Major domestic manufacturers accelerating their overseas expansion in developed markets
After weathering more than two years of weak domestic sales and struggling with excess capacity, China's construction machinery market is set for a recovery in 2014, fueled by increasing overseas demand.
Su Zimeng, secretary-general of the Beijing-based China Construction Machinery Association, said that conditions are stabilizing. He noted that all major domestic companies in the sector are accelerating their overseas expansion and making large acquisitions in developed markets.
Zhan Chunxin, president of Zoomlion Heavy Industry Science and Technology Development Co, the world's sixth-largest construction machinery maker by sales value, said that his company will shift focus from excavators, bulldozers and pipe-layers to agricultural machinery, heavy trucks and public service vehicles. The company aims to sell these products in the domestic and foreign markets.
A factory to produce wheel loaders and excavators was established in India last year and the company is building another plant in Brazil.
Zhan is also considering setting up factories in Russia and South Africa to expand the company's business channels to Eastern Europe, Central Asia and sub-Saharan Africa over the next three years.
