Starting from scratch: Chinese construction machinery penetrate into European markets

In two weeks after the Belt and Road Forum for International Cooperation, Global Connection, a program aired on CCTV Channel 2, casts its lens on XCMG Polish Plant in Warsaw and XCMG headquarters in China on May 30, 2017, to reveal the trend of Made-in-China along the “Belt and Road”.

Location of XCMG Polish Plant

Poland features a strategic geographic location in Central and East Europe as the portal and powerhouse that connects the “Belt and Road” with the European Economic Community. XCMG enters the Polish market in 2004 and built the first joint-venture plant there in 2010, which serves for product localization, including R&D, refit and assembly, in addition to after-sales services and support of spare parts. The plant will cover Central and East European markets as a foothold. Recent years witnessed increased varieties of products of XCMG sold in Poland. As a result, XCMG has taken the lead among Chinese brands in the market share. The local market shares of XCMG in terms of loader, roller and grader reached over 50% among Chinese counterparts.

XCMG Polish Plant

Mr. Przemyslaw Bodzioch, Deputy General Manager of XCMG Poland, in an interview

Mr. Przemyslaw Bodzioch, Deputy General Manager of XCMG Poland, has witnessed that XCMG grows from zero to zillion in Polish market. He has full confidence in XCMG’s future prospect in Poland.

Mr. Kuba, XCMG Poland scheduler, in an interview

Mr. Kuba, XCMG Poland yardman, told CCTV reporter that: “My colleagues and I are very happy to work for XCMG, which has brought high quality products to Polish clients and provide many jobs for us. We welcome more Chinese enterprises like XCMG to Poland, and we welcome more Chinese friends here.”

XCMG equipment at construction site

Mr. Tubądzin, a local client, in an interview

Mr. Tubądzin, a local client, told the reporter that: “XCMG has provided very good products for us, along with their high quality of technical support and after-sales services. We are honored to be a cooperative partner for XCMG, and we are grateful for all the support that XCMG has provided for us. I hope through our continuous cooperation, more products of XCMG will be sold in the European market.”

Mr. Ma Xiaokou, Deputy General Manager of XCMG Import & Export Co., Ltd., in an interview

Mr. Ma Xiaokou, Deputy General Manager of XCMG Import & Export Co., Ltd., told the reporter that: “XCMG will continue to give full play to the advantages of the joint-venture plant. We will help XCMG products to truly become smart products that meet the needs of European users by acutely capturing their special requirements and habits of use and localizing products at joint-venture plants.”

Industrial opportunities increase when demands for construction machinery burst in countries along the “Road and Belt”

As China promotes the “Road and Belt” Initiative, demands for mutual exchange of needed construction machinery products have increased dramatically in countries along the “Belt and Road”, pulling up export volumes of Chinese construction machinery and leading to overseas expansions of Chinese construction machinery manufacturers.

When CCTV reporters visited the excavator workshop of XCMG, 30 excavators were under busy manufacturing. The reporter was told that this batch of order was from the Philippines. Starting from early this year, XCMG received massive orders of excavators, in particular those from Southeast Asia. XCMG has made multiple improvements on excavators based on local climate for those exported to Southeast Asia to better cater to customers’ needs.

Thanks to the mode of localizing products for different countries, XCMG products have become more and more popular in overseas markets. The volume of products exported to countries along the “Belt and Road” takes up 75% of the total of XCMG exports.

Mr. Wang Min, XCMG Chairman, in an interview

Mr. Wang Min, XCMG Chairman, said to the reporter that: “In the first four months this year, XCMG has exported products worth USD 290 million, an increase of 97% over the same period of last year. This won’t be happening if we fail to keep on building our brand, improving our services, enhancing the quality of products and earning the trust of customers. In the coming years or decades, we will input capital, energy and manpower into global efforts, in particular those in countries along the Belt and Road. This includes merger and acquisition, networking construction and base development.”

As the Belt and Road Forum for International Cooperation wrapped up, numerous overseas projects will see their implantation. With high quality products, sound overseas layout and efficient and effective after-sales, XCMG will be bound to be a strong support for the “Belt and Road” Initiative.