizes double opportunities of economic recovery and "the Belt and Road" and actively participates in infrastructure construction of countries along "the Belt and Road" line. 2017 semiannual report of XCMG (listed part) shows that XCMG achieved year-on-year growth of 77.44% on operation revenue and realized year-on-year growth of 333.27% on net profit of proprietors attributable to the parent company. The economy grows mainly due to the guide of three traditional main engines and the simulation of the strong overseas market. XCMG has established a wide and complete marketing network around the world, forming strong competitiveness. Benefiting from the "the Belt and Road" strategy, XCMG achieved year-on-year growth of 84.83% on the export value from January to August in 2017. XCMG increased 4 percentage points in the export market share and become the first choice in the market. XCMG has become a famous business card of "Made in China" in countries along "the Belt and Road" line.

With technology innovation and internationalization paralleled, XCMG stepped into top 10 engineering machinery manufacturers around the world.

Originated from Eighth Arsenal in Southern Shandong - an arsenal under the command of General Xu Shiyou, XCMG grows into a large multinational group with a value of 100 billion. Experienced years of baptism and flames of war, XCMG ranks the first in the Chinese engineering machinery industry and becomes the only Chinese enterprise that enters world top-ten engineering machinery manufactures, and now it has become a complete equipment solution provider with the longest product line and complete range of articles.

XCMG carried the flag of leading the development of the Chinese industrial machinery industry.

"During the past, we did not feel comfortable when being seized by the throat and therefore we must make a breakthrough in hollowing out and intellectualization - two world themes." In the view of XCMG president - Wang Min, the scale of Chinese machinery equipment can be basically forecasted and industry value can be greatly improved. Therefore, Chinese enterprises can go into the international market or even achieve success in domains of multinational corporations. "We need to step into the middle- and high-level product fields, and improve technology content, quality, and added value. This will generate new growth points."

In recent years, XCMG focuses on technical standards and technological innovation, fulfills the golden standard of "Leading Technology, Everlasting Products" put forward by Chairman Wang Min, jumps out of the low-level, homogenized, and extensive development and completion situation, gradually wins attentions and space in fields of "Three High and One Large" (high-end, high technical content, high additional value, large tonnage), and successfully develops a series of products representing Chinese or even world's best technologies. These products include a 4000-tonnage crawler crane, a 2000-tonnage all terrain crane, a 400-tonnage mining excavator and truck, and a 100 meter-level fire engine - highest in Asia.

Complete sets of XCMG large-scale mining equipment obtains an export order with a value of 200 million.

In addition, XCMG firmly follows supporting strategies of technological innovation and internationalization, makes breakthroughs in innovations in high-end products and key components and parts of hydraulic pressure, transmission, intelligent control, and running systems, speeds up the layout of Internet of Things, Industrial Cloud, and intelligent manufacturing, and fully goes to the international market, starting a new high-end, international, and world-class development era.

At present, XCMG has a variety of products with the strongest nature of complete sets in the global construction machinery industry and covers 8 major fields and 50 industries. XCMG has more than 1000 models of machines in 70 major lines and 14 main gates in the construction machinery field and XCMG products are sold all over 178 countries and regions. With more than 200 thousand sets of equipment overseas, XCMG ranks the first in crane truck and large-tonnage road roller sales in the world, and 12 types of main engines rank the first in Chinese export brands.

In addition, XCMG increased investment in international research and development (R&D) and established a global R&D system in bases China, the United States, Germany, Brazil, and India. Grasping the technical R&D strength of global high, refined, and cutting-edge engineering machinery and equipment, XCMG completed the acquisition and integration of SCHWING Group in Germany, Germany FT, and AMCA in Netherlands.

XCMG outlets are distributed along "the Belt and Road" line and XCMG brand is recognized around the world.

In the international arena, XCMG has shown its advantages. Responding to the call of "Going global", XCMG has developed the international development strategy for many years, realized a triple jump of going global from products, personnel, to capitals, and established an overseas development mode of "Four in One" (export trade, overseas plant establishment, cross-border M&A, and global R&D)."An enterprise going global must be guided by market demands and effective local demands are foundations for an enterprise to take root." Vice president of XCMG Sun Jianzhong said, "XCMG adheres to the principle of production and sales localization and insists in localization fusion during the construction of "the Belt and Road", and provides readily marketable products for countries along "the Belt and Road" line, giving full play to localization advantages of dealers. In the future, XCMG will further improve the network layout, plans to add 10 first-level dealers in Russia, Belarus, Central Asian, and African countries and southeast coastal regions, realizing full coverage of the XCMG brand along "the Belt and Road" line and providing complete sets of equipment construction solutions for "the Belt and Road" infrastructure and engineering construction.

Hundreds of XCMG equipment participates in a Philippines refinery project.

660 pieces of equipment participates in main stadium project for Qatar 2022 World Cup. 

93 pieces of excavators participate in Uzbekistan projects.

XCMG crawler cranes and rotary drilling rigs participate in the construction of Ankara-Istanbul highway in Turkey.

XCMG heading machines participate in the construction of north-south freeway in Montenegro.

During the construction of "the Belt and Road", XCMG increases investment, and participates in and guides the construction of many major projects based on the development of countries along the line, improving interconnection abilities of countries along the line and promoting economic transformation and upgrading of related countries. Plenty of golden XCMG equipment participates in the construction of transportation and energy projects for China–Pakistan Economic Corridor, Qatar World Cup stadiums, World Expo main stadiums in Astana, Kazakhstan, north-south freeway in Montenegro, Ankara-Istanbul highway in Turkey, a cross-sea bridge in Maldives, Kazakhstan light rails, Uzbekistan agricultural irrigation, and Philippines refinery facilities.

The proposal of "the Belt and Road" reaches an intensive and meticulous farming stage and indicates new directions for Chinese manufacturing transformation and a scientific and technological support has become a new engine to promote sustainable development of Chinese manufacturing. "As a leader in Chinese construction machinery industry," Liu Jiansen - President Assistant of XCMG and General Manager of XCMG Import & Export Co., Ltd says, "XCMG will insist in an international development route of leading innovation and moving towards middle-level and high-level fields with a confidence of ranking among world first-class enterprises, highlighting Chinese enterprises shifting and upgrading. XCMG is actively implementing automation and informative industry upgrading, exploring technologies and system solutions of Internet of things and related fields, excavating Internet new power, and seizing "the Belt and Road" opportunities for top-point development.