China News Network: Sany Heavy Industry's "Dragon Swallowing Elephant" has not shown indigestion to promote internationalization

Source: China News Network Reporter: Liu Shuangshuang

Changsha, July 18 (Reporter Liu Shuangshuang) At the beginning of this year, Sany Heavy Industry, a leading Chinese machinery manufacturing company, announced that it would spend 324 million euros to acquire its *5655 competitor, German concrete pump manufacturer Putzmeister. The industry will Sany Heavy Industry this move as "the dragon swallows the elephant", and all parties have a wait-and-see attitude towards the overseas mergers and acquisitions that have changed the competition pattern of the world's concrete machinery.

After half a year, does "Dragon Swallowing Elephant" have indigestion? Can Chinese companies find their *5654 place in the collision of Chinese and Western cultures? On the 18th, the reporter interviewed the relevant person in charge of Sany on this issue.

Tested without indigestion

There are not a few cases of Chinese enterprises merging foreign giants with a high profile, and whether they are successful or not, the process will always be questioned by all walks of life, especially among listed companies, and Sany Heavy Industry is no exception.

On the afternoon of January 31, at the headquarters of Sany Group in Changsha, Sany and Putzmeister jointly held a press conference to officially announce that Sany Heavy Industry will complete the acquisition of 100% of Putzmeister by the end of the *5656 quarter of this year. From the issuance of the acquisition offer to the signing of the acquisition agreement between Sany Heavy Industry and Elephant, it was exactly one month; It took only two weeks for the founders of the two machinery manufacturing giants to actually negotiate a merger.

For Elephant, seeking a target is a strategic decision. As of 2011, Elephant had more than 3,000 employees, sales revenue of 570 million euros and net profit of 6 million euros. Elephant CEO Xiao Yi, a German, admits that Putzmeister's business is doing well, but Sany Heavy Industry's performance growth is better.

At present, Putzmeister has become a member company of Sany Group, and its headquarters Elsita has been identified as the global headquarters of Sany's concrete machinery business outside of China. After the completion of the transaction, the integration of resources between Sany and Elephant in marketing, R&D and business has been completed, and the integration effect has gradually emerged.

According to Jiang Xiangyang, the liaison officer of Sany in Putzmeister*, Putzmeister's business is in good condition, with its business growing by more than 10% in the first half of this year, and the sales of "elephant" pump trucks in many regions are growing rapidly.

"In the first half of the year, the sales volume of Putzmeister's concrete products in the Southeast Asian market increased rapidly, and in addition, the performance in Africa, the Middle East and other regions was also very eye-catching." Jiang Xiangyang revealed.

"Advantages superimposed" to promote internationalization

On the one hand, the integration of elephants is to hope for "superposition of advantages", that is, to fully maintain and give full play to the existing advantages of elephants, and at the same time, inject Sany Heavy Industry's own advantages into elephants to form a mutually beneficial and win-win situation.

Xiang Wenbo, president of Sany Heavy Industry, said that the mutual benefit and win-win situation between the two sides has greatly reduced the management expenses, costs and energy, which is a positive factor for management and business development, and has an excellent role in promoting. And the numbers also prove this, from January to June this year, Sany Heavy Industry's exports of all products doubled year-on-year, and after the completion of the merger and acquisition of Putzmeister, its business increased by more than 10%. The integration of mature resources has opened up new opportunities for it to become the world's leading player.

For Sany, after integration, it will be able to obtain the brand and technology of *5653 manufacturing enterprises and its global sales and service system, take the lead in the global market, and accelerate its layout and internationalization process in the global market.

The results are moving in the direction of Sany's expectations: in the context of the global economy is not very prosperous, in the first half of this year, Sany Group's products were frequently exported to South Africa, Southeast Asia, Latin America and other countries and regions, Sany's sales in the international market doubled year-on-year, and the overseas market expansion reached a new level, and the internationalization process was rapid. Sany excavator,Truck cranes, crawler cranes and other products continue to sell in the international market. According to statistics, from January to June, Sany excavator exports increased by nearly 102% year-on-year; truck crane exports increased by nearly 60% year-on-year; The export of crawler cranes increased by more than 180% year-on-year.