| The Chinese building equipment includes a wide choice of specialised machinery. Alongside excavators, cranes and loaders, there is also railroad construction machinery, different-purpose trucks, hoists, pneumatic equipment and other types of construction machinery.
The capacity of the Chinese construction equipment market in 2008 (including the sales of pneumatic equipment and other stationary building machinery) has been estimated by experts at $38,6 billion. Last year the Chinese construction machinery market rose by 30%. Nevertheless, though the economy witnessed an enormous boom, analysts do not consider the Chinese market a profitable sector to make investments in because of the low cost of the machinery made in China. The price for the Chinese machinery is less than 50 - 150 % of the price for imported machinery, which draws a lot of Chinese buyers.
CHINESE BUILDING EQUIPMENT AND FOREIGN CAPITAL
Nowadays overseas enterprises choose to cooperate closely with Chinese producers. The majority of the leading producers of building equipment brought their own brands to China. Time passed they started to cooperate with their Chinese counterparts. This scheme helps overseas manufacturers have a closer look at the Chinese construction equipment sector and ensure the sales of their production but under another trade mark. As a result, foreign producers have reduced the cost of their products and at the same time have remained competitive on the market. Small Chinese producers that failed to enter into an agreement with foreign business counterparts were forced out of the competition. The close cooperation between Chinese companies and their foreign counterparts has become highly profitable for both parties. For example, 2 big companies Zoomlion and SANY earned about $2, 86 billion last year. More than that, Zoomlion has bought the European company CIFA and, therefore, has grown into the world's largest manufacturer and supplier of concrete mixers.
In the current year the the sales of the Chinese building equipment on the world's market have reduced, chiefly because of the decline in the demand for building machinery on the biggest markets of the USA, the EU and Russia. Manufacturers of forklift and front end loaders have suffered a lot. The thing is the majority of highly developed nations have suspended some large construction projects because of the economic fall, which has brought about the decrease in the demand. A large number of preventive steps have been taken in Russia to protect Russian companies from the influx of the Chinese export.
Hence, during the coming years Chinese companies will be producing construction machinery primarily for the domestic market, at least till the world's economic crisis comes to an end. The Chinese government has granted a $570-billion financial aid to the sector. However, the money is not enough for all manufacturing companies and they look forward to cooperation with foreign manufacturers. |
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