Responding to “Road and Belt” initiative, XCMG set up another KD factory abroad!
Responding to “Road and Belt” initiative, XCMG set up another KD factory abroad!
Release Date: 2019.12.18


Recently, XCMG has launched the project of constructing a heavy truck KD factory in Nigeria, which is expected to be completed and put into use in June 2020, with an annual output up to 4,000 units.

In order to further go abroad, XCMG has been seeking cooperation with strong companies with overseas management experience and foundation to establish KD factories while continuously enhancing exports.

In August 2019, XCMG signed a strategic cooperation agreement with China National Building Materials Group Co., Ltd. to further promote cooperation. At present, XCMG has reached a framework agreement with Sinoma International Engineering Co., Ltd. on a joint venture in Nigeria.

As China’s largest and the world's leading comprehensive building materials industry group, China National Building Materials Group Co., Ltd. has taken the lead in the global cement industry and ranked among the top 500 in the world for eight consecutive years.

The cooperation between XCMG and China National Building Materials Group Co., Ltd. can not only quickly guarantee the standard operation of KD factories, form a joint force to shape competitive advantages, but also effectively avoid the risks of overseas operation and achieve a win-win situation. It is also a model demonstration that Chinese enterprises follow the “Road and Belt” initiative and work together to go overseas.


Reach out to West Africa to cover key markets with “strategic forces”


Africa is one of the largest export markets for China's commercial vehicle industry, and Nigeria, as Africa's largest economy, is the economic engine of the western continent, with huge market, rich natural resources, stable political situation, and sound legal system, making it a “promised land” for investing in Africa. Since the current infrastructure in Nigeria is incomplete, leading to high logistics and transportation costs, the demand for commercial vehicles increases.

XCMG spreads the China strength across the world. XCMG took the lead in exploring the model of local assembly and established a KD factory in Nigeria, with a view to gradually radiating and covering other key regions.


Global thinking requires localized actions. XCMG, focusing on local characteristics, and based on the classic model design, developed series of products such as the “African Star” off-road dump trucks, road dump trucks, tractors, trucks and mixer trucks targeting the operating conditions in Africa. The series of products, characterized by “high cost performance” of mainstream models in Africa, have been widely recognized by customers for their reliability, fuel economy, and super bearing capacity. They have been sold in batches in 34 countries in sub-Saharan Africa.

After the completion of the KD factory in Nigeria, the marketing and after-sales services supporting the products will also follow up rapidly. It is expected that XCMG will more rapidly respond to the end markets and customer needs, and it will be closer to users and ultimately increase customer satisfaction.


Carry forward the China brand with “XCMG golden standard” along the “Road and Belt”


At present, XCMG products have been sold to 183 countries and regions, and 5 overseas R & D centers, 15 overseas manufacturing bases, and KD factories have been established globally. The products have been exported to 63 countries and regions along the “Belt and Road”, with the exports accounting for 70% of the total export value of XCMG. Currently, XCMG products have had the largest export share in 30 countries along the “Belt and Road” and more than 50% in Kazakhstan, Uzbekistan, Philippines, Pakistan and other countries.

Construction of the 2022 World Cup stadium

12 courts in 7 cities in Qatar

XCMG 660 complete sets of equipment participate in the construction of the new town and the World Cup stadium in Lusail, Qatar

Mombasa-Nairobi Railway in Kenya

This 480-km railway is designed and constructed with the primary standard of China Railway

XCMG 198 units of equipment participated in the construction of railway project

XCMG exports more than 20 categories of products and nearly a thousand sets of equipment for the DANGOTE refinery project in Nigeria.

XCMG equipment, with its steel giant arm, plays an important role in the construction of the main stadium of Qatar 2022 World Cup, Mombasa-Nairobi Railway in Kenya with a total length of 480 kilometers, Africa’s largest DANGOTE petroleum refinery project, 5000-km Southeast Asia corridor of Pan-Asian railway, highways, railways, ports, power facilities and other projects on China-Pakistan Economic Corridor, and the Philippines oil refinery along the “Belt and Road” and in the world.

Africa returned to its highlight moments in the face of challenges and risks. XCMG will be more deeply involved in the construction of Africa’s infrastructure and logistics, and spare no effort to reach out to the construction equipment markets along the “Belt and Road” and across the world, thus accelerating the strategic goal of increasing the proportion of overseas revenue to 50%, and shaping up to be a world-class group.

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