Securities Daily: The rise of China's construction machinery corps in the first half of the collective "going to sea" copy*

Source: Securities Daily Reporter: Li Jianjun

If the development of China's light industry holds up China's export trade and allows "Made in China" to begin to occupy overseas, then the development of China's construction machinery industry fundamentally represents the level and level of "Made in China" and represents the achievements of China's economic transformation and industrial upgrading.

From Zoomlion's acquisition of Italian concrete machinery giant CIFA in 2008, to Sany Heavy Industry's acquisition of the global concrete*5656 brand Putzmeister in 2012, XCMG's acquisition of German concrete equipment giant Schweiying, and the recent acquisition of the third largest concrete in EuropeMixer trucksAs well as the manufacturer of special mixing equipment, the overall rise of China's construction machinery corps in the international market is becoming a beautiful landscape of "Made in China" to the world.

The rise of the "legion".

"Now the typical Chinese exporter is no longer a shoe factory in Guangdong, but a manufacturer of some kind of equipment or machinery." Andrew Batson, head of research at Beijing-based Longzhou Economic Consulting, said.

On July 1, 2011, the Financial Times released the new global 500 (FT Global 500) made a more direct and thorough expression of this, in this list with a total market value of 26.2 trillion US dollars, Sany Heavy Industry with a market value of 21.584 billion US dollars for the first time, ranked 431st, but also pushed Chinese machinery companies to this list for the first time.

In this regard, industry observers said that "Sany Heavy Industry was shortlisted for the first time, which confirms the world development pattern and development trend of the industrial engineering industry, and indicates the rising rise of China's machinery industry." Under the leadership of Sany Heavy Industry, more Chinese machinery companies will enter the world's top 500 in the future. ”

In the past 8 years since the listing of Sany Heavy Industry, it has transformed from a simple concrete machinery leader to a comprehensive construction machinery manufacturer, and its sales revenue and profits have advanced with an annual growth rate of more than 50%: sales revenue jumped from 390 million yuan in 2000 to 50.776 billion yuan in 2011.

In July this year, "International Construction" magazine announced the "world's * 565,550 construction machinery manufacturers ranking" - the industry's most concerned * new annual YellowTable rankings, China's Sany Heavy Industry and Zoomlion both ranked among the world's top ten. The survey also shows that in the past 10 years, the proportion of sales of China's construction machinery companies in the world's top 50 has increased by at least 10 times, from US$841 million to US$30.6 billion.

Xiang Wenbo, president of Sany Heavy Industry, told reporters, "Although Sany only started in the mid-90s of the last century, its development speed and growth have shocked the world, and Caterpillar and Komatsu have listed Sany as a strong opponent in the next ten years." ”

Competitive advantage lays the foundation for overseas mergers and acquisitions

Tracing the history of the development of China's construction machinery industry, for a long time before the mid-1990s, imported products represented by Putzmeister and another German brand Schwein occupied the relative right to speak in China's concrete machinery market. And 20 years later, this pattern has been turned upside down.

From 2008 to 2011, China's engineering and lifting machinery recorded a trade surplus for the fourth consecutive year. The import and export trade of engineering and lifting machinery was in deficit before 2004, and the trade surplus began to be achieved in 2005, and the trade surplus rate increased year by year.

In 2005, the total import and export volume of construction machinery reached 6.004 billion US dollars, including 3.064 billion US dollars in imported construction machinery, 2.940 billion yuan in export construction machinery, and achieved a trade surplus in 5 months of that year, and the annual trade deficit narrowed to 100 million US dollars, which is regarded as a pioneering year for China's construction machinery industry.

Only 6 years later, according to the statistics of the General Administration of Customs, in 2011, China's construction machinery import and export trade volume has soared to 24.955 billion US dollars, of which the import value is 9.045 billion US dollars, the export value is 15.909 billion US dollars, and the trade surplus is 6.864 billion US dollars.

The person in charge from the Machinery Industry Federation said, "The gradual improvement of the popularity of China's engineering and lifting machinery products and the increase in international market share year by year are the main factors that produce the trade surplus." At the same time, when the world economy is not stable, Chinese enterprises seize the favorable demand situation of the majority of developing countries, give full play to the cost-effective characteristics of China's engineering and lifting machinery products, and achieve a good market position in developing countries, which is reflected in the export of developing regions such as Russia and other CIS countries, Africa and ASEAN, which is still showing a rapid growth trend. ”

With the gradual improvement of the popularity of Chinese construction machinery enterprises on the international stage, the overseas mergers and acquisitions of well-known domestic construction machinery enterprises are also gradually smoothing. Qingke data show that in the first half of 2012, the Chinese market completed 422 mergers and acquisitions, the machinery manufacturing industry in the first place, completed 50 mergers and acquisitions, accounting for 11.8%. Since the beginning of this year, mergers and acquisitions of Chinese construction machinery giants have followed: Weichai Group acquired Ferretti, Sany Heavy Industry acquired Putzmeister of Germany, Liugong acquired Poland's HSW, and XCMG Group acquired Shi Weiying.

Regarding frequent overseas acquisitions, Qingke believes that "on the one hand, the valuation of the target company has fallen due to the European debt crisis; On the other hand, it also reflects the desire of China's construction machinery industry for core technology and the demand of overseas markets.

Taking Sany Heavy Industry's acquisition of Putzmeister as an example, Thomas Luedi, a global managing partner at McKinsey & Company, believes that "through this acquisition, Sany can not only obtain the industry's leading technology and brand, but also achieve rapid layout in overseas regions with the help of Putzmeister's sales and service network." ”

According to the annual report of Sany Heavy Industry released in March this year, its international revenue reached 3.425 billion yuan in 2011, a year-on-year increase of 60.72%, revealing a strong momentum of its overseas business expansion.

For the trend of accelerating the overseas expansion of Chinese construction machinery industry enterprises, the American "Business Week" made this comment, "Although China's new manufacturers have not yet competed in the developed market, they have challenged Caterpillar Inc., Siemens, General Electric and other established equipment manufacturers in South America and Russia." China's construction machinery industry will soon overtake Japan and Germany to become the world's second-largest exporter after the United States. ”