Latest news with #SanyHeavyIndustry
CNA
26-05-2025
- Business
- CNA
Commentary: Chinese EV trucks will build the cities of the future
SYDNEY: If you think the world is starting to get used to surging sales of Chinese-made electric cars, the next wave of exports is going to be bigger, and more powerful. That's because the construction machinery giants that grew fat off the country's property bubble are looking for new markets to offset the downturn at home. Combined with looming electrification, the effects could be quite as dramatic as the other Made-in-China export booms which have so troubled trading partners. Consider Sany Heavy Industry. In 2020, 83 per cent of its business was selling excavators, cranes, concrete mixers and the like to domestic developers. In the space of just four years, China's property crash has caused its turnover in that market to shrink by two-thirds. Overseas markets now account for more than 60 per cent of revenue. It's hoping to raise US$1.5 billion via a Hong Kong initial public offering to help it double international sales to 100 billion yuan (US$14 billion), the South China Morning Post reported this month. Sany isn't alone. Its local rivals XCMG Construction Machinery, Zoomlion Heavy Industry Science & Technology, and Guangxi LiuGong Machinery are all facing the same collapse of activity on the home front, where housing starts in the first four months of 2025 fell to their lowest level since 2003. That's left dismal returns on all the assets they built to service a market that's since disappeared – below 5 per cent, less than half what Caterpillar manages and well below the 7.7 per cent at Komatsu. EXPORTS AND ELECTRIFICATION The best way out of this problem is to find export markets to get the production lines for all those diggers, dozers, lifters and trucks humming again. Zoomlion's international sales have followed Sany's in becoming the largest element of its revenue, and XCMG and LiuGong aren't far behind. There's plenty of work to go around. In the Persian Gulf, governments are using the windfall from the oil boom of the early 2020s to build a swath of major infrastructure projects, from the Middle East's first Walt Disney theme park in Abu Dhabi to a new international airport in Riyadh and a US$22 billion five-year infrastructure plan for Qatar. Construction markets are also booming across South and Southeast Asia and in parts of Africa. China's export market share in major categories of work vehicles has soared in recent years. As with passenger cars, electrification offers a potent route for further disruption. Batteries are often considered an ill fit for construction machinery, which has extreme power needs that diesel is particularly well-placed to deliver. But that's changing as lithium-ion cell-makers build cheaper and longer-lasting power packs that can often keep running as long as an eight-hour work day, according to IDTechX, a consultancy. Electric construction equipment sales will grow at 21 per cent annually up to 2044, when they'll hit US$126 billion, IDTechX predicted last year. Chinese manufacturers have an advantage here. Local battery-makers CATL and BYD are market leaders in LFP, the cathode chemistry that's likely to be best-suited to site vehicles, thanks to its stability and low costs. Already, local construction machinery manufacturers produce about two-thirds of the electric bucket loader models on the market. RAISING THE DRAWBRIDGE INSTEAD OF COMPETING Circumspect governments should be looking at ways to outcompete this shift. Instead, they're raising the drawbridge. The European Union last month set tariffs as high as 67 per cent on Chinese construction machinery, while the UK has more recently imposed duties of more than 30 per cent on excavators made by Sany, Liugong and XCMG. The Indian joint venture between Tata Motors and Hitachi Construction Machinery last year called on New Delhi to raise levies against imported Chinese products, saying they'd already grabbed 22 per cent of the market. Things are even worse in the US, where the Trump administration is busy unpicking the heavy-duty vehicle emission standards introduced by former President Joe Biden. That removes much of the incentive for US-exposed manufacturers such as Caterpillar, Komatsu, Volvo and Deere & Co to innovate and compete with the coming onslaught. Work vehicles have tended to fly below the radar in discussions of urban emissions, but their vast size and power requirements give them a disproportionate share of engine pollution. China's 10 million construction machines emit more particulates than its 417 million road vehicles, according to the International Council on Clean Transportation. With low-emission zones spreading across cities worldwide and older diesel vehicles increasingly restricted on the roads of major cities such as London, Paris and Madrid, construction machinery is increasingly going to find itself in the crosshairs as one of the biggest contributors to urban pollution.
