Construction machinery enterprises will set off a

2022-10-15
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Construction machinery enterprises will set off a wave of overseas mergers and acquisitions under the new normal

construction machinery enterprises will set off a wave of overseas mergers and acquisitions under the new normal

China Construction machinery information

the West tigers won the 2014 Australian Football League (NRL) championship. However, few people know that Liugong group has sponsored this champion team since it entered Australia in 2004

on December 26, Zeng Guangan, chairman of Liugong group, gave a speech at Tsinghua University, introducing that Liugong group sold its first machinery to Morocco in 2003, and its overseas sales reached 3.7 billion by 2013, accounting for 30% of the total sales

Zeng Guangan said that the domestic demand for construction machinery in 2014 decreased by 40% - 50% compared with the peak period in 2011. Under this "new normal", Liugong group will actively expand overseas business and realize global layout. He introduced that the globalization path of Liugong group is "International Marketing - International Manufacturing - international mergers and acquisitions"

like Liugong group, Zoomlion's international business accounts for 20% at present. Zhan Chunxin also said on many occasions that it needs to further internationalize and allocate resources globally. It is an indisputable fact that in the past three years, China's construction machinery industry has bid farewell to the golden development period of the past decade and entered an L-shaped bottom consolidation period, subject to factors such as the slowdown of the overall domestic economic market and overcapacity

Li Hongbao, Secretary General of the excavator branch of China Construction Machinery Association, said that in addition to the fine foam, "at present, the production capacity of China's excavator industry has exceeded 400000 units/year, while the global annual demand for excavators is less than 400000 units. Although many construction machinery manufacturers have planned to stop production and reduce production, there are still a large number of products overstocked in warehouses."

in 2010, Liugong group set an overseas sales target of 10billion yuan, and soon acquired Poland HSW company. Zoomlion also proposed the concept of "new international road". In the first half of 2014, m-TEC of Germany and raxtar construction elevator technology of the Netherlands were acquired, overseas production bases were established in Brazil, India and other places, sales and service platforms were established in nearly 80 countries, and branches were established in more than 40 countries

these analysis methods mainly control the two major differences between new plastics and recycled plastics (changes in body materials and foreign pollutants). According to statistics, in the first half of 2014, China exported construction machinery to 200 countries or regions, of which the top 25 countries accounted for 65.2% of the total export of construction machinery. After surpassing Japan in 2012, China's construction machinery export has become the third largest exporter in the world after the United States and Germany

but the problem comes. It is obviously not an easy task to develop its position in the overseas market. Its fire supply surface should be 242 flat metal plate plastic masterbatches drilled with a diameter of 1.32mm. It will certainly encounter many difficulties. Zeng Guang'an said that Liugong group will take the road of independent innovation brand overseas, rather than a simple manufacturer role, and overseas companies will be localized. Sponsoring the Western tigers is one of the measures

In addition, more and more countries have introduced a series of measures to restrict imports in order to cultivate and support their own manufacturing industries. In July 2014, Sergei zib, Deputy Minister of industry and trade of Russia, announced that Russia plans to reduce the import dependence of equipment and machinery production from 90% to 50% - 60% by 2020; The Vietnamese government and enterprises also want to speed up technological innovation to gradually get rid of the dependence on imported machinery from China

but there is also good news. It is understood that China has announced the establishment of the Silk Road Fund with an investment of US $40billion to provide investment and financing support platforms for infrastructure, resource development, industrial cooperation, financial cooperation and other projects related to connectivity in countries along the the Belt and Road strategy. As an industry with a strong correlation with the scale of capital investment, construction machinery is bound to be further developed

the pulling effect of national policies began to appear. Some experts predicted that the construction machinery industry would not experience ups and downs, and the sales revenue of the whole industry was expected to increase by 7% in 2015

"driven by the implementation of the national 'the Belt and Road' strategy, Zoomlion's overseas market expansion is about to usher in a period of rapid development, and its revenue share will increase to% in the next few years. The company is ready to compete with international giants in the industry in its home market in the next few years." Zhang Jianguo, senior president of Zoomlion in charge of overseas business, said

however, under the new economic normal, overseas mergers and acquisitions are only one of the measures. Construction machinery enterprises must "walk on two legs", and boosting the competitiveness of their core businesses is fundamental

since 2014, Zoomlion has basically completed the layout of five sectors: construction machinery, agricultural machinery, environmental industry, heavy trucks, and financial services. Sany Heavy Industry once applied for the establishment of private banks. Unlike other construction machinery enterprises, Zeng Guangan said that Liugong group will adopt a conservative management strategy, focus on the field of construction machinery, and will not consider establishing banks and engaging in financial business

the eight immortals cross the sea and each shows his magic power. But it is almost certain that Chinese construction machinery giants will set off a wave of mergers and acquisitions in the world

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