In the first half of the year, China's construction machinery achieved remarkable results in going global

In the first half of 2019, driven by multiple factors such as infrastructure demand, strengthening environmental governance, and increasing demand for equipment updates, the construction machinery industry continued to grow rapidly, especially with rapid export growth becoming a major highlight.

Recently, Sany Heavy Industry released a semi annual performance forecast announcement, stating that it is expected to achieve a net profit attributable to shareholders of the listed company of 6.5 billion to 7 billion yuan in the first half of 2019, an increase of 91.8% to 106.6% year-on-year. Sany Heavy Industry categorizes the reasons for growth into five types, with the rapid increase in international market share being one of them.

Another giant in the construction machinery industry, Zoomlion, also experienced a double harvest of revenue and net profit. According to the announcement, it is expected that the net profit attributable to shareholders of the listed company in the first half of 2019 for Zoomlion will be 2.4 billion to 2.7 billion yuan, an increase of 171.71% to 212.42% year-on-year.

Data from Liuzhou Customs shows that in the first half of the year, construction machinery manufacturing enterprises represented by Guangxi Liugong Machinery Co., Ltd. steadily increased their exports to overseas markets. From January to June, Liuzhou City exported a total of 1.02 billion yuan of construction machinery products, an increase of 3.3%. The main export markets are the countries along the "the Belt and Road", among which the export to Mongolia, Algeria and Cambodia has increased significantly by 6.2 times, 6.1 times and 2.9 times respectively.

According to statistics from the China Construction Machinery Industry Association, from January to June 2019, the 25 main engine manufacturing enterprises included in the statistics sold a total of 137000 excavators of various types, a year-on-year increase of 14.2%. The domestic market (excluding Hong Kong, Macau, and Taiwan) sold 125000 units, a year-on-year increase of 12.3%; The export sales volume was 12000 units, a year-on-year increase of 38.7%.

A series of data shows that the export of construction machinery leading products has grown rapidly and has become a strong growth point in the industry. Taking excavators as an example, since 2019, the demand for excavators in China has entered a stable growth stage, and the export growth rate will far exceed the domestic sales growth rate. In June alone, the export sales of excavators reached 2695 units, a year-on-year increase of 56.4%.

Experts analyzed that since the implementation of the "the Belt and Road" initiative, it has greatly driven the energy and mineral resources, infrastructure construction, urbanization and industrialization development of countries along the line, and directly stimulated the rapid recovery of construction machinery exports.

During the two sessions this year, Zeng Guang'an, a deputy to the National People's Congress and chairman of Guangxi Liugong Group, also said that the proposal of the "the Belt and Road" initiative provides a historic opportunity for the international development of Chinese manufacturing enterprises, and Liugong Group will further expand its cooperation with ASEAN countries.

曾光安认为，“机遇”主要体现在两方面：其一，“一带一路”沿线国家中，除欧洲国家外，其他国家的市场需求与中国极为相似，这为中国制造业“走出去”提供了国际市场空间；其二，中国制造业在开拓国际业务的同时，也倒逼自身在产品研发、管理、制造及营销等方面转型升级。

以柳工为例，自2003年起进军国际市场至今，柳工已经在100多个国家和地区布局。尤其是在“一带一路”沿线，其业务覆盖率达85%。目前，海外业务占柳工全部业务的30%左右。

Information source: Jijingwang

Editor He Yang of this website/Organizing