Sany plans to set up integrated bases in Brazil and South Africa

(Netease Finance May 1 Author: Chen Ran)

Net profit in the first quarter increased by 170% year-on-year, bringing greater ambition to Sany Heavy Industry. Xiang Wenbo, president of Sany Heavy Industry, said in an interview with NetEase Finance today that the land acquisition of the Brazilian Industrial Park has been completed, and the next step will be to build another integrated production base in South Africa, which will complete the global layout of Sany Group together with India, the United States and Germany Industrial Park.
On November 23, 2006, Sany Heavy Industry invested 60 million US dollars in Pune, India, to build a construction machinery manufacturing base, thus taking the step of overseas market development. In April this year, Sany India Industrial Park was officially opened, giving Sany the ability to manufacture concrete plants in India. In the next few years, Sany Heavy Industry India Industrial Park will also build 6 large-scale factories to build a large-scale comprehensive base integrating R&D, manufacturing, sales and service of construction machinery.
On May 12, 2009, a total investment of 100 million euros of Sany Heavy Industry Germany Industrial Park held a groundbreaking ceremony, the future will be built an engineering equipment manufacturing plant, a research and development center and a training base, the project is divided into three phases, the first phase of the project will start production this year.
"We originally planned to use the German base to cover the entire European and African markets, but after some investigation, we found that the African market is too different from the European market and needs to be treated differently, so we initially plan to build another integrated base in South Africa, which will take on the task of serving Africa." Xiang Wenbo said.
According to the planning of Sany Group, to achieve an output value of 100 billion yuan by 2012, the layout of overseas markets will undoubtedly contribute to the realization of its goals, but the above strategic arrangements are difficult to play an important role in a short period of time.
To this end, Sany Heavy Industry has set its sights on the Hong Kong capital market. In the announcement on April 26, Sany Heavy Industry said that the board of directors has passed the resolution to issue H shares, according to the total share capital budget, no more than 282 million H shares will be issued in Hong Kong, and the funds raised will be used for product capacity expansion, technical transformation, and product upgrading; construction of domestic and foreign industrial parks; The construction and improvement of domestic and foreign sales network and service system.
As for the scale of the funds raised, Xiang Wenbo is expected to be around 10 billion, and he said that he has no more information to disclose before the funds are actually in hand. "But for part of the funds will be used to further expand production capacity, I can confirm that we still have more than 600 pieces of equipment in arrears, and we can't produce it, otherwise the financial report performance in the first quarter will be more beautiful."