SANY Heavy Machinery overseas development strategy

16 March,2017


Yu Hongfu, senior vice president of SANY Heavy Industry and chairman of SANY Heavy Machinery, addressed at the SANY First Global Dealer Summit, Nov 21-22, in Kunshan, China. He introduced to the dealers the SANY Heavy Machinery's development strategy in global markets.

Yu said as an important business unit of SANY Group, SANY Heavy Machinery has made impressive achievement. Our core products-excavators and rotary drilling rigs-have ranked NO.1 in China, occupying 22% and 35% of the Chinese market, the first place for many consecutive years, and made remarkable sales of over 100,000 machines in 10 years. The three major R&D centers in Kunshan, Shanghai and Beijing, and the manufacturing bases of parts in Hangzhou and Changshu have covered the whole industry chain. Equipped with the state-of-the-art production line and advanced quality control and testing measures, they could produce 80,000 machines each year, valued over 10billion RMB (1.4billion USD). We invest 6% of the revenue to the R&D each year, and build a first-class R&D team. With a stable, efficient and open management team, we are determined to invest more resources in the expansion of global markets.

SANY Heavy Machinery is committed to helping more dealers succeed. We would expand the product lines for overseas markets and provide world-class machines, especially the mining machinery, mini excavators and small excavators. We would unswervingly implement overseas dealership system, improve dealership network and promotion and sales, and provide products and service “beyond the industry standards and customers' expectations” together with the dealers. We would build a professional global team to provide tailored support and training for the further development of the global dealers.

In the following years, SANY's excavators and piling machinery would reach 211,000 units in the overseas market on average, up by 58% than that of 2016. Especially as SANY's mini and small excavators that meet European and American standards are launched, the market coverage will rise significantly. Therefore, we hope to take the opportunities and build SANY a world-renowned brand with the dealers, making our excavators and piling machinery the industry-leading machines. Our goal is to reach 20billion RMB (2.9billion USD) sales in 2019 and sell 7,000-10,000 abroad, ranked among the top three in the world.

In his speech, Yu also put up with the support SANY Heavy Machinery will provide to the dealers, mainly in the aspects of products, channels, brand promotion, service and parts, and team building.

First, as for the products, in 2017, SANY Heavy Machinery will expand the global product lines to 87 models, including 73 excavators, 12 rotary drilling rigs and 2 loaders. By 2019, we will cover over 85% market. At the European and American high-end markets, our products cover 27 excavators and 1 loader that feature comfort and versatility. At Chinese market, based on the 85% market share, we will launch 38 excavators, 12 rotary drilling rigs and 1 loader with a focus on Euro III excavators and C10 series rotary drilling rigs. In India, while we reach a market share of 90%, we will launch 9 cost-effective excavators for the local market. These world-class quality products will facilitate us to expand the global markets.

Second, we will conduct the global industry layout of the excavators. By market size, we will carry out manufacture in China, USA, Germany, India, Brazil and Indonesia that cover the neighboring countries and optimize production model to increase the profitability around the world.

Third, we will adjust the development strategies to the specific market. In Indonesia and Thailand, we will rely on the cooperation with local joint-ventures, the same in Turkey and Australia. In India, we will work with SANY India to push forward with localization and local manufacturing to improve the competitiveness in product lines, cost and delivery date. In Europe and USA, we will send personnel to support product development and parts for core competitiveness and increased sales, find well-established dealers and professionals to develop the local markets, and carry out local production. As for other countries, we will support the dealers development, market research, marketing management, service, parts and documents.

At last, SANY will expand the dealers' network through major accounts, financing channels and online sales platforms, promote SANY brand with global dealers, establish efficient global service and parts system, build training centers abroad for technical knowledge and language.

SANY Heavy Machinery will adjust from the domestic to the global market, fine develop the overseas business, control risks, increase operation efficiency and carry out digital management for SANY to become an international company and create more value for customers worldwide.


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