Sany Group targets developed economies to expand presence

Heavy industry manufacturer has business in over 150 countries and regions

With excellent overseas performance amid challenges brought by the COVID-19 pandemic, Sany Group, China's leading heavy industry manufacturer, is placing more focus on developed countries to expand its overseas presence.

The conglomerate now has business in over 150 countries and regions, and maintains the leading market share in nearly 30 countries and regions.

"In the first half, thanks to the gradual recovery of the global economy and the improvement of our brand recognition, as well as our product and service competitiveness, our overseas sales revenue surpassed 10 billion yuan ($1.54 billion), up over 100 percent year-on-year," said Xiang Wenbo, president of Sany Group.

"The market shares of our major products further increased, and our overseas business has reached a new level," Xiang said.

Currently, Sany Group has four production bases overseas. They are located in India, the United States, Germany and Brazil.

From January to June, Sany achieved 100 percent sales revenue growth in 50 countries and regions, including France, Russia, India, Indonesia and Vietnam.

Specifically, the sales revenue of Sany India surged 109 percent on a yearly basis, and the products manufactured in India were sold to Africa and the Middle East. The sales revenue of Sany America was 72 percent higher than that of the same period a year earlier. Sany America was among the fastest-growing manufacturers of basic machines in North America.

"Meanwhile, the sales revenue of Sany Europe increased by over 40 percent on a yearly basis, among which the sales revenue of excavators grew by 99 percent. We achieved great progress in localization and product adaptation," Xiang said.

The company said that in the past, it placed business emphasis on developing countries and regions, including the economies of Africa, Southeast Asia and South America. As it has achieved great success in these markets, it plans to shift its emphasis to developed countries, such as the US, Australia, Canada and nations in Europe.

The production base in the US was built in 2007 with an investment of $60 million. The sales revenue of the US production base grew steadily every year, demonstrating the advantage of localized development.

The production base in Germany was built in 2009 with an investment of 100 million euros ($117 million). It owns a complete industrial chain including a research and development center and a manufacturing base. The production base is among the fastest-growing overseas.

"Through the overseas production bases, Sany Group will further enlarge its overseas investment and increase the proportion of overseas sales to total sales. Specifically, developed countries will be our next targets," Xiang said. "We hope that our brand will be more internationally recognized and accepted."

Data from the company showed that in the first half, Sany Group sold over 10,000 units of excavators, up 145 percent year-on-year. The overseas market share of its excavators increased 2.2 percentage points compared to last year, and that of crawler cranes and wide-body vehicles grew 23.7 percentage points and 10.4 percentage points, respectively.

Currently, the sales volume of Sany's excavators and concrete machinery is tops in the world, and exports of piling machinery, large-tonnage hoisting machinery and port machinery are also taking the lead globally.

Speaking of the reason for Sany Group's success overseas, Xiang said the company made innovations this year to enrich channels and support domestic agents to go overseas. By the end of June, Sany Group established localized distribution systems in more than 100 countries and regions. It has more than 300 high-quality overseas agents, ranking tops in the industry.

"The comprehensive distribution system gives us new vigor and vitality. Through over 10 years of efforts, our brand influence and the level of our marketing services have been greatly improved," Xiang said.

He added that the company has gained a competitive edge with its products. On July 31, Sany Group launched 45 new products－22 mixer trucks, eight vehicle pumps and 15 pump trucks－all conforming to China VI-b emission standards. The products meet the standards three years ahead of the time that the country required.

Apart from being environmentally friendly, the products' performance was also upgraded. There were over 120 technology optimizations, and the integration of Chinese and German technologies has greatly improved the performance of the products.

In terms of fuel consumption, through optimized power matching, improved pump efficiency and reduced pumping resistance, the new products' fuel consumption can be cut by up to 5 percent.

A report by German newspaper Die Welt said China's machinery and equipment exports reached 165 billion euros last year, taking up 15.8 percent of the world's total. China had, for the first time, taken over Germany to become the champion of machinery and equipment exports.

"Currently, China is taking the lead in contagion prevention and control, as well as economic recovery. The recovery of its production capacity raised its market share of mechanical equipment exports and helped many major economies eliminate the impact of the COVID-19 outbreak," said Song Qinghui, an independent economist.

"In the future, Chinese manufacturers should strengthen technological innovation and blaze a new path of high-quality development to export more quality mechanical equipment made in China to the outside world and build Chinese brand awareness," Song said.

Qi Haishen, president of THE Solar Tech Co Ltd who is also an expert in construction, said, "Chinese mechanical equipment manufacturers should grasp the opportunity and focus on digital transformation, retaining their core competencies against the backdrop of smart manufacturing transformation."