- Chinese Construction Machinery On the International Market

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Chinese Construction Machinery On the International Market

Date Added: September 20, 2009 05:32:01 PM

The building equipment produced in China includes a wide variety of specialised machinery. Along with excavators, loaders and construction cranes, there is also railway construction machinery, different-purpose trucks, hoists, pneumatic equipment etc. The capacity of the Chinese construction machinery sector in 2008 (including the sales of pneumatic equipment and other stationary construction machinery) has been estimated at $38,6 billion. In the year of 2008 the Chinese construction machinery market soared by 30%. Still, despite the huge boom, some analysts do not find the Chinese market a profitable sector to invest in because of the low cost of the machinery made in China. The cost of the Chinese machinery is less than 50 - 150 % of the price for machinery produced overseas, which attracts a lot of Chinese customers. Chinese construction equipment and overseas capital At present overseas enterprises choose to cooperate closely with Chinese producers. The majority of the leading producers of building machinery brought their own brands to the Chinese sector. Atrewards they began to cooperate with their Chinese counterparts. This scheme helps foreign manufacturers have a closer look at the Chinese construction machinery sector and ensure the sales of their production but under a different trade mark. As a result, foreign manufacturers have lowered the cost of their products and at the same time have remained competitive on the market. Small Chinese manufacturers that failed to enter into an agreement with foreign business partners became unable to contest with large companies for new customers. The close cooperation between Chinese companies and their overseas counterparts has become very profitable for both parties. For instance, two large companies Zoomlion and SANY earned about $2, 86 billion in 2008. More than that, Zoomlion has bought the European manufacturer CIFA and, thus, has become the leading producer and supplier of concrete mixers in the world. In the recent time the the sales of the Chinese construction equipment on the world's market have decreased, largely because of the decline in the demand for building machinery on the biggest markets of the USA, the EU and Russia. Manufacturers of forklift and front end loaders have suffered a lot. The thing is the majority of highly developed countries have suspended some big building projects because of the economic fall, which has caused the decline in the demand. A number of preventive measures have been taken by the Russian government to protect Russian producers from the influx of the Chinese production. Therefore, during the coming years Chinese manufacturers will be producing construction machinery largely for the home market, at least till the global economic crisis ends. The sector has been given a $570-billion aid. Still, the money is not enough for all manufacturing companies and they look forward to mergers and takeovers with overseas companies.

Chinese Construction Machinery On the International Market

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