Sina Finance: Sany's overseas layout guides the industry's first-class enterprise demeanor

Source: Sina Finance

"After the financial crisis in 2008, the pace of overseas expansion of domestic construction machinery enterprises has accelerated, both subjective requirements and objective needs." Wang Hexu said. In his opinion, in the overseas expansion of domestic construction machinery giants, the earliest and better effect is Sany Heavy Industry.

At the beginning of this year, Sany Heavy Industry Co., Ltd. achieved a marriage with the German construction machinery giant Putzmeister (commonly known as "Elephant") at lightning speed. To a large extent, the success of the acquisition of Elephant is due to Sany's nearly 10 years of planning and intensive cultivation overseas.

Industry insiders said that in fact, Sany Heavy Industry has played the role of a pathfinder for overseas expansion. In recent years, the pace of "going out" of China's construction machinery industry enterprises has accelerated, and only Sany has a unique international model of "greenfield investment + cross-border mergers and acquisitions + Sino-foreign joint ventures" industry.

Greenfield investment: global layout at least five years ago

If Sany's product exports in 2002 are only the regular path for many enterprises to "go global", then it is a means for few enterprises to dare to try to build their own industrial bases through "greenfield investment" (that is, new investment in other places) to carry out a large international layout.

Sanyi is the most courageous, and it is also the first construction machinery enterprise to invest in the construction of its own R&D and production base overseas, and it is also the enterprise that has invested in the construction of overseas bases and put into production the first overseas base.

This "crab eater" in China's construction machinery industry is one step ahead in the location and layout of overseas bases. In fact, Sany Greenland's investment strategy was launched more than five years earlier than its domestic counterparts.

On November 23, 2006, Sany Heavy Industry Co., Ltd. opened a precedent in the domestic construction machinery industry and signed an investment agreement with the government of Maharastra State, India, and the 5,656 overseas bases were realized, and Sany's overseas base strategy was also taken 5,656 steps. It is also from this year that Sany has completed its layout in many countries around the world: in September 2007, it invested in the United States and built factories in developed countries of construction machinery manufacturing industry for 5656 times; In May 2009, the groundbreaking ceremony of Bedburg Industrial Park was held in Germany; In February 2010, it settled in Brazil, and the sword guide to the United States market; In April 2011, it signed a contract with Indonesia to radiate the entire ASEAN market.

It is worth mentioning that these investment projects are completely different from the "small fights" of the internationalization of general enterprises, and careful analysis shows that the overseas layout of Sany Heavy Industry follows the principle of radiation - India and China correspond to the Asian market, the American factory radiates North America, the German factory radiates the European market, the Brazilian factory radiates South America, and the Indonesian factory radiates the ASEAN country market. At present, Sany India Industrial Park, American Industrial Park, Brazilian Industrial Park and German Industrial Park have all been completed and put into operation, and all of them have achieved localized production and sales. In contrast, the overseas base layout of major domestic construction machinery enterprises is at least five years late.

Industry insiders commented that Sany in all manufacturers have not yet been aware of the time, has invested in India, Brazil, Germany, the United States, Indonesia and other bases, as if inadvertently left a few idle chess, when other construction machinery giants began to try to expand overseas, Sany Heavy Industry's international pattern has quietly formed.

Acquisitions + Joint Ventures: Overseas Expansion "Butterfly Change"

2012 is destined to become another milestone year in the internationalization process of Sany. Because this year, Sany Internationalization not only appeared new highlights, but also played a "combination punch" in one fell swoop.

In January, Sany, which has never really set foot in cross-border acquisitions, announced a "marriage" with its long-time competitor, the German construction machinery giant Putzmeister, at lightning speed, which shook the world; In February, Sany Heavy Industry Co., Ltd. signed an agreement with PALFINGER AG, headquartered in Salzburg, Austria, to jointly establish two joint ventures, each of which will hold 50% of the shares. In July, Sany Heavy Industry's lightning acquisition continued to be staged. Driven by this, Elephant became the acquirer, bringing Intermix, Europe's third-largest mixer truck manufacturer, under its umbrella.

Founded in 1958, Putzmeister is one of the world's most well-known construction machinery manufacturers, with a global concrete machinery *5656 brand and a global market share of about 40% for a long time. Putzmeister develops, manufactures and sells construction machinery worldwide, especially concrete pumps for construction, mining, tunnel construction and large industrial projects. Headquartered in Changsha, China, Sany is a large manufacturer of construction machinery in China and a leader in China's concrete pump industry. China is the world's fastest* 5655 growing market for concrete and other industrial equipment. Putzmeister's business is highly geographically complementary to Sany's. As a leading enterprise in China's concrete pump industry and the first supplier of overseas concrete pumps, the merger of the two companies is in line with a clear strategic and industrial goal: to build a leader in the global concrete pump industry.

