Chinanews丨Sany practices the new idea of international production capacity cooperation and shares the dividends of the "Belt and Road".

 

Sany residential industrial households broke through the Saudi market

In the 2016 annual report data newly disclosed by Sany Heavy Industry*, the company's international sales revenue in 2016 was 9.286 billion yuan, leading the industry; the company's overseas business quality continued to improve, and India, Europe, South Africa, the Middle East and other regions achieved rapid growth.

This set of data shows that the above regions are highly consistent with the "Belt and Road" roadmap. As a leading enterprise in China's construction machinery industry, Sany has long relied on the "Belt and Road" to actively deploy overseas. At present, in the overall sales of Sany Group, the sales of overseas markets have exceeded 40% of the company's performance, of which 70% of the revenue comes from countries and regions along the "Belt and Road".

Direct beneficiary of the Belt and Road Initiative

The construction of the "Belt and Road", made in China will undoubtedly become an important construction force, and it will also be an important choice to open up the "Belt and Road" interconnection. There are two main logics for the machinery industry to benefit from the "Belt and Road": one is to benefit from the interconnection of facilities along the route, which will bring about an increase in infrastructure construction in countries along the route and drive the demand for construction machinery and other fields; The second is the national trade pull, involving the output of advantageous equipment, including high-speed rail equipment, container equipment, oil and gas equipment, ship equipment, etc.

Among them, Sany, as a leading enterprise, is the first to share the dividends of the "Belt and Road" and become the most direct beneficiary. Last year, Sany Heavy Industry achieved international sales revenue of 9.286 billion yuan, leading the industry. In the first quarter of this year, Sany Group's overseas sales increased by 30% year-on-year, while the sales of the ten overseas regions increased by 90% year-on-year, of which Russia increased by more than 400%, Latin America increased by more than 300%, the Middle East increased by more than 200%, Southeast Asia increased by nearly 30%, and Asia and Australia increased by more than 10%.

At the same time, due to Sany's outstanding performance overseas, it has also won the favor of the capital market. In a number of brokerages recommended by the "Belt and Road" concept stocks, have identified that with the national level of the "Belt and Road" in-depth promotion, for the overseas export of construction machinery and production capacity cooperation provides a strong boost, covering more than 60 countries and regions, the total population of 4.5 billion along the "Belt and Road", contains more opportunities, and will be the focus of the work of Sany as the key promotion object. According to the statistics of the China Business Industry Research Institute, as of the close of March 31, the total market value of listed companies in China's A-share construction machinery industry was 220.28 billion yuan, of which Sany Heavy Industry ranked first with 55.14 billion yuan, and the leading position in the industry was highlighted.

Seventy or eighty percent of overseas markets are in the "Belt and Road"

Looking at the global layout of Sany industry, 70% to 80% of Sany's overseas markets are currently in the "Belt and Road", the world's longest economic corridor.

In the "New Silk Road Economic Belt", the industrial parks to be built by Sany in Xinjiang, Beijing and Shenyang occupy the most advantageous position. In particular, Sany Northwest Heavy Industry, located in Xinjiang, covers the Xinjiang market and forms an overall layout facing the northwest and radiating Central Asia. In fact, Sany has industrial parks in the United States, Germany, India and other places, and has formed ten sales areas covering Africa, Asia-Pacific, Russia, the Middle East, Latin America and other regions, focusing on the "Belt and Road". In addition, after Sany's acquisition of Putzmeister, 10 manufacturing plants in Turkey, Belgium, Spain, and Russia were added, so that Sany's entire layout formed a line from the Northeast to the Far East, Siberia, and Mongolia, just like the path of the traditional Silk Road in ancient times.

Not only that, but the layout of the Maritime Silk Road has also begun to take shape. At present, Sany Heavy Industry has set up factories in Shanghai Lingang, Zhuhai, Zhejiang, Jiangsu and other places. In this key area, Sany has established the Zhuhai Industrial Park to carry out the marine engineering equipment business, which is the second largest new business segment after Sany entered the field of energy equipment. In addition, the company has also invested in India, Indonesia and other countries to form a complete "Maritime Silk Road".

