China - Dateline : Recent

Storyline:
Chinese construction machinery attracts global buyers

[Stand_up]

Xu Xinchen, Reporter:

"Some 1,200 company representatives from 63 different countries and regions arrived in East China's Xuzhou city — where one of the largest construction machinery makers in the world is based. They came all the way here for these beasts — brand new, custom- made, modern machines."

[Voice_over]

One of the largest purchases was made by WTC Equipment from Brazil — a 3,000 ton crane — costing almost 9 million US dollars per unit. It is a gigantic and costly machine.

As Washington Moura, Chief Commercial Officer of WTC, jokes – older men just get bigger toys. And this toy, he believes, comes with a great quality and a good price.

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Washington Moura, Chief Commercial Officer, WTC:

"It is not just me, but in the entire South American and even the global market, people are discovering the quality of Chinese machinery keeps getting better with time. The quality is high and the pricing is very reasonable. That’s why I believe the global market continues to choose Chinese products."

[Voice_over]

It is expected that the crane will be used to build wind farms. And it will see returns in ten years — a very good time span for such a large investment, according to Moura.

And the crane is not the only thing big in Xuzhou.

Yang Yufeng is the President of Mining Machinery Research Institute at XCMG — the Xuzhou Construction Machinery Group.

He told me that the main reason behind machines getting larger is how the mining business has changed over the past years.

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Yang Yufeng, President of Mining Machinery Research Institute, XCMG:

"Mines are becoming larger as companies continue to consolidate smaller mines. Secondly, large machines can help cut labor cost while improving workers’ safety. Especially in countries like Australia and Brazil, the demand for larger machines continues to grow year by year."

[Voice_over]

The global market for construction machinery saw stagnant growth at the time of COVID-19. Industry reports show that the market started to warm up after 2021. And the market size is expected to grow to over 180 billion US dollars by 2030, according to a market overview on Research Reports World .

China is leading in this large and growing market as the largest construction machinery producer, holding a market share of around 46%, followed by North America and Europe.

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Stuart Brooks, Managing Director, Brooks Group:

"Trading with China makes so much sense. And even in a climate, environment, it’s just up. For us in Perth, it’s the same time zone even. It is very efficient. And the ‘made in China’ brand is actually a badge of quality these days."

[Voice_over]

About 20 percent of XCMG mining machinery are now considered new energy — mainly electrified. And the plan is to offer half of its mining machinery line-up in new energy.

Future technologies like autonomous driving and remote operating were also showcased before the global buyers in Xuzhou.

[Restrictions : No access Chinese mainland]