Sany Heavy Industry's acquisition of German Elephant is a combination of "China's *5656 brand" and "world's *5656 brand", which is rare in the history of mergers and acquisitions, and is known as a "Sino-German demonstration transaction". Xiang Wenbo said: "For Sany, internationalization has advanced by at least five to ten years. ”

With the completion of the acquisition of Intermix, Elephant has successfully expanded its value chain.

The joint venture project with PALFINGER is for Sany to enter the field of truck-mounted cranes, as well as SanyTruck cranesThe exit brings a new starting point. According to the agreement, Sany PALFINGER SPV Equipment Co., Ltd. (hereinafter referred to as Sany PALFINGER) will build a new plant near Sany Heavy Industry Ningxiang Industrial Park to develop, produce and sell special vehicle equipment such as truck-mounted cranes for the Chinese and global markets. PALFINGER Sany International Sales of Mobile Cranes (PALFINGER Sany for short) will be headquartered in Salzburg. Distribution of Sany wheeled cranes in Europe, CIS countries, including Russia and the Americas.

On September 5th, Sany * joint venture company, Sany PALFINGER Special Vehicle Equipment Co., Ltd., was officially opened, and three new products, PK32080 SPS20000 straight arm crane, straight arm crane SPS30000 and folding arm crane, independently developed by Sany, were officially put on the market.

Global localization: Build a platform with a multi-pronged approach

Over the past 6 years, the core of the layout and cultivation of the pioneer Sany Heavy Industry is to implement the "global localization" strategy. Global localization, including in-depth establishment of localization teams, research and development of localized products, provision of localized sales network and services, etc.

Take, for example, talent localization. In the construction of overseas bases in the past 6 years, Sany Heavy Industry has realized the recruitment and management of local people step by step. At present, in Sany's bases in India, the United States, Brazil, Germany and other bases, not only the vast majority of employees are locals, but the top leaders are basically managed by local talents. This year, Sany acquired Elephant, and there was no "blood exchange" at the level of ordinary employees of Elephant, and there was no "blood exchange" for senior executives.

Building a global and local R&D team is also part of this. In addition to the establishment of research institutes and *5652 technology centers in China, Sany has set up 23 research institutes and 138 product research institutes in the United States, Germany and other parts of the world. By building an international technology R&D network, Sany has set up R&D institutions in open cities in China and the United States, Germany, India, Brazil and other countries, and realized full interaction and parallel design with headquarters designers through the Internet, and skillfully applied the world's high-tech technology to its own products.

By building a global R&D platform, Sany has successfully completed the R&D of localized products such as 36, 37 and 42-meter pump trucks in Europe, and the newly developed 8 sets of products have been well received by customers in Germany; * Create an 8-ton backhoe loader, which has been sold in small batches and become a profit growth point in the Indian market in the future; The 160kW TBM developed for the special coal seam in Russia has been successfully operated in the Walga mine, and the efficiency has been increased by 3 times, which has been highly recognized by the customer.

The establishment of a global sales and service network is a top priority in the internationalization strategy.

Up to now, Sany has offices in more than 200 countries and regions around the world, with more than 300 offices. It has 30 overseas subsidiaries and covers more than 150 countries. More than 1,300 marketing and service personnel provide first-class products and services to global customers overseas all year round, and nearly 300 foreign employees have gradually grown into the backbone of Sany's internationalization process.

At the same time, Sany has established 15 logistics centers and more than 400 spare parts warehouses around the world, including more than 230 overseas, forming a headquarters warehouse, a regional center warehouse, a secondary warehouse and a third-level spare parts supply guarantee system.

With the acquisition of German elephant and the joint venture PALFINGER, Sany's overseas network has been further improved. With the improvement of the global sales network and the establishment of the international brand status, Sany's overseas sales have increased significantly in the past two years, which has handed in a beautiful "pilot test" answer sheet for internationalization. On August 31 this year, the interim report released by Sany Heavy Industry showed that in the first half of the year, the company achieved operating income of 31.76 billion yuan, an increase of 4.6% year-on-year, and continued to lead the industry; At the same time, its overseas market sales revenue was 3.267 billion yuan, a year-on-year increase of 177%.