China Economic Weekly reporter Guo Zhiqiang reported from Hunan.
On November 15, the "Sany South Africa ABP" project broke ground in Johannesburg, South Africa. With an investment of R300 million, the project will be Sany's regional manufacturing center, logistics center and talent center after completion.
At the beginning of December, a group of employees from India were receiving training on road machinery operation at Sany Training Base in Loudi, Hunan Province. Not long ago, the project of Sanyi Road machine localization production in India has been successfully completed and rolled off the production line.
These are the rapid responses of Sany Group to seize opportunities in overseas markets after the expansion of the BRICS countries.
On August 24, 2023, the BRICS countries decided to invite Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates to become full members of the BRICS cooperation mechanism from January 1, 2024. The number of members of the BRICS cooperation mechanism has increased from 5 to 11.
As the world's leading Chinese construction machinery manufacturer, Sany Group actively practiced, entered the game, deeply participated in the major historical process of BRICS cooperation, and regarded the BRICS market as a historical opportunity that Sany should not miss for its development. On November 17, at the first BRICS Innovation Base Entrepreneur Forum, Xiang Wenbo, Secretary of the Party Committee, Rotating Chairman of Sany Group, and Chairman of Sany Heavy Industry, delivered a speech as Vice Chairman of the BRICS Innovation Base Industrial Innovation Alliance.
According to the data, Sany Group has achieved cumulative sales of more than 70 billion yuan in Brazil, Russia, India, South Africa and six countries invited to join the BRICS cooperation mechanism. Among them, sales will be completed in 2022 1450,000 sets of equipment, sales of more than 13 billion yuan. In the first three quarters of 2023, sales exceeded 14 billion yuan, accounting for about 40% of Sany Group's overall overseas sales in the current period.
In 2002, the first step of BRICS was taken, which was also the first step of Trinity's globalization.
In 2001, the concept of "BRICS" was born, and after this expansion, the proportion of BRICS countries in the world's population increased from 42% to 47%, the total economic output increased from 26% to 29%, and the total value of goods increased from 18% to 21%. The color of gold bricks is more abundant and heavier.
"Through BRICS+ cooperation, China has led other emerging market countries with similar development goals to achieve common development through platforms such as South-South cooperation," said Hu Yat Shan, chief advisor of the Malaysian Centre for Pacific Studies. ”
As the world's leading construction machinery manufacturer, Sany is deeply involved in the major historical process of BRICS cooperation. In 2002, Sany started its globalization journey, and among the first batch of products sold overseas, 4 motor graders were exported to India, which was its first stop to the BRICS market.
Over the past 21 years, Sany has grown rapidly in India. Zhu Dacheng, chairman of Sany India, told China Economic Weekly that Sany has invested more than 7 in its localized manufacturing plant in Pune, IndiaWith 500 million rupees, Sany now has more than 2 percent in the Indian market50,000 units.
Zhu Dacheng introduced that at present, Sany cranes, piling machinery, and reach stacker products rank first in the Indian market, and excavators and mining wide-body vehicles are developing rapidly.
Not only India, but also the rapid development of the construction machinery market in various BRICS countries have brought rapid growth opportunities to China's construction machinery industry represented by Sany.
Xiao Hua, general manager of Sany Brazil, said that Brazil, as one of the world's top 10 economies, has a land area of more than 800,000 square kilometers and a population of 200 million, and has a considerable market size. When Sany officially started sales in Brazil in 2010, its annual sales were only tens of millions of yuan, and it is expected to reach 30 times the initial sales this year.
Argentina is the second largest market for construction machinery and equipment in Latin America. "In 2022, the sales volume will be 20 times that of the first year, and the number of equipment will exceed 1,200 units, and the brand influence and brand value will be significantly improved. Ma Xianlin, general manager of Sany Latin America, said.
The African construction machinery market is also booming.
Liu Guosheng, general manager of Sany East Africa, said that Ethiopia is one of the top three populous countries in Africa, the location of the headquarters of the African Union, and the "Cape of Good Hope" where Africa and the Eastern world are docked.
Liu Guosheng said that in 2006, Sany entered the Ethiopian market, of which, the second phase of the Ethiopian Adama wind farm has a capacity of 153 megawatts, using 102 Sany SE7715 wind turbines, the project is so far China's largest wind turbine export order.
In 2005, Sany's first equipment was unveiled in South Africa. The person in charge of Sany South Africa said that in the past 18 years, Sany South Africa's sales have risen from one million yuan to 800 million yuan in 2023.
Almost all major projects have Sany equipment involved".
Over the years, BRICS cooperation in the field of infrastructure has been expanding and deepening. Infrastructure construction is naturally inseparable from construction machinery.
In the past 20 years, Sany equipment can be seen everywhere in BRICS countries: in Brazil, whether it is the World Cup venue or the Olympic stadium, the contribution of Sany construction machinery and equipment is indispensable. At the Burj Khalifa in Dubai, UAE, Sany ultra-high pressure trailer pump has set the world's highest pumping recordIn India, the world's tallest "Statue of Unity", Sany Crane Equipment has completed 80% of the lifting work. Since the second half of 2021, more than 1,600 Sany brand equipment have participated in the construction of the Saudi megacity NEOM project.