Sany and other Chinese enterprises visited South Africa to carry out cooperation in many fields

*Quality and production capacity* The United States meets the needs of countries along the route

At present, many countries along the "Belt and Road" have the need to accelerate industrialization and urbanization, and have great market potential. Under the guidance of the "Belt and Road" initiative, China's engineering enterprises have begun to set sail quickly. The figure of Sany construction machinery products shuttles through various infrastructure projects. Global *5655 Airport: Saudi Arabia's Jeddah International Airport, Algeria's Longest Expressway, Africa's *5655 Power Plant, South Africa's Kusile Power Station...... With its excellent quality, Sany products are participating in more and more important international projects.

In addition to construction machinery products, Sany has also built residential industrialization projects, smart ports, new energy technologies, and intelligent oilfield exploitation projects into new business fulcrums on the "Belt and Road".

The residential industrialization project is a new field that Sany Group has entered in recent years. In this field, Sany has achieved rapid development and has become the first enterprise in China that can provide overall solutions for PC complete sets of equipment. At the same time, overseas, Sany has participated in the local construction of Russia, Algeria, Malaysia, Indonesia, South Africa, Saudi Arabia and other countries through the industrialization of housing.

In the cooperation agreements signed between Sany and overseas governments and enterprises, clean energy has frequently become a key word. Among them, the most representative is the Adama wind power project in Ethiopia. The Ethiopia*5655 wind power project, jointly built by Sany Group, CGCOC and PowerChina, uses a total of 102 Sany wind turbines with a total installed capacity of 153 MW, solving 20% of the electricity demand in Addis Ababa, the capital of Ethiopia. At present, Sany has owned (or co-owned) 5 million kilowatts of wind resources in India, of which 2 million kilowatts of wind resources are being measured in Andhra Pradesh, and more than 500,000 kilowatts of mature wind resources are being negotiated for acquisition, and Sany India's wind turbine assembly line is under construction.

New businesses such as residential industrialization projects, smart ports, new energy technologies, and intelligent oilfield exploitation projects, coupled with the leading product construction machinery, Sany "Five Little Dragons" goal of going to sea meets the actual needs of countries along the "Belt and Road", and also allows Sany to win the opportunity in the new round of global competition.

 Sany Heavy Industry is favored by the Indian market, and the Bauma Exhibition has won large orders　　

New ideas for international capacity cooperation

In addition to the expansion of business areas, Sany also takes the "Belt and Road" as a roadmap to transform the overseas cooperation model to a new model of international production capacity cooperation and going to sea together.

In October 2015, a delegation of Chinese infrastructure (energy) industrial and commercial enterprises initiated and organized by Sany Group visited India. The Chinese industrial and commercial enterprise delegation complements each other's advantages and forms a flexible overall solution from equipment supply to EPC and PPP, which is highly valued by the Indian government, and the two sides have exchanged and discussed investment projects such as energy, infrastructure construction and housing industrialization, and reached a number of cooperation intentions. Subsequently, Sany went to South Africa and other countries together with its corporate partners to further strengthen overseas cooperation, build a strategic alliance of the whole industry chain, and enhance its ability to develop the international market by relying on its overall advantages.

As China's technology and production capacity enter the stage of reverse export, in the future, Sany will also try to find suitable partners and locations to export technology under the drive of the "Belt and Road" strategy, and further accelerate international production capacity cooperation.

In June last year, Sany signed the "Ethiopia-Hunan Equipment Manufacturing Park Operation and Management Agreement" with the Hunan Provincial Department of Commerce, Ethiopia Industrial Park Development Company, Ethiopia Investment Commission, Changsha Economic Development Zone Group, CGCO, etc. As one of the main participants and initiators, Sany participated in the investment in the Hunan *5658 Overseas Cooperation Park in Africa, and became the first batch of enterprises to settle in. In this way, Sany realizes technology transfer, contributes to local development, and transforms cooperation between production capacities into development results that benefit the people of both sides.

The "Belt and Road" is the roadmap for Sany's development, and international production capacity cooperation is the specific method for Sany to realize this roadmap. The accelerated adjustment of the global industrial structure, the new wave of infrastructure construction, and the fact that developing countries are vigorously promoting the process of industrialization and urbanization have provided unprecedented opportunities for international production capacity cooperation. Sany is also striving to seize this once-in-a-lifetime opportunity, actively promote cooperation with countries along the "Belt and Road", and accelerate the pace of Sany's internationalization.