7 September 2016, 15:10
When the Chinese won medals one after another at the Rio Summer Olympic Games, behind the medals, XCMG, being the largest construction equipment supplier for the Olympic venues, has provided with more than 2000 sets of large-scale mechanical equipment and ensured a smooth operation of the equipment. Having won Medals behind Medals with its Made in China equipment, XCMG has exuded the confidence shared by the Chinese equipment manufacturing industry to the world in Rio.
Of all the construction machinery used in the Olympic venues in Rio, XCMG takes the lead in providing the largest quantity, accounting for more than half of total equipment used, with cranes and concrete mixers accounting for eighty percent of the total,” proudly said Sheng Min, Head of the XCMG’s International Development Department, when reflecting on XCMG’s contribution to the Rio Olympic Games. XCMG’s equipment has staged a marvelous Golden Samba at the construction sites in Rio.
It is said that over XCMG’s 1000 earth work engineering equipment have been deployed in the construction of the Olympic venues, among which more than 300 road rollers deployed at the construction of the ancillary facilities of the venues, over 500 cranes used for construction hoisting purpose and over 200 aerial platform trucks used for hoisting construction of indoor decorations. A total of 2000 XCMG- brand construction machinery has been involved in the Olympic venue construction.
“The XCMG’s base in Brazil has played a decisive role in all this,” stated Sheng Min. According to regulations by the Brazilian government, all enterprises participating in bidding for government projects are required to have local production capacity in Brazil, i.e. to have an enterprise production base in Brazil. The XCMG’s base in Brazil, covering an area of 800,000 sq. meters, is capable of manufacturing five categories of over 60 types of equipment. XCMG has successfully accomplished its objective in the Olympic Games with an international vision and strategies of global layout that have been adopted in recent years.
Under the guidance of the State Policy of Going out, XCMG has sped up its implementation of international development strategy by actively participating in global production capacity and moving forward with its overseas layout. Additionally, XCMG has achieved systematically a global layout through sales and marketing, building factories, cross-border mergers and acquisitions and joint ventures, and layout of R&D bases.
Last year, XCMG acquired some large overseas orders including an order in Nigeria, hailed as No. 1 order of Chinese construction engineering machinery exporting to Africa. Moreover, its export business of some emerging products including excavators, tower cranes and concrete mixers has increased on average by forty percent. XCMG has realized a total amount of USD $ 0.61 billion in self-run export and USD $0.73 billion in exporting XCMG-brand main engines last year, hitting a record high.
Up to now, XCMG boasts approximately 300 overseas agents, 40 subsidiaries and representative offices, 34 spare parts service centers, about 500 service providers and 4 large regional training centers. Noted for its well-established sales and service system, it provides 176 countries and regions with complete-process product services.
Serving as an epitome of XCMG’s initiatives of expanding global manufacturers’ layout, the construction work of the Olympic venues in Rio is undertaken with XCMG’s engineering machineries manufactured in Brazil. To further make best of its global resources, reduce production cost, and achieve a speedy response to regional markets, XCMG has continued to expand its self-funded overseas production layout by setting up factories in green space with, collaboratively building jointly-funded factories with local government or distributors.
XCMG has accomplished strategic expansion in the markets in BRICS countries by resorting to building factories in green space and setting up a comprehensive production base. XCMG production-base-in -Brazil project was launched in Oct. 2010 and the XCMG Manufacturing Company was established and put into operation on June 6, 2014.
In addition, in collaboration with distributors who have strong local presence or with local governments XCMG builds factories in emerging markets and developed markets, for instance, KD assembly plants have been set up in Poland, Uzbekistan, Kazakhstan and Iran. The KD assembly plant built in 2014 in Uzbekistan achieved annual sales of 192 units in all product categories with sales revenue totaling USD $21.3 million last year. Moreover, the plant’s radiation ability in central Asia has been fortified, becoming a star project in XCMG’s strategic “the Belt and the Road” initiatives and in international production capacity cooperation.
Overseas mergers and acquisitions and international research and development are the key components of XCMG’s international strategic development, ensuring the Company’s leadership in scientific and technological development. In recent years, XCMG successively acquired two hydraulic valve and system development companies including FT Company in Germany and AMCA in Netherlands, and it successfully acquired Schwing, a world-famous German concrete equipment manufacturer. Additionally, XCMG strives to foster collaboration and integration between overseas enterprises and Chinese enterprises, optimizes resources while improving the operation of the enterprises that were acquired following completion of mergers and acquisitions.
XCMG’s overseas accomplishments are further seen as follows: XCMG Europe (Germany) R & D center was built with an investment of 36 million euros in 2012; XCMG Engineering Technology Center in Brazil was established in 2013; XCMG R&D Center in the United States was incorporated and local R&D projects were launched in 2014. In short, XCMG’s strategic layout of global technology research and development has sped up its integration of international technological resources and bringing together talents at home and abroad, achieving product upgrading and promoting brand image. A "King Kong from a Super Power" has truly emerged with international flair.