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20 April 2012

Shantui is keen to grow both organically and by acquisition

Shantui Construction Machinery intends to grow both organically and by acquisition, according to vice president Li Dianhe. The company has relied heavily on its bulldozer line in the past but is developing a wider product range. The firm bought Chinese firms making concrete equipment and road machines and is actively looking at further potential acquisitions. Dianhe was unable to say much at this stage but said, “We are still negotiating.”

Although it is very strong in China, and particularly with its bulldozers, exports are an important part of its turnover. Dianhe said, “Right now we sell into over 120 countries worldwide and Russia is our biggest export market. We sell more than 1,000 machines/year in Russia, not only dozers but rollers, wheeled loaders and excavators as well.

He added that Shantui is currently evaluating the feasibility of setting up a factory in Russia, which would be situated within 500km of Moscow as this is better from the human resources angle. The company also has a strong presence in Latin America, Africa and a number of other Asian countries such as Indonesia, Malaysia, the Philippines and Vietnam. “In the whole of Africa we have good sales. Right now we have three subsidiaries in Africa, in South Africa, Ghana and Kenya.”

Ghana has been a good market for machines such as the SD22 and SD32 dozers as well as 20-30tonne excavators, while the road investment in Algeria, Egypt and Morocco have also resulted in good sales turnover for the firm according to Dianhe. But the company’s SD10 and SD16 dozers are also now available in Stage IIIB/Tier 4 Interim compliant versions and Shantui is gearing up to sell these machines in Europe and North America. “We have supplied machines already in Finland, Germany and the UK. We sold an SD16 dozer in the UK and it is working well.”

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