XCMG in acquisition mode
XCMG's intended purchase of major concrete machinery manufacturer Schwing is said to be part of the Chinese firm's aim of being in the top 3 companies for construction machine sales by 2015.
XCMG is believed to be in advanced negotiations over the purchase of major concrete machinery manufacturer Schwing as part of its ambitious plans to break into the top three companies for construction machine sales by 2015. One company source said the acquisition of Germany-based Schwing would be a “big thing” for the global construction machinery industry. “We feel they can contribute to our competitiveness in the concrete machinery sector. Our lower manufacturing costs and their high level technology make us fit together naturally,” said the XCMG source.
“We have been number one [in construction machine sales] in China for more than 20 years and want to be top three in the world by 2015.”
Meanwhile company assistant president Jainsen Liu said XCMG had been focusing on BRICS nations where, he said, there is a high demand for construction machinery. The company recently set up a manufacturing facility near Rio de Janeiro in Brazil and is in talks with an unnamed firm about creating a second site elsewhere in the country.
XCMG is also looking to increase its market share in Europe, where Liu perceives construction machine demand is also strong.
“Our construction machinery performance and price is getting more competitive compared with European and US manufacturers,” added Liu.
XCMG unveiled its new wheeled excavator at INTERMAT. Dailynews reported earlier this week how the company was also exhibiting its fourth-generation XCT30 truck crane which, the company says, has performance and design features prompting a “new development direction” for the global truck crane industry.