Fullshare Holdings' high-end manufacturing business segment has potential for overseas business as construction machinery goes "abroad"
Aug 19, 2021
3 minute read
(19 August 2021, Nan Jing) Recently, with the sound of a thick and high-pitched whistle, a huge Chinese ship carrying nearly 1,000 sets of XCMG excavators, loaders, graders and other construction machinery products set sail from the port of Lianyungang, Jiangsu Province for South America. This is the biggest single batch of export orders in China’s construction machinery industry in the past five years, marking the rise of Chinese manufacturing in overseas market.
Lv Ying, deputy secretary-general of China Construction Machinery Industry Association, told reporters that since this year, overseas exports of construction machinery have continued to exceed expectations, and in the future, under the layout of gradually optimized sales and financing channels, leading domestic construction machinery enterprises are expected to enter the harvest period in overseas markets.
Huang Dong, head of the international business department of Sany Logistics, said that in June, more than 3,000 pieces of equipment have been delivered, “We’re fully occupied”. In the first half of this year, Sany Group’s international sales revenue increased by a whopping 80% year-on-year, with sales revenue in most major markets increasing. In 50 countries and regions we can see an increase of more than 100%, including developed countries such as France and Russia, as well as developing countries such as India, Indonesia and Vietnam, with high quality development. XCMG, which is also the leading construction machinery manufacturer, also had a very bright export performance. “In the first half of the year, XCMG’s exports improved by more than 70% year-on-year.” Lu Chuan, CEO and Deputy Secretary of the Party Committee of XCMG Construction Machinery Co., Ltd, introduced that at present, XCMG products have been exported to 187 countries and regions around the world, covering 97% of countries along the “Belt and Road”, of which the export share in 30 countries ranks first. According to customs data, the export value of China’s construction machinery from January to June 2021 was US$15.071 billion, an increase of 54.9% year-on-year, while the export value in June was US$3.156 billion, an increase of 94.8% year-on-year.
From the perspective of quantity, all categories of construction machinery products are growing. From the enterprise level, the export growth of both domestic and foreign enterprises is fast, with large enterprises such as Sany and XCMG growing significantly and small supporting parts enterprises also growing.
For the reason of the overall growth, Lv Ying analyzed that it is the convergence of a variety of factors to form a high point of exports beyond expectations. On the one hand, the global construction machinery industry chain is relatively long, but the pandemic has cut the normal supply chain, and China’s industrial chain is more well-developed, marketing and service system the enterprise in overseas is also more and more perfect and effective. On the other hand, by the post-pandemic economic recovery in international market and other factors, the demand in construction machinery surges. Coupled with steel, coal and other commodities price increases driven by mining, further boosting the demand for construction machinery. In addition, the relief policy for the pandemic period is also helpful to enterprises.
As a product solution provider for well-known domestic construction machinery companies such as XCMG, Sany and Zoomlion, Fullshare Holdings’ high-end manufacturing business segment - NGC - will also benefit from the overseas market prosperity and have a wider business scope. NGC has been committed to promoting the domestication of core gear components for domestic mechanical engineering companies, allowing them to have an edge in the international market. “NGC is one of the leading enterprises in the mechanical general parts industry, it is the representative of China’s machinery industry in the world, and is the pride of China’s machinery industry.” The relevant person in charge of China Machinery Industry Federation has commented on the comprehensive strength of NGC. NGC also actively responded to the “the Belt and Road” initiative and established the Asia Pacific regional headquarters in 2014. With advanced technology, reliable quality and considerate service, it has continued to develop the market in Indonesia, and established close cooperation with customers such as Heidelberg Indonesia and the Indonesia National Power Plant. (Consolidated reports from the Economic Daily and others)