BOMAG is launching new road construction machines
First publishedon www.WorldHighways.com
BOMAG has invested heavily in developing new products, along with sister company Marini
German firm BOMAG continues to grow its presence in the road construction equipment sector. In the 10 years since BOMAG was purchased by the French Fayat Group, BOMAG has broadened its product range beyond being a leader in the compaction sector and invested heavily in its manufacturing facilities. It has also forged strong links with its Italian sister company Marini, the asphalt plant manufacturer, with the two jointly developing a wide array of asphalt road construction technologies.
BOMAG recently held its Innovation Days event at its headquarters in Boppard, Germany, taking the opportunity to unveil new machines and also hint at further developments to come. The company is in a strong position and Jörg Unger, president of Fayat Road Building said, “We had the best year at BOMAG.”
Although the final results had yet to be released, Unger estimated that the firm’s turnover for the year ending would be around €680-685 million and he added that this is a record, “We never had a turnover like this before.”
The firm is now seeing the result of its investment in its sales and service support operations, manufacturing facilities and research and development. Unger said that the company is also developing its share of some comparatively new product areas also. “We are moving forward with new product areas for milling and paving,” he said.
Business activity is strong for BOMAG, despite tough market conditions in the construction equipment sector. Unger commented that some major international markets such as Russia, China, Africa and Latin America have all seen a decline in business activity. However he added that this has been offset to a degree by gains in northern Europe, the US, the Middle East and India. Despite China’s weaker economic performance, this has not affected the Fayat Group’s activities in the country. Unger said, “China is a market where BOMAG is still growing.”
He explained that the firm’s service organisation and customer support operation has been upgraded in China, helping boost sales. In addition, the BOMAG brand has gained from the high perceived value of the products amongst customers, a factor that has been of similarly benefited some of the firm’s key rivals such as the Wirtgen Group. “The demand for products with a higher quality of technology is growing in China.”
Meanwhile the low value of the Euro against the US Dollar has also been a massive benefit for BOMAG, allowing customers in the US to purchase European-made machines at very favourable prices. This has also been the case in the Middle East, as this market also relies on US currency. The firm’s performance in its home market is strong and he said, “The German market is good.”
Fundamentally though, BOMAG is not just relying on its strong market position in compaction equipment and is also gaining market share for its pavers and its milling machines. He added, “The door is opening.”