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Bauma China 2014 – exceeding expectations

SHANGHAI/CHINA, January 9, 2015 - The trade fair bauma China 2014 took place in November and was praised once again for its internationality as well as quantity and quality of visitors. The Chinese equipment manufacturers showed their improved performance and capabilities. And it was obvious that they are likely going to expand their export efforts.

by Rudi Grimm & Lasse Lommel

Despite the current market slowdown in China, 191,000 visitors (2012: 180,000) from 149 countries attended the bauma China 2014. Equipment for construction and the fabrication of building materials, large vehicles and light equipment were displayed in Shanghai from November 25 to 28. With regards to the exhibitors, 2,907 out of 3,104 were of Chinese origin. After China, the top five exhibiting countries were Germany, the United States, Italy, Korea and Japan.

Eugen Egetenmeir, CEO of Messe München, was impressed by the enthusiasm which was present throughout the trade show: “After a twelve-year evolution, the bauma China is now not only a platform for product presentations but has become a large industry party where visitors search to engage in talks and cooperation for further future growth.” Li Fangyu, VP Marketing of China, Volvo Construction Equipment, was equally thrilled: “The bauma China 2014 took place in the midst of a recession on the construction equipment market. However, according to the exhibitors and VIP-customers, the fair was quite encouraging. In times like these, the bauma China provides us with vitality, hope and further momentum.”

The top-ten visiting countries (after China, of course) were Russia, Korea, Japan, India, Malaysia, Thailand, Singapore, Taiwan, Hong Kong and Indonesia. “The bauma China remains a fixed date in our calendar as it is a trade fair for our customers in South East Asia, India, the Middle East, South America, Africa and Russia”, reports Ulrich Reichert, CEO of Wirtgen China.

 

 

 

transformer at the Lovol stall at the bauma China 2014

The biggest transformer at the stall of Lovol stall dominated the exhibition space of the bauma China. Whether he was there to scare the competition or just catch the visitors’ eyes is not known. However, it was definitely among the most photographed objects at the show. | photo: bi-ConstructionNews

XCMG dump truck and mining excavator at the bauma China 2014

One was slightly reminded of Liebherr’s large stall at the bauma Munich. XCMG demonstrated: we can do the same! A huge dump truck with the corresponding mining excavator underlines the ambitions of this large Chinese equipment manufacturer. | photo: bi-ConstructionNews

The Chinese Outlook

Yet, the Chinese equipment manufacturers are facing problems: They have built up large production facilities which they find more and more challenging to fully utilize by means of the Chinese demand only. Thus, they are aiming at increasing their exports, as became evident from talks during the exhibition. Now, their primary focus lies in Asia, Africa and Latin America. But also Europe will become a more important export target for the Chinese manufacturers.

In this spirit, Zoomlion plans to expand the share of its international revenues from currently 10% of total revenue to 30-40% over the next five years. In order to achieve this goal, further acquisitions of suitable companies can be expected like the most recent one: In Germany, Zoomlion bought M-TEC, an expert for dry mortar.

Wang Xiahohui, General Manager of SDLG Import & Export Company, expects first-class prospects for further expansion of his company. He claims that only 20% of the world market for construction equipment is reachable for premium manufacturers. The remaining 80% of the market host large potentials for “value brands” like SDLG, that combine powerful equipment with an attractive price tag, he adds.

Thus, with regards to their ambitious goals, Chinese manufacturers need suitable dealerships in the targeted markets around the world. Step by step one will go on this journey, explains Wenjun Lin, Sales Director of Sany Germany GmbH. Sany would like to partner up with premium dealers, despite the fact that this process may take two to three years of time. Sany believes this is the only way to a long-term success.

Zhu Lin, Marketing Manager at XCMG Import & Export Co., regards her company to be on the right track to becoming an important international equipment manufacturer. XCMG already sells equipment in 158 countries. In Europe, XCMG has invested 15 Mio Euro in an R&D facility in Krefeld, Germany. Furthermore, XCMG has established a parts centre in the Netherlands and an assembly plant in Poland.

Goal-orientated, the Chinese manufacturers work hard on expanding their product range: While Sany Heavy Equipment shows a Dumper in the 45t class, also other Chinese manufactures like XCMG and LiuGong presented new equipment at the bauma China.

XCMG was able to announce a sale of a 450t mobile crawler crane to South Korea which can lift up to 260t.

LiuGong presented its newest and biggest wheel loader so far – the CLG8128H. It features a 7.0m³ rock bucket, 12t lifting capacity with a 4,04m dumping height and 360KN breaking force, which, according to LiuGong, makes this wheel loader suitable for work on large project sites as well as in the extractive industries. Fast loadings of 7.4s are believed to improve work efficiency. In total, LiuGong displayed 21 machines at their stall. The company was especially eager to present its internal value chain of the production process: Starting from customer requests and wishes, it runs through the subsequent R&D stages and production process which uses “world class” components, up to the stringent quality control and the after sales service. LiuGong chose to present itself as a high-class company and a reliable partner for customers worldwide.