Liu Guosheng said that in East Africa, Sany's brand awareness has gone from being unpopular when it first entered the market to now becoming a household name.
Zhang Liang, general manager of Sany South Africa, said: "Sany equipment is involved in almost all major projects. For example, as early as 2013, 60 Sany equipment was constructed at the Kusile Power Plant, Africa's largest thermal power plant project, and the most critical lifting task of the thermal power station was undertaken. ”
Sany concrete equipment and hoisting equipment maintain the first market share in Saudi Arabia and the United Arab Emirates, not only the Burj Khalifa, but also many key projects, such as the "Belt and Road" demonstration project Dubai Haxiang Clean Coal Power Station, which also uses a lot of Sany's equipment. Wang Fengkai, general manager of Sany Saudi Arabia, said.
Xiang Wenbo told China Economic Weekly: "Over the years, Sany Group has been deeply involved in the BRICS market, not only participating in the construction of infrastructure, port operation, hydrogen energy development, wind power generation and other aspects, but also directly exporting advanced production capacity, building lighthouse factories, and bringing employment training, which have been deeply integrated into the market environment of BRICS countries." ”
Focusing on me and operating locally", we will lay out intelligent manufacturing factories in BRICS countries.
In the first half of 2023, Sany Heavy Industry Co., Ltd., a listed company under Sany Group, achieved international sales revenue of 2246.6 billion yuan, a significant increase of 3587%, and international revenue accounted for 5688%, the majority of the company's revenue and profit** in the international market.
Localization is the secret of Sany's global success. Xiang Wenbo said that Sany implements the business strategy of "self-oriented, local operation, and service first", and has changed from the past product export to the integration of global resources to support global business. The BRICS countries are the markets that Sany prioritizes in terms of globalization.
In Russia, Sany has set up a local sales team, and in order to better meet the needs of local customers, it has launched a series of construction machinery and equipment adapted to local working conditions, such as the production of low-temperature cranes adapted to extremely cold environments.
Sany's plan to build smart factories in the BRICS countries is also eye-catching.
It is better to teach a man to fish than to teach him to fish. Xiang Wenbo believes that the fourth industrial revolution and the third energy revolution are superimposed, and the construction machinery industry is in an unprecedented super technology window period, and globalization, digital intelligence, and low-carbon have become the consensus of the industry.
Under this technological trend, Sany's localized intelligent manufacturing base in BRICS countries will undoubtedly drive local technological progress.
Sany's Beijing Pile Driver Factory and Changsha No. 18 Factory are the only two "lighthouse factories" in the global heavy equipment industry that have been recognized by the World Economic Forum in Davos, marking the company's leading position in intelligent manufacturing in the world.
According to Xiang Wenbo, starting from 2022, Sanyi will begin to lay out the construction of overseas lighthouse factories, and overseas lighthouse factories will copy and promote more than 100 domestic advanced manufacturing technologies such as automatic sorting, robot welding, machining one-click clamping, automatic spraying, automatic tightening, and unmanned distribution.
For Sany itself, this is an important step to build the core competitiveness of "global manufacturing".
Xiao Hua believes that after more than 10 years of deep cultivation, the mainstream major customers in the Brazilian market have recognized the Sany brand very much, and the market share of various products continues to rise. Continuing to deepen localized manufacturing can better support the needs of market development.
Sany India's manufacturing facility in Pune is a successful example. According to the data, the manufacturing plant has invested more than 7500 million rupees, local production of more than 50 kinds of models, driving the common development of local businessmen.
Zhu Dacheng introduced: "The Indian factory is Sany's first overseas investment project, employing nearly 1,700 people, and our development strategy in India is 'make in India, for India and the world', giving full play to the advantages of local procurement costs, labor, language, geography and tariffs, radiating South Asia, the Middle East, Africa and other regions, and determined to build another Sany heavy industry in India." ”
Sany Heavy Industry's 2023 semi-annual report shows that in the first half of 2023, Sany Heavy Industry vigorously promoted the global manufacturing layout. The construction of intelligent manufacturing plants in Indonesia, India and South Africa has started, and overseas manufacturing capacity will be further improved.
The "Sany South Africa ABP" project, which started construction on November 15, is the latest move in the construction of its overseas factories. According to the plan, the base will be completed in one year, with an annual production capacity of 1,000 excavators and other construction machinery and equipment, and is expected to reach an annual production capacity of 3,000 units in the medium and long term.
Xiang Wenbo said that the BRICS countries have become an important engine of the global economy, and Sany will firmly seize this historical opportunity to achieve resource sharing, wisdom sharing, and opportunity sharing, and will strengthen cooperation with BRICS countries in the future to jointly promote local infrastructure construction and high-quality economic development.
This article was published in China Economic Weekly Issue 24, 2023).