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Chinese Construction Machinery On the International Market |
| Date Added: August 28, 2009 03:25:12 AM |
| Author: William Blair |
| Category: Shopping: Equipment |
| The Chinese building equipment includes a full variety of specialized machinery. Along with excavators, loaders and construction cranes, there is also railway construction equipment, various-purpose trucks, building hoists, pneumatic equipment etc. 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%. Yet, despite the enormous increase, analysts do not consider the Chinese market a profitable sector to invest in because of the low price for the building machinery manufactured Chinese companies. The price for the Chinese building equipment is less than 50 - 150 % of the price for machinery manufactured overseas, which draws a lot of Chinese customers. Chinese construction equipment and overseas capital These days foreign companies choose to cooperate closely with Chinese manufacturers. The majority of the leading manufacturers of construction machinery brought their own brands to China. After a while they began to cooperate with their Chinese companies. This scheme helps foreign producers take a better look at the Chinese construction machinery sector and assure the sales of their products but under a different trade mark. As a result, overseas producers have decreased the cost of their products and at the same time have remained competitive on the market. Small Chinese manufacturers that did not manage to cooperate with overseas business partners were forced out of the competition. The close cooperation between Chinese manufacturers and their overseas counterparts has turned out very profitable for both parties. For instance, two large companies Zoomlion and SANY made around $2, 86 billion in the year of 2008. Moreover, Zoomlion has purchased the European manufacturer CIFA and, therefore, has become the number 1 producer and supplier of concrete mixers in the world. In 2009 the export of the Chinese machinery has decreased, chiefly due to the decline in the demand for building machinery on the leading markets of the USA, the EU and Russia. Producers of front end loaders and forklift loaders have suffered greatly. The matter is the majority of highly developed states have suspended some large building projects in the result of the economic nosedive, which has brought about the decrease in the demand. A number of preventive measures have been taken by the Russian government to shield Russian companies from the inflow of the Chinese export. Therefore, during the coming years Chinese manufacturers will be producing construction equipment largely for the home market, at least till the world's economic crisis comes to an end. The sector has been granted a $570-billion aid. Still, the money is not enough for all manufacturing companies and they look forward to mergers and takeovers with foreign companies. |
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