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Chinese Construction Machinery On the International Market |
| Date Added: August 28, 2009 03:16:12 AM |
| Author: William Blair |
| Category: Shopping And Services |
| The Chinese construction equipment includes a great selection of specialized machinery. Along with excavators, loaders and building cranes, there is also railroad building equipment, different-purpose trucks, hoists, pneumatic equipment and other types of building machinery. The capacity of the Chinese building equipment sector in the year of 2008 (including the sales of pneumatic equipment and other stationary building machinery) has been estimated at $38,6 billion. Last year the Chinese building equipment market soared by 30%. Still, despite the huge rise, some analysts do not find the Chinese market a profitable sector to make investments in because of the low cost of the building equipment manufactured Chinese eneterprises. The cost of the Chinese building equipment is less than 50 - 150 % of the price for imported machinery, which appeals to many Chinese buyers. Chinese building equipment and foreign capital Nowadays overseas companies choose to cooperate closely with Chinese manufacturers. The majority of the leading producers of construction machinery brought their own brands to China. Atrewards they started to cooperate with their Chinese partners. This strategical scheme helps foreign companies have a closer look at the Chinese construction machinery sector and ensure the sales of their production but under a different trade mark. As a result, foreign producers have reduced the cost of their production and at the same time have remained competitive on the market. Small Chinese companies that failed to cooperate with foreign business counterparts became unable to compete with big companies for new clients. The close cooperation between Chinese producers and their overseas counterparts has turned out highly profitable for both parties. For example, two large companies Zoomlion and SANY earned about $2, 86 billion last year. More than that, Zoomlion has bought the European manufacturer CIFA and, therefore, has turned into the world's number 1 manufacturer and supplier of concrete mixers. In the recent time the export of the Chinese machinery has dropped, largely because of the decline in the demand for building machinery on the largest markets of the USA, the EU and Russia. Manufacturers of front end loaders and forklift loaders have suffered greatly. The thing is the majority of highly developed states have suspended some big building projects because of the economic fall, which has led to the decrease in the demand. A large number of preventative measures have been taken in Russia to shield Russian producers from the influx of the Chinese production. Hence, during the coming years Chinese companies will be producing construction machinery mostly for the home market, at least till the global economic nosedive comes to an end. The Chinese government has granted a $570-billion aid to the sector. Yet, the money is not enough for all manufacturing enterprises and they look forward to cooperation with foreign producers. |
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