The presentation of heavy equipment manufacturer Zoomlion focused on the company’s especially efficient and “green”, environmentally friendly machines. For example, the company displayed a builder’s hoist that features an energy recuperation system which was developed by the Dutch company Raxtar and generates electric energy while the lift is moving downwards. According to Zoomlion, the displayed hoist is ultra fast, features the latest available safety equipment, is low on maintenance cost and has intelligent controls.

The crane manufacturer Comansa Jie presented its new flat-top tower crane. With a maximum lifting capacity of 6t, it is Comansa Jie’s smallest crane. With this model, the company targets mostly Asian markets, namely China, India and other regional South-East Asian markets but also markets in the Middle East. The crane can be fitted with extension arms that vary between 30 and 60m length, adjustable in 2.5m intervals. Consequently, the crane is flexible and can cater to the requirements of various different construction sites.

Jonyang, manufacturer of excavators, proclaimed to extend its current portfolio of mobile and crawler excavators by additional 6-8t models and one 40t model.

uncovering of the new dump truck by Sany at the bauma China 2014

Ceremonially uncovered and greeted with great ballyhoo: the new dump truck by Sany with an articulated joint in the 40t class. | photo: bi-ConstructionNews

“Products tailored to suit the Chinese market”

The German equipment manufacturers regarded the bauma China as a showcase to present their activities throughout Asia. For Wacker Neuson, Asia is an important future market in which it aims to grow further. “The implementation of our long-term strategy for Asia increasingly takes effect”, states Cem Peksaglam, chairman of the board of Wacker Neuson SE. “The already implemented measures, like the systematic expansion of local product offer, the growth of the sales network and increased regional investments will lead to an appreciably growing share of the company’s turnover in Asia in the medium- and long-term.” The need for maintenance and repairs of infrastructure, especially in China’s metropolises, steadily rises. Meanwhile, the trend towards compact construction equipment of high quality continues.

Wacker Neuson’s operations in China commenced 15 years ago with the opening of the company’s own sales and servicing network. The company’s headquarter is based in Shanghai, additional locations include Hong Kong and Shenzhen. “The key for long-term success are market tailored and competitive products and services – and that’s what we are working on with diligence” explains David Wei, Regional President Greater China of Wacker Neuson. The company has set up its dealer outlets in almost all Chinese provinces. In order to further improve its position, Wacker Neuson relocated their regional headquarters for Greater China from Hong Kong to Shanghai. At the new location, the company also erected a parts centre for the Region in order to achieve quicker shipping times for spare parts.

However, also the decreasing growth rates of the Chinese economy left their marks at the bauma China. Liebherr expects the excavator sales in China in late 2014 to be 46% below the numbers of the peak year 2011. As of October 2014, the company has sold 74,975 units. Liebherr does not expect the sales to increase before the entry into force of the next emission standards. While the market for compact excavators in the range of 8 to 15 tons grows quickly, the sale numbers of large excavators decrease. In 2014, the Chinese market contributed 9% of the Liebherr’s total batching equipment turnover. “We must adapt to different growth rates than those seen in the past”, believes Christoph Kleiner, CEO of Liebherr’s Ehingen Plant. “Local manufacturers are definitely catching up”.

The Liebherr-Components AG mainly targets the sale of gearboxes, hydraulic pumps and motors as well as fuel injection systems in China. The company’s mobile crane division launched the LTM 1300-6.2 with a lifting capacity of 300t. Liebherr’s excavators and earth moving equipment meets China’s new emission standard III (The Chinese stage III is equivalent to Europe’s stage IIIA) that come into force in October 2015.

Liebherr China has expanded its dealer network by six locations since 2012 and is now present in 18 provinces. At the same time, Liebherr introduced its bulldozers to the Chinese market.

Deutz presented itself together with its Chinese joint venture Deutz (Dalian) Engine (DDE) at the bauma China 2014. The engine specialist from Cologne showcased its new products for the above-mentioned, upcoming emission standard III. As a consequence of the intensification of the emission standards, the demand for modern engine technology surges and provides Deutz the opportunity to win over further market shares with high-engineered products.

Emission stage four is only expected after 2020 in China. Hence, for the Chinese market, engines lacking after-treatment of exhaust gases will be supplied as China stage III variants, thus engines can be identically constructed for the Chinese as well as Export markets.

“China is still our most important market in Asia”, explains Michael Wellenzohn, member of board of Deutz AG for Sales/Service & Marketing. “We are aiming to expand our business here and trust in continuous growth. Our chances of expanding within the market lie in our technology, which will be locally available in the future.”

new large wheel loader of the H series from LiuGong at the bauma China 2014

The new large wheel loader of the H series was first shown to the public at the buma China 2014 by LiuGong. It boasts a breaking force of 360KN | photo: LiuGong

XCMG stall at the bauma China 2014

Go big or go home: XCMG showed their full range of products. | photo: bi-ConstructionNews

earth moving equipment from SDLG, Volvo´s value brand, at the bauma China 2014

SDLG, Volvo’s value brand, displays their earth moving equipment and claims that value products can cater to 80% of the total construction equipment market worldwide. | photo: bi-ConstructionNews

Dressta dozer at the bauma China 2014

The traditional brand DRESSTA has gained new momentum under their new owners LiuGong. The ex-Polish, now Chinese company showcased a dozer at the bauma China. | photo: bi-ConstructionNews