| The Chinese building equipment includes a full choice of specialized machinery. Along with excavators, loaders and building cranes, there is also railway building machinery, various-purpose trucks, building hoists, pneumatic equipment and other types of building machinery.
The capacity of the Chinese building equipment market in the year of 2008 (including the sales of pneumatic equipment and other stationary construction machinery) has been estimated by experts at $38,6 billion. Last year the Chinese construction machinery market went up by 30%. Yet, although the Chinese economy witnessed an enormous boost, some experts do not consider the Chinese market a profitable sector to invest in due to the low price for the machinery produced in China. The cost of the Chinese building equipment is less than 50 - 150 % of the price for imported machinery, which draws many Chinese buyers.
CHINESE CONSTRUCTION EQUIPMENT AND OVERSEAS CAPITAL
Today overseas companies choose to cooperate closely with Chinese manufacturers. The majority of the leading companies of building equipment brought their own brands to China. Time passed they began to cooperate with their Chinese partners. This business strategy helps foreign manufacturers have a closer look at the Chinese building equipment sector and assure the sales of their production but under a different trade mark. As a result, foreign producers have cut down the cost of their production and at the same time have remained competitive on the market. Small Chinese manufacturers that failed to enter into an agreement with foreign business counterparts became unable to compete with large producers for new clients. The close cooperation between Chinese companies and their overseas partners has become very profitable for both parties. For example, two big manufacturers SANY and Zoomlion earned about $2, 86 billion last year. Besides, Zoomlion has purchased the European manufacturer CIFA and, thus, has become the world's leading manufacturer and supplier of concrete mixers.
Recently the export of the Chinese machinery has dropped, mostly because of the decline in the demand for building machinery on the biggest markets, such as the USA, Europe and Russia. Producers of front end loaders and forklift loaders have suffered a lot. The matter is the majority of highly developed countries have suspended some big building projects due to the economic nosedive, which has caused the decline in the demand. A number of preventative steps have been taken by the Russian government to protect Russian manufacturers from the influx of the Chinese production.
Therefore, during the coming years Chinese companies will be producing machinery largely for the home market, at least till the global economic crisis comes to an end. The sector has been granted a $570-billion aid. Still, the money is not enough for all manufacturing companies and they look forward to cooperation with overseas companies. |
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