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Started to build aircraft carrier for construction machinery
According to information from the China Construction Machinery Association, by 2007 there were more than 2,000 construction machinery manufacturers and research institutes in the country; the net value of fixed assets in the industry was more than 270 billion yuan. “However, the world’s construction machinery giant Caterpillar has exceeded US$40 billion in sales in 2006. This means that China’s construction machinery manufacturers do not add up to one Caterpillar.†Even China’s largest construction machinery manufacturer Xuzhou Construction Machinery Group's sales are only about 7% of Caterpillar's. Jiang Lin, deputy secretary general of China Construction Machinery Industry Association, said.
Wang Jinxing, director of the integrated department of the China Construction Machinery Association and senior engineer, said that despite this, after years of development, China has already established the basis for building aircraft carriers for construction machinery. According to the introduction of Feng Baoshan, Marketing Development Department of China Machinery Industry Federation, after years of development, China's construction machinery industry has formed some industrial bases divided by regions, such as Hunan Construction Machinery represented by Zoomlion, Sany Heavy Industry, and Shanhe Intelligence. The Jiangsu base represented by Xugong, Changlin and Zhenjiang; the Guangxi construction machinery represented by Guangxi Liugong, Yuchai and Liujian; the Anhui construction machinery represented by Helilift, Xingma and Jianghuai. In this regard, Zhang Guomin, a professor at Peking University, believes that the combination of companies in the region is often an important basis for the achievement of regional brands.
Internationalization is the only way for brand growth
To cultivate world-class brands, China’s construction machinery industry began its exploration from the beginning of reform and opening up.
Most of the backbone enterprises of construction machinery in China have experience in joint ventures and cooperation with foreign companies. Xugong had a joint venture with Caterpillar in excavators, Liebherr in concrete machinery and cranes, and more than 10 foreign-funded enterprises such as Kawasaki in the loader; Shantui and Komatsu had bulldozers and excavators. After joint ventures and cooperation, Sany Heavy Industry and Deere (Sales) have also cooperated.
According to Zhan Chunxin, chairman of Changsha Zoomlion Heavy Industry Technology Development Co., Ltd., most of the companies achieved the expected goals in cooperation with foreign companies. The products of these joint ventures and cooperative companies are also mostly sold to the international market.
According to Alan Ilan, president of the China International Famous Brand Association, measuring the degree of internationalization of enterprises depends not only on how much sales of overseas markets account for their share of total sales, but also on the number of transnational talents owned by companies and whether there are international companies. Management methods, etc.
At the production site of Guangxi Liugong Machinery Co., Ltd., the author saw this as an example of Liugong’s “humanization internationalizationâ€: David Liu, vice-president of Liugong’s “Laowai†company, is explaining work to the people around him. . The vice president of Liugong shares came from a famous foreign construction machinery company. He has played an important role in Liugong's production and operation.
Play synergy to prevent "kicking"
Chinese construction machinery is big but not strong
Since the reform and opening up, with the rapid development of China's economy, the construction machinery industry has grown rapidly. China has become a major producer of construction machinery. However, China is not a strong country in the construction machinery industry due to the impact of the company's scale and internationalization, especially its key core technologies.