Xugong Construction Machinery Co Ltd (XCMG) will lock up the overseas market as the core of its development strategy.

Wang Min, chairman of XCMG

"In a few years, we’ll have 20 more overseas dealers and build five more parts centers in addition to the assembly factories we have now in Brazil and Poland,” XCMG Chairman Wang Min said.

XCMG, China’s largest construction machinery maker, operates in over 130 countries and regions with over 60 dealers.

XCMG is most notable for its construction lifting and compaction equipment. The company’s partnerships with Caterpillar Inc, ThyssenKrupp and ArvinMeritor have helped it reach international standards. Twenty percent of its products are on par with the world’s most technologically advanced.

The company enjoyed an increase of 30 percent in sales growth during 2010 and posted an annual revenue of 66 billion yuan. The company had a successful Eleventh Five-Year period, which it calls the “the Xugong Miracle”, because it grew 10 billion yuan annually and tax tripled four years in a row.

Since its founding 20 years ago, the company’s revenue has grown 170 times, and its exports multiplied by 124. Its main construction machinery range and basic parts have dominated the domestic market. And its excavators, pavers and concrete pumping machinery are rapidly catching up.

According to KHL’s journal “International Construction”, XCMG ranks in the world’s top 10 construction machinery makers. It is third in crane makers. KHL Group is “the leading supplier of international construction information in the world,” according to its website.

"We will not contend with our domestic achievements. We also want to make ourselves a conglomerate on the global stage”, Wangmin said.

He emphasised innovation as the key to achieving the company’s ambitions. ”Only when we have the cutting edge technology will we be able to steer the future,” he said.

Already a top innovator in the industry with eleven award-winning technologies, the company is planning on acquiring research and development resources from overseas to further strengthen its upper hand.

The company invested 5 billion yuan last year, which will soon bring them a world-class crane-making base. The company is shooting for 100 billion yuan in revenue for 2015. It also has a goal to export 3 billion in the same time period. Officials hope the firm’s overall strength will reach the world’s top five.

By Ju Chuanjiang and Liang Chen (China Daily Shandong Bureau)

Editor: Li Jing