XCMG is further developing its overseas activities

XCMG is developing its overseas activities with a programme called 'One Belt, One Road'. Representatives from 18 countries recently travelled to XCMG’s headquarters in China to launch the firm’s new Overseas Service Activity. This is focusing particularly on service support for customers involved in the New Silk Road project. The launch event was followed by a seminar at XCMG, with officials discussing business opportunities deriving from the 'One Belt, One Road' strategy. This forms part of a drive by t
Finance & Funding / July 29, 2015
XCMG equipment
Equipment exhibitions worldwide play an important role in XCMG’s international marketing efforts
XCMG is developing its overseas activities with a programme called 'One Belt, One Road'

Representatives from 18 countries recently travelled to 2490 XCMG’s headquarters in China to launch the firm’s new Overseas Service Activity. This is focusing particularly on service support for customers involved in the New Silk Road project.

The launch event was followed by a seminar at XCMG, with officials discussing business opportunities deriving from the 'One Belt, One Road' strategy. This forms part of a drive by the Chinese Government for the country’s key construction machinery manufacturers to benefit from major business opportunities. This activity is an important focus for XCMG and the firm said that internationalisation is a core strategy, with its international marketing focus on developing market share along the route of the New Silk Road. XCMG has a leading position in those countries and also has established a mature marketing network covering 65 countries in Central Asia, West Asia, North Africa, Europe, and Asia-Pacific region.

XCMG has now established branches and subsidiaries in Russia, India and Poland for example, as well as setting up factories in Uzbekistan, Poland, Kazakhstan, Malaysia and Iran. Another major development for the firm’s international operations was its acquisition of concrete pump-maker Schwing. The firm now also has R&D centres in Europe, America and India.

In recent years, Uzbekistan encouraged foreign investment in industry, which has boosted demand for construction machinery sharply. Responding to this change, XCMG opted to found a JV factory in Uzbekistan In 2013. Since then, XCMG’s share in the local market has grown rapidly.

The joint venture factories are playing an important role in XCMG’s development, and more factories will be set up, in Central Asia, South Asia, Southeast Asia and Eastern Europe. XCMG is currently developing plans to expand output at its plant in Uzbekistan. This will allow production of tracked and wheeled excavators and bulldozers, boosting XCMG’s market exploration and brand awareness in Central Asia.

In the Southeast Asia region and in countries like the Philippines, Malaysia and Indonesia, XCMG’s crawler cranes have also been highly successful. Similarly, XCMG machines have proliferated in Qatar, Sudan, Laos, Indonesia, Kazakhstan, Uzbekistan and Turkey.

XCMG recently signed an order for more than 1,000 items of equipment in the Middle East worth more than US$65 million. Other recent large orders include more than 400 items of equipment to South America.

The programme for localised production and sales has resulted in customised products for specific countries. Special machines are adapted for sale in Southeast Asia for a hot and humid climate, for low-temperatures in Russia or the hot and dry climate of the Middle East for example.

The company has also developed stronger partnerships with dealers and, in 2014, founded an Overseas Marketing Strategy Consultative Committee with its Top 10 dealers. In 2015, XCMG brought forward the concept of 'New Service', aiming to improve its overseas service quality and system. Since 2011, the company has developed and improved its overseas service spare parts system, and boosted training. By establishing the service provider licensing mechanism, XCMG streamlined the supply of spare parts. A key development was when it set up an e-commerce platform for coordinated management of overseas spare parts. The firm has continued refining its service and spare parts model, and established the mechanism for authenticating and grading the dealer service staff training.

The service activity in 20 countries along the belt and road will be carried out along with marketing development through 16 international exhibitions as well as product promotion activities in 15 countries. Services in the overseas service activity will be delivered to nearly 10,000 products within the warranty period. During the activity, XCMG will visit 1,000 operators in countries along the route of the road.  

In 2014, XCMG products were exported to 48 of the 65 countries along the belt and road with a total value amounting to US$980 million, sharing 76.1% of XCMG’s total export volume. Today, XCMG’s marketing channel covers 42 countries along the road. XCMG is also speeding up its construction of spare parts and service centres and will build new spare parts centres in Russia, Algeria, Sri Lanka, Cambodia, Russia, the State of Mongolia, Thailand, Cambodia, Turkmenistan, US and Canada.

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