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KHL Interview with Yu Hongfu: Focus on the Three Modernizations and Move towards Sustainable Development

2021.08.12

Recently, KHL's "International Construction" magazine published an interview with Yu Hongfu, chairman of Sany Heavy Machinery, on "Sany Heavy Machinery Towards Sustainable Development". In the article, Yu Hongfu and KHL reporters had an in-depth discussion on Sany's global excavator sales, equipment electrification, autonomous driving and internationalization strategy.

The following is a translation of the report:

Sany is one of the world's leading construction machinery manufacturers and is ranked fourth in the latest Yellow Table. Yellow Table is a list of the top 50 global construction machinery manufacturers based on sales volume under "International Construction", among which excavators are the most purchased construction machinery in the world.

When Yu Hongfu, chairman of Sany Heavy Machinery, received an invitation for an interview, he readily agreed despite the need for a translator for the process.

Yu Hongfu said: "The core key now is to make our machinery and equipment intelligent. ”

Yu Hongfu was very friendly, and at the end of the interview, he took the time to discuss football and the relative advantages and disadvantages of the Chinese and English football leagues.

He has good reason to stay so positive, as Sany Heavy Machinery set a sales record of more than 98,000 units last year. Even though nearly 90 percent of sales come from China, Mr. Yu said the growth in overseas sales is also a key part.

He explained: "In overseas markets other than China, sales of Sany products increased by 80% compared to the previous year. Sany's largest overseas market is India, and its business development in the United States and European countries is also gaining momentum. ”

Obviously, 80% can be considered a significant increase, but this stems from its lower level. He estimates that sales in overseas markets will only account for about 10% of the entire Sany Group's sales.

Yu added: "In order to become a world-class company, we must increase sales in overseas markets. ”

"Our products are becoming more and more popular and recognized by users in overseas markets. Producing high-quality products is the foundation of our life and the cornerstone of all our achievements."

Focus on international development

In overseas markets such as Indonesia and Thailand, Sany is already in a leading position. He revealed that the company is currently targeting four strategic markets, namely Australia, Europe, Japan and North America.

The challenges of becoming a global company and increasing sales worldwide include adapting machines to different emission regulations, standards and customer needs. For example, the needs of customers in the UAE will be different from their needs in Argentina, Canada and Germany.

Yu Hongfu said: "The needs of customers in different countries and regions are different, and what Sany can do is to use our strong R&D capabilities to meet these different needs from all over the world. We tend to provide our customers with a variety of different products, so that they can choose what they want and meet the unique needs of different application scenarios. ”

There is no doubt that if Sany wants to achieve its ambitious goals, it needs to increase sales in the global market. However, considering that the Chinese market is the largest construction machinery market in the world, it makes sense for Sany to focus on China.

In 2020, the Chinese market continued to grow on the strong basis of 2019 despite the decline in sales in the rest of the world.

The wave of machine substitutions is coming

There are concerns that China's construction machinery is about to face a downward cycle, but the current expectation is that any decline will be a little more gradual than what we have seen in the past.

Sany is investing in electrification equipment, such as this oneMicro-diggingSY16E

Yu Hongfu is confident in the market and said: "China will undoubtedly remain a huge market in the next few years. In China, it has become a trend to replace human labor with machines. ”

This is a trend in China, but it is also true in other parts of the world.

"In the last decade, we have focused on improving the durability and reliability of our machines, which is a key factor, but now the focus is on making our machines smart," Yu explains. ”

The entire R&D team of Sany has been investing a lot of energy in how to build advanced excavators, how to apply more telematics information technology to machines, and how to make them smarter.

We've also put a lot of effort into developing electric and autonomous devices, which you'll soon see in developed markets.

The person in charge of Sany Heavy Machinery said that Sany has mastered the automatic driving technology of excavators. However, the question remains how to apply this technology, how to bring more value to customers, and how to price it correctly.

Aim at the "3060" target

The biggest trend in the world today is sustainability. As the Chinese government promotes the dual carbon goals, Chinese construction machinery manufacturers will play a key role in the development of electrified equipment, which is bound to become more and more popular.

Yu Hongfu mentioned that the Chinese government's "3060" goal is a key factor in driving companies to invest more time, money and resources in power equipment.

The "3060" goal means that China will strive to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.

China is currently the world's largest carbon emitter, and to achieve the "3060 target", it will take a sea change, which is one of the reasons why the government is prioritizing and promoting electric energy.

China's EV market is huge. In 2020, about 1.3 million electric vehicles were sold in China, accounting for about 40% of the total sales in the global market.

Yu added: "We have a solid foundation in China to develop and manufacture electrification equipment. The automotive industry in China has given us great support, and we are working closely with the automotive industry and keeping an eye on its development. ”

Looking to the near future, he says: As in many markets around the world, there is a shortage of skilled operators in China. Next year, Sany will launch a series of products that make it easier for operators to work. This includes artificial intelligence, which learns the habits of operators and helps them make the right choices.

In the future, Yu said, Sany envisions connecting construction sites so that equipment on the site can interact with information and work automatically, although this is still some time away from becoming a reality.

Yu Hongfu concluded: "There is no doubt that automatic excavators and electric excavators will become a trend

Sany GroupMarket dynamics

Next article:The Ministry of Finance, the National Development and Reform Commission, and the Energy Administration jointly issued a document to verify: whether the new energy subsidy funds are issued in a timely and fair manner!

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KHL Interview with Yu Hongfu: Focus on the Three Modernizations and Move towards Sustainable Development

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KHL Interview with Yu Hongfu: Focus on the Three Modernizations and Move towards Sustainable Development

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Related testimonials

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