Capital Equipment News April 2018

BAUMA CONEXPO REVIEW – EARTHMOVING EQUIPMENT

With the launch of a range of larger machines, XCMG is challenging for a bigger share of the mining equipment market.

markets. Apart from its parts centre in Johannesburg, the company has also established three other distribution outlets and spare parts centres in Windhoek, Namibia, as well as Maputo and Beira in Mozambique. This is complemented by a professional and experienced sales and aftersales team led by six Chinese sales directors and managers; eight local sales persons and nine spare parts managers and service technicians. The initiatives have already paid dividends. Last year, XCMG SA saw a big jump in its market share, with over 100 units sold in 2017 alone. The export value for XCMG via XCMG SA exceeded US$5- million last year. Dai expects to triple the 2017 sales figures this year, considering that a total of US$5-million sales deals were concluded during the first day of bauma CONEXPO AFRICA alone, where the company showcased a total of seven of its top products – comprising the XCMG QY30K5-I and QY50KA truck cranes; the XE215C and XE335C crawler excavators; the ZL50GN and LW300FN wheel loaders; as well as the 12 m cherry picker. “We are set to reach a major sales milestone this year, having seen our orders for the first quarter of 2018 surpass sales for the whole of 2017,” says Dai. Important market Speaking at bauma CONEXPO AFRICA, Shen Yu, African GM at XCMG Imports & Exports, reiterated the importance of the African market to the Chinese OEM. He says over the years, XCMG has been at the forefront of the Chinese OEM

contingent operating on the continent. “We were the first Chinese machinery provider to be involved in the development of African infrastructure. We have been in Africa for 30 years, with products operating across all the 54 countries, confirming XCMG as a well-established brand on the continent,” says Yu. XCMG has maintained its export value to Africa at over US$100-million per year between 2015 and 2017. The figure reached an all-time high of US$150- million in 2017. Yu reiterates the importance of Africa as an export destination for XCMG, saying that the continent’s GDP will reach about US$2,2-trillion, representing great opportunity for growth as investments into infrastructure development are expected to take centre stage in Africa. To date, XCMG has a total of six branches on the continent, complemented by 25 distribution outlets and 20 parts “We were the first Chinese machinery provider to be involved in the development of African infrastructure. We have been in Africa for 30 years, with products operating across all the 54 countries, confirming XCMG as a well-established brand on the continent.”

service centres. “We have, in recent years, invested in the improvement of our products, agent base, distribution channels, services portfolio and spare parts provision,” says Yu. Positive outlook Both Yu and Dai concur that South Africa remains the most important market for XCMG on the continent, and is also regarded as the springboard into the rest of southern Africa. “South Africa is the most significant market in southern Africa, and we continue working closely with XCMG SA to provide greater support to our customers,” says Yu. Dai says South Africa is the world’s largest resource engine, and is a strategic market for XCMG. Dai is encouraged by the current market conditions, especially on the back of a new political era and a rebounding mining sector. He notes that the improving economic conditions are already starting to translate into capital equipment sales. “We are positive that the South African economy will recover well in 2018. However, there is a strong need to stabilise the mining sector, and quelling all trepidations around the Mining Charter will be crucial for this sector to reach its full potential. South Africa is one of the largest resource-producing countries globally and a healthy mining sector will play a significant role in resuscitating the country’s economy,” says Dai. “We will keep on strengthening our professional after-sales team, constantly improve the response rate and continue to optimise our spare parts inventory,” concludes Dai. b

CAPITAL EQUIPMENT NEWS APRIL 2018 18