XCMG Accelerating Its Globalization
January 13, 2015
In XCMG's grand strategy, tech-innovations are roots, and globalization activities are leaves. When the roots get deeper, the leaves are flourishing. All the efforts in such innovations done by XCMG will ultimately be reflected in her new territory adventure.
In 2011, XCMG had AMCA, a Dutch company, and two R&D factories for major parts under FT, a German company, merged into her fleet. In 2012, XCMG made acquisition of Schwing GmbH in German, a leading global concrete machinery business.
In 2013, XCMG’s ground openings included two R&D Centers in Germany and the United States, one procurement center in Europe, and one excavator factory in Uzbekistan, which was her sixth overseas assembly base.
In 2014, a XCMG poured 200 million US dollars into Brazil for a production base, as her first model in South America, which covers an area of 800,000 square meters and can make 7000 units of mainframe machines.
The globalization model by just making market promotions has become a thing of the past. XCMG involves new concepts in her all business elements -- products, services, factories, finance and culture.
What kind of stance should be for a Chinese machine maker who is just trying to locate her camps around the world? The model of low cost and the snowball effect are apparently inapplicable to the new environment. XCMG responded by her strategic plans to integrate global resources, build global value chains and grab the high-end markets.
Indigenous innovation doesn’t mean to make a cart behind closed doors. XCMG, from very early days, knows it is important to bring good ideas of other people in and make them part of such innovation, and take every contact with international leading firms as a cooperation opportunity to shorten the distance. It requires not only a global perspective, but more global capabilities to integrate the world's premium resources. And it requires not only hardware integration, but also soft skills to handle cultural differences.
The merger with Schwing GmbH is a critical step in XCMG’s roadmap. After experiencing from friction through adaption to integration, this Sino-German collaboration brings a legend of a one-two punch to the world’s stage, ranking the world's top three and maintaining a leading position in the market.
XCMG sells thousands of her mainframe machines to 173 countries a year. She maintains her market position among the world’s top three in major developing countries, such as South America, Southeast Asia, the Middle East, Central Asia, Central and Eastern Europe. Also, she is accelerating the expansion in the developed countries. In the United States, Canada, and Japan, breakthroughs are done by her mainframe machines with small batches.
In 2014, XCMG set her overseas sales plans as an early bird. The major targets included not only developing countries, but also major developed ones. This time, as a Chinese business, she fought no longer the price wars, but gradually shifted to the battle ground focusing on brands, technologies and services, particularly by providing buyers with her premium packaged solutions.
Mr. Wang Min, Chairman of board of XCMG made his judgment that, as slow down and integration going into depth, the heavy construction machine industry will enter the post competition area, and businesses will come into collaboration other than bulling against each other, and fight market wars by globalized brands as weapons.
XCMG is intended to speed up her overall globalization, increase her overseas market share significantly. "You could not get a fair share of the global market and you are not a world-class enterprise.”
"Globalization of XCMG is no longer a simple shape growth of overseas revenues. One direction of her road map starts from the made in China to the made in Brazil and in turn to deliver this template from Brazil to other corners worldwide. Another direction follows R&D centers as her knights deploying in Europe and the United States by recalling the strategy of taking alien’s merit to resist alien’s invasion, which was proposed by Wei Yuan, a Chinese mastermind in mid-nineteen century, to collect European and North American markets into XCMG’s territory. "
A new globalization panorama is unfolding. Let us wait to see what kind of exciting XCMG will show to the world.
