Big 5: XCMG becomes world's top crane supplier

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Chinese crane and construction equipment manufacturer XCMG is now the number-one supplier of cranes in the world, reveals its area sales manager Owen Tang.

XCMG is launching a range of new machines for the Middle East market at PMV Live, including a grader, the 50-2K truck crane and the ZL 505 wheel loader.

According to Tang, the machines have been designed to handle the arduous conditions of working in the Middle East. “The 50-2K has a new Euro III engine and our XCMG-designed chassis. We are always making changes to our machines to make them better.”

Tang, a five-year veteran with the company, explained that testing, research and development is conducted by engineers trained at its Xuzhou-based institute.

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He argues that the perception that Chinese companies are only interested in sales is changing. “The institution helps us to know that we have good quality machines,” he said.

“We now have a good parts and service set-up in the region. Maybe Chinese companies were not so strong in this area in the beginning, but now, once they see our machines, they know it is good quality.”

The recent financial crisis has affected even Chinese manufacturers, despite their thriving domestic market. However, Tang said the company is ending 2011 feeling confident that the global market, and the Middle East in particular, is starting to heat up again.

“At one point we had 100 cranes a day coming out of factory. Three years ago we had 50 cranes here [in Dubai],” he revealed. “Obviously that changed during the financial crisis. But now this business is starting to become good again. There is still growth. This is why we are back here after three years.”

Much of that growth in the region is coming from demand in Saudi Arabia for machines that can work in the energy and infrastructure sectors. Tang also reveals that Iraq and Iran are showing promise. He also describes the UAE market as potentially “huge”, although the company is currently making progress in Qatar, a country preparing to host the FIFA Football World Cup in 2022.

“A Chinese construction company recently won the contract to build the new port in Qatar, and we will get work off of that. We have a good relationship with Chinese contractors; they know our machines and how we work.”

XCMG recently delayed its planned IPO on the Hong Kong stock Exchange but, according to Tang, the company is still well on course to reach its target of breaking into the world’s top three manufacturers list. “We are already the biggest crane manufacturer in the world.”

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