Sany reveal international expansion plans at Conexpo

[IBH]

Sany’s huge expansion plans
China’s expansive spending on infrastructure projects has encouraged domestic machinery producer Sany Heavy Industry to look for other countries experiencing a similar urbanisation process, and try to increase its revenue from overseas activities to 50%.

“In the next two years, Sany plans to build plants in overseas markets of great potential, such as Indonesia, Russia, North African countries and South Africa,” said Zhou Fugui, vice-president of Sany Heavy Industry and chairman of Shanghai Sany Science and Technology.

Like China, these emerging economies will invest a lot of capital in infrastructure construction, according to Zhou.

“Sany will not miss these opportunities,” he said.

According to Zhou, Sany will build plants and research and development centres in these areas to design and develop the most popular products in those regions.

“Sany is China’s largest machinery manufacturing listed company, and has an estimated total market capitalisation of over 132.6 billion yuan (US$18.94 billion. Our goal is to be an international company, and to achieve that, the company's international share should account for no less than 50% of total sales,” said Zhou. Currently, that figure is only about 10%.

Of the 1,000 Sany crawler cranes operating in the world, half of them are used in China, and while the domestic market is huge, Sany is planning greater overseas expansion.

“Going abroad is a strategic step for Sany,” Zhou said.

So far, the company's global development has been rapid.

A research and development centre and a manufacturing centre, costing $60 million, recently became operational in India. A 40,000m² plant worth $60 million in the United States and a project worth $138.8 million in Germany are currently under construction. In addition, Sany is planning a $200 million project in Brazil.

“By 2015, the 100 top Chinese machinery manufacturers will account for 85% of the industry's total revenue,” said the head of the China Construction Machinery Association (CCMA) Su Zimeng.

Source: http://ceca.roplnews.com/welcome/industry-news/sany-heavy-industry-news/