XCMG: Globalizing China’s Manufacturing Industry

“The three words, investment, integration and innovation, both sum up and forecast XCMG’s experience in Europe. We’re promoting investment with a long-term view. We hope to establish a stable enterprise in Europe and contribute to local social harmony and development. We want to integrate into Europe and endeavor to promote integration between XCMG and its European counterparts, between Chinese and European engineers and between the global market and European technology. We want to innovate and cooperate with our European counterparts to realize advances in strategy, management, products, technology and sourcing the value chain, so that we can continue to provide quality products at reasonable prices to the global market,” Li Suoyun, vice general manager of XCMG and general manager of XCMG Europe Co., Ltd., said at the opening of XCMG Europe.

Based on such objectives, XCMG was accredited and won high praise from the local government for its outstanding performance last year. In 2013, it received the NRW.INVEST Award, presented by the economic development agency of Germany’s North Rhine-Westphalia State, becoming the first Chinese enterprise to win this honor.

Recently, XCMG Europe Co., Ltd., on behalf of all of its European subsidiaries, officially registered as a member of the Germany-China Business Council, which was established during Premier Li Keqiang’s visit to Germany from May 25 to 27, 2013. The business council serves as a bond to strengthen the strategic partnership between China and Germany. XCMG’s membership of the business council is conducive to the company’s internationalization drive and the enhancement of its international competitiveness.

Next Stop Brazil

On June 6, 2014, XCMG’s Brazilian manufacturing plant, with an investment of US $200 million, was officially put into operation in Pouso Alegre, Minas Gerais State, Brazil. This is XCMG’s largest overseas investment project.

On June 6, 2014, the opening ceremony for XCMG's Brazilian branch took place in Pouso Alegre City, Minas Gerais State.

The person in charge of XCMG’s Brazil factory project received a lot of support from the mayor of Pouso Alegre. He even provided one of his office rooms to XCMG staff as working space and arranged for them to be picked up and taken home every day. The mayor’s secretary-general, who assisted XCMG staff in solving any teething problems, went on to become a franchiser of XCMG and achieved very good results. He said that he values the XCMG brand and expertise and sees a bright future for his cooperation with XCMG.

XCMG’s Brazil factory raised the company’s profile through core elements such as marketing, after-sales service, parts supply and credit financing, bringing substantial economic benefits to the local society. To elevate the percentage of local procurement and manufacture to 60 percent and so be eligible for the low-interest financing policy of the FINAME program (which provides capital financing to companies located in Brazil for the acquisition or leasing of new machinery and equipment), XCMG has brought new business opportunities to local suppliers in terms of processing, outsourcing and purchasing. Furthermore, it has enhanced local potential for manufacturing, quality, management and efficiency of goods supply.

On March 7, 2014 Antonio Anastasia, governor of the State of Minas Gerais, paid a visit to XCMG. He said that the company’s construction and investment in Minas Gerais had boosted the development of Pouso Alegre and other regions, and served as a paradigm for other Chinese enterprises that seek development in Brazil. He also said XCMG’s construction and expansion in the Brazilian market substantially promoted Brazil’s infrastructure construction. He pledged that the state government would treat XCMG as a local enterprise and unremittingly support XCMG to achieve further development in Brazil.

Chairman Wang Min confirmed that XCMG’s strategic goal is to be listed among the top three heavyweights in the global construction machinery industry and become a world first-rate enterprise. In the process of its internationalization, XCMG’s Brazil factory will play a very important role. As an enterprise with a great sense of responsibility and mission, XCMG will endeavor to build its Brazilian plant into a successful international model and a platform to boost economic development in the local region, so promoting the China-Brazil friendship as well as Brazil’s economic and social development.