| The Chinese construction equipment includes a wide variety of purpose-designed machinery. Along with excavators, cranes and loaders, there is also railway building machinery, various-purpose trucks, building hoists, pneumatic equipment and other types of building machinery.
The capacity of the Chinese building machinery sector in the year of 2008 (including the sales of pneumatic equipment and other stationary building machinery) has been estimated at $38,6 billion. In the year of 2008 the Chinese building equipment market soared by 30%. Nonetheless, despite the enormous boost, some experts do not find the Chinese market a profitable sector to make investments in because of the low cost of the building equipment produced in China. The price for the Chinese construction equipment is less than 50 - 150 % of the price for imported machinery, which appeals to many Chinese customers.
CHINESE CONSTRUCTION EQUIPMENT AND OVERSEAS CAPITAL
Nowadays foreign companies choose to cooperate closely with Chinese companies. The majority of the prosperous companies of building equipment brought their own brands to the Chinese sector. Time passed they began to cooperate with their Chinese partners. This strategic scheme helps foreign producers have a better look at the Chinese building equipment market and insure the sales of their production but under another trade mark. As a result, overseas companies have reduced the cost of their products and at the same time have remained competitive on the market. Small Chinese producers that did not manage to enter into an accord with foreign business counterparts were forced out of the competition. The close cooperation between Chinese producers and their overseas counterparts has become very profitable for both parties. For instance, 2 large companies SANY and Zoomlion made about $2, 86 billion in 2008. Moreover, Zoomlion has purchased the European company CIFA and, therefore, has turned into the number 1 manufacturer and supplier of concrete mixers in the world.
Recently the export of the Chinese machinery has reduced, mostly because of the decline in the demand for construction equipment on the leading markets, such as the USA, Europe and Russia. Manufacturers of front end loaders and forklift loaders have suffered a lot. The thing is the majority of highly developed nations have suspended some big construction projects in the result of the economic crisis, which has brought about the decrease in the demand. A lot of preventive measures have been taken in Russia to shield Russian companies from the influx of the Chinese production.
Therefore, during the coming years Chinese producers will be producing machinery largely for the home market, at least till the global economic fall finishes. China's government has granted a $570-billion aid to the sector. Nevertheless, the money is not enough for all manufacturing enterprises and they look forward to mergers and takeovers with overseas producers. |
