| The building equipment made by China-based enterprises includes a full variety of purpose-designed machinery. Along with excavators, loaders and construction cranes, there is also railway building equipment, different-purpose trucks, building hoists, pneumatic equipment and other types of building machinery.
The capacity of the Chinese building machinery sector in the year of 2008 (including the sales of pneumatic equipment and other stationary building machinery) has been estimated at $38,6 billion. In 2008 the Chinese construction equipment market soared by 30%. Yet, despite the huge increase, some experts do not find the Chinese market a profitable sector to invest in because of the low price for the machinery manufactured Chinese companies. The cost of the Chinese machinery is less than 50 - 150 % of the price for imported machinery, which attracts many Chinese buyers.
Chinese building equipment and overseas capital
Now foreign companies choose to cooperate closely with Chinese manufacturers. The majority of the flourishing companies of construction equipment brought their own brands to China. After a while they began to cooperate with their Chinese counterparts. This scheme helps foreign manufacturers take a closer look at the Chinese building equipment market and assure the sales of their products but under a different trade mark. As a result, foreign manufacturers have lessened the cost of their products and at the same time have remained competitive on the market. Small Chinese companies that failed to cooperate with overseas business counterparts became unable to contest with big companies for new clients. The close cooperation between Chinese manufacturers and their foreign counterparts has turned out very profitable for both parties. For example, 2 large companies SANY and Zoomlion made around $2, 86 billion in 2008. More than that, Zoomlion has purchased the European manufacturer CIFA and, thus, has become the largest manufacturer and supplier of concrete mixers in the world.
In the current year the export of the Chinese machinery has reduced, mainly due to the decline in the demand for construction machinery on the biggest markets, such as the USA, Europe and Russia. Manufacturers of front end loaders and forklift loaders have suffered a lot. The matter is the majority of highly developed states have stopped the development some big construction projects because of the economic fall, which has led to the decrease in the demand. A lot of preventive steps have been taken in Russia to protect Russian producers from the influx of the Chinese export.
Therefore, during the coming years Chinese manufacturers will be producing construction machinery mainly for the home market, at least until the global economic crisis finishes. The sector has been granted a $570-billion financial aid. Still, the money will not be enough for all manufacturing companies and they look forward to cooperation with overseas manufacturers. |
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