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China: China's infrastructure development lifts construction machinery sales
Storyline: China's infrastructure development lifts construction machinery sales [Voice_over] China's construction machinery industry is roaring back to life this spring as the country accelerates its infrastructure development. Nationwide, the average operating rate of construction machinery hit over 37 percent in the first two months of this year, up almost three percentage points from the same period last year. With booming construction activities pushing up demand, machinery manufacturers have reported a sharp increase in orders. One company in south China's Guangxi Zhuang Autonomous Region says the growth momentum shows no signs of slowing. [Sound_bite] Feng Guoxiong, director, excavator manufacturing, Guangxi Liugong Machinery Co., Ltd.: "In January and February, we saw a nearly 80 percent increase compared to last year, and in March, it's still growing on top of that. The momentum hasn't slowed down and continues to improve." [Voice_over] To keep up with the increase in orders, manufacturers are pressuring upstream suppliers to expedite deliveries. Those in the industry say the country's infrastructure ambitions are beefing up demand for construction machinery. [Sound_bite] Ning Jiantu, general manager, domestic marketing center, Guangxi Liugong Machinery Co., Ltd.: "The surge in excavator sales is mainly driven by demand for large, extra-large, and mini excavators. The spike is linked to increased national investment in energy projects, major construction initiatives, and new rural development, including farmland upgrades, water conservancy projects and replacement of manual labor with machinery." [Voice_over] According to the China Construction Machinery Association, the country's excavator sales rose about 23 percent year-on-year in Q1 to more than 60,000 units. [Restrictions : No access Chinese mainland]
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