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XCMG steps up overseas presence
By Zheng Lifei (China Daily)
Updated: 2008-11-27 10:41
Xuzhou Construction Machinery Group (XCMG), China's biggest construction machinery maker, expects its overseas sales to grow 25 percent next year to $1 billion despite the global financial crisis, its chairman said yesterday.
The group is also considering establishing plants in Poland and Iran, company chairman Wang Min told China Daily at the Bauma China 2008 construction machinery fair. The group is on track to record $800 million overseas sales this year, up over 40 percent from last year, said Wang, adding that the firm hopes to get 30-40 percent of its revenue from overseas over the next few years. The company wants to take advantage of the on-going financial turbulence to buy assets in Europe and United States. "We are interested in buying distribution companies but not manufacturing facilities," said Wang. XCMG is talking with foreign partners about an engine and component joint-venture business, he said, declining to identify the companies involved. XCMG's overseas revenues come mainly from the Middle East, Central Asia and Eastern Europe, but South American markets such as Argentina and Brazil are emerging. The group's revenue will top 40 billion yuan this year, up from last year's 30.8 billion yuan, and will hit 50 billion next year thanks to a strong infrastructure market, Wang said. XCMG is one of a growing number of Chinese machinery makers increasingly competing with global heavyweights such as Caterpillar. However, it has not made any major overseas acquisition so far. Zoomlion, another leading Chinese heavy machinery maker, paid 163 million euros for a 60 percent stake in the Italian machinery company Compagnia Italiana Forme Acciaio SpA (Cifa) earlier this year. Sany Heavy Industry Co said it would build a $100 million plant in US, the first Chinese machinery maker to do so in North America. (For more biz stories, please visit Industries)
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