The Worldwide Deployment of Zoomlion Supports the Nation in Constructing "One Belt And One Road"

The implementation of a "One Belt And One Road" strategy will usher in aperiod of rapid development among infrastructure-related industries in the overseas market. As the nation's industry leader in theproduction of construction machinery, Zoomlion has long been preparing to compete against international giants in the coming years.

Advertisement

Therecently concluded Bauma China 2014 expo provided a glimpse of Zoomlion'sinternational ambitions. At the show, the senior director in charge of Zoomlion overseas business, Zhang Jianguo, openly stated that Zoomlion was ready for overseas expansion in its role as an upstream infrastructure equipment supplier.

Flagship Products Shine in International Standards thanks to Resource Integration

For Bauma China2014, Zoomlion brought its concrete machinery, cranes, earthmoving machinery,road machinery, infrastructure construction machinery, and industrial vehicles,displaying as many as 27 flagship products in six main categories to accuratelyreflect Zoomlion's global leadership in the area of technological capability.

Zhang Jianguo stated that through extended acquisitions, Zoomlion acquired CIFA, M-TEC, and RAXTAR, successfully bought out the full range of flat head tower crane technology from JOST, a sophisticated German specialist in tower cranes, and quickly acquired a sizable share of the world's top technology and most experienced R&D personnel. Meanwhile, the establishmentof R&D bases in Europe and the Americas, combined with the mutual integration of domestic and foreign R&D personnel, allowed the company to quickly achieve world-class status in technological research and development with the manufacture and integration of a wide range of innovative,industry-leading products.

This exhibition's"dry-mixed mortar + mechanical sand" dual integration system solutionepitomized Zoomlion's international standards.

The solutionentailed the combination of two different products, MTA3000 dry mortar andZSL60F mechanical sand. MTA3000 was the first new product that Zoomlionlaunched after merging with Germany's M-tec, the world's leading dry mortarbrand. It perfectly combines the M-tec mixer, measuring systems and mechanicalsieving technology, which greatly improve mixing efficiency, adaptability ofraw materials, measurement accuracy, and filtering efficiency, while reducingthe residue rate to ensure effective sealing and increase service life. Theresult is that Zoomlion is now poised to become the undisputed dominant playerin this segment of the industry.

Furthermore,Zoomlion put on an outstanding performance in front of a worldwide audience forthe TOP product show of this year's Bauma exhibition. Three 56 meter carbonfiber boom pumps, two dual integrated system solutions, the world's largestT-3000 flat-top tower, the world's first recycled water swept vehicles, as wellas 20 additional new industry-leading products were all unveiled in turn,exposing Zoomlion's technological prowess to the eyes of the world.

Overseas Distribution Targeting the Global Market

In fact, it was not only about this edition of Bauma. The Conexpo in the United States and the CTT exhibition in Russia were also a chance for Zoomlion to achieve global market recognition for its outstandingly advanced and reliable products.

Held in March of 2014, the Conexpo was an opportunity for Zoomlion to win the audience'sattention by exhibiting its high-quality products. Even before the show wasover, Zoomlion had signed a contract worth $20 million to furnish a dealer withcrane equipment, thereby highlighting the depth of confidence and capability that Zoomlion has to cultivate in overseas markets with outstanding quality.

In recent years,China's domestic construction machinery industry has been challenged by the effects of rising domestic production, slowing infrastructure construction, and other factors. At the same time, the construction machinery industry has hadenormous overseas prospects. North America, Southeast Asia, Africa, and SouthAmerica all have broad markets.

It is known thatdemand in the global construction machinery market grew in 2014 mainly because of investment growth in Russia, India, Vietnam, Thailand, Brazil, and other emerging market economies, as well as investment growth in the infrastructure of the African market.

In this context, Zoomlion gradually took the lead among its competitors in the market, thanks to the perfect layout of its overseas bases and telecommunications network, strong technological innovation capabilities, and strong brand influence.

It is reported that Zoomlion currently possesses distribution pointsin more than 80 countries worldwide. Having divided the world into seven large global regions, Zoomlion has established trade, financing, service and spare parts supply, logistics, banking, and other integrated service platforms in allthe major areas of each region. These integrated platforms have been set up toprovide better customer service.

Strong Endorsement with Global Resource Support

The essential motive behind these actions by Zoomlion is to optimize the allocation of global resources.

Given the circumstances of global economic integration, there are indications that the era of "global resource integration" has already arrived. Zoomlion chairman Zhan Chunxin has publicly stated that the internationalization of abusiness is not only about selling products overseas and building factories overseas, it is also about integrating the global industrial ecosystem and allocating resources on a global scale.

Based on this understanding, Zoomlion has acquired the Italian company CIFA, the German company M-TEC, the Dutch company Raxtar and other world-class businesses, aswell as conducting a full buyout of German JOST technology. Through technological synergies, Zoomlion has independently developed the T8030-25Utower crane, the ZLJ5253GJBH5 heavy truck chassis, and the LNG mixer, includinga series of environmentally friendly smart products to achieve seamless alignment with international standards.

Sustained integration of global resources enables Zoomlion to continue strengthening its own organization as it grows to become the carrier fleet of the entire construction machinery industry. It is also a means for the sixth largest construction machinery company worldwide to lay a solid foundation for becominga "world-class enterprise".

In this respect, Zhang Jianguo has stated that "the global construction machinery industryis accelerating the consolidation of changes. Zoomlion is currently furtheringthe concept of development and reinventing the development model while activelyseeking new levels of improvement and expanding globalization. It continues topromote technological innovation, system innovation, and business modelinnovation. We shall always adhere to our core values of 'integrity,perseverance, tolerance, and accountability', creating products that are more secure, environmentally friendly, reliable, and more in line with the actualneeds of global customers, in hopes that the equipment manufacturing industrymight have even more to contribute. "

Zhang Jianguo also pointed out that "after nearly a decade ofgetting oriented, settling down, and breaking itself in while promoting theimplementation of a domestic 'One Belt And One Road' strategy, Zoomlion'soverseas market expansion will usher in a period of rapid development. Domesticrevenue within the next 3-5 years will attain 30-40%, as compared with thecurrent ratio of 10%. The company is ready to compete with the industry'sinternational giants, now and in the coming years."