Business Times
26-05-2025
- Automotive
- Business Times
Chinese EV trucks will build the cities of the future
IF YOU think the world is starting to get used to surging sales of Chinese-made electric cars, the next wave of exports is going to be bigger and more powerful. That's because the construction machinery giants that grew fat off the country's property bubble are looking for new markets to offset the downturn at home. Combined with looming electrification, the effects could be quite as dramatic as the other made-in-China export booms which have so troubled trading partners. Consider Sany Heavy Industry. In 2020, 83 per cent of its business was selling excavators, cranes, concrete mixers and the like to domestic developers. In the space of just four years, China's property crash has caused its turnover in that market to shrink by two-thirds. Overseas markets now account for more than 60 per cent of its US revenue. It's hoping to raise US$1.5 billion via a Hong Kong initial public offering to help it double international sales to 100 billion yuan (S$17.8 billion), the South China Morning Post reported this month. Sany isn't alone. Its local rivals XCMG Construction Machinery, Zoomlion Heavy Industry Science & Technology, and Guangxi LiuGong Machinery are all facing the same collapse of activity on the home front, where housing starts in the first four months of 2025 fell to their lowest level since 2003. That's left dismal returns on all the assets they built to service a market that's since disappeared – below 5 per cent, less than half what Caterpillar Inc manages and well below the 7.7 per cent at Komatsu. The best way out of this problem is to find export markets to get the production lines for all those diggers, dozers, lifters and trucks humming again. Zoomlion's international sales have followed Sany's in becoming the largest element of its revenue, and XCMG and LiuGong aren't far behind. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up There's plenty of work to go around. In the Persian Gulf, governments are using the windfall from the oil boom of the early 2020s to build a swathe of major infrastructure projects, from the Middle East's first Disney theme park in Abu Dhabi to a new international airport in Riyadh and a US$22 billion, five-year infrastructure plan for Qatar. Construction markets are also booming across South and South-east Asia and in parts of Africa. China's export market share in major categories of work vehicles has soared in recent years. As with passenger cars, electrification offers a potent route for further disruption. Batteries are often considered an ill fit for construction machinery, which has extreme power needs that diesel is particularly well-placed to deliver. But that's changing as lithium-ion cell-makers build cheaper and longer-lasting power packs that can often keep running as long as an eight-hour work day, according to IDTechX, a consultancy. Electric construction equipment sales will grow at 21 per cent annually up to 2044, when they'll hit US$126 billion, IDTechX predicted last year. Chinese manufacturers have an advantage here. Local battery-makers Contemporary Amperex Technology and BYD are market leaders in lithium iron phosphate, the cathode chemistry that's likely to be best-suited to site vehicles, thanks to its stability and low costs. Already, local construction machinery manufacturers produce about two-thirds of the electric bucket loader models on the market. Circumspect governments should be looking at ways to outcompete this shift. Instead, they're raising the drawbridge. The European Union last month set tariffs as high as 67 per cent on Chinese construction machinery, while the UK has more recently imposed duties of more than 30 per cent on excavators made by Sany, Liugong and XCMG. The Indian joint venture between Tata Motors and Hitachi Construction Machinery last year called on New Delhi to raise levies against imported Chinese products, saying they had already grabbed 22 per cent of the market. Things are even worse in the US, where the Trump administration is busy unpicking the heavy-duty vehicle emission standards introduced by former President Joe Biden. That removes much of the incentive for US-exposed manufacturers such as Caterpillar, Komatsu, Volvo and Deere & Co to innovate and compete with the coming onslaught. Work vehicles have tended to fly below the radar in discussions of urban emissions, but their vast size and power requirements give them a disproportionate share of engine pollution. China's 10 million construction machines emit more particulates than its 417 million road vehicles, according to the International Council on Clean Transportation. With low-emission zones spreading across cities worldwide and older diesel vehicles increasingly restricted on the roads of major cities such as London, Paris and Madrid, construction machinery is increasingly going to find itself in the crosshairs as one of the biggest contributors to urban pollution. When that happens, Chinese manufacturers will have a solution ready to be driven from their parking lots. Will their incumbent overseas competitors be ready, too? BLOOMBERG
South China Morning Post
11-05-2025
- Business
- South China Morning Post
Heavy equipment maker Sany eyes doubling of overseas revenue after Hong Kong IPO
Sany Heavy Industry, one of China's largest heavy equipment manufacturers, plans to use the sum of up to US$1.5 billion that it could raise in a proposed Hong Kong initial public offering (IPO) to support global expansion, despite ongoing trade tensions between China and the US, according to an executive. Advertisement The Shanghai-listed company will use the capital to expand its sales and service networks outside China, Jiang Qingbin, vice-president of parent company Sany Group told the Post on Friday. The company, which filed for the IPO in February , is seeing strong demand from developing countries in Asia-Pacific, South America and Africa due to infrastructure development, he added. Sany aims to more than double its overseas revenue to 100 billion yuan (US$14 billion) in the next three years, Jiang said. Revenue from overseas markets in 2024 rose 12 per cent year on year to 48.51 billion yuan, representing nearly 65 per cent of Sany total revenue that year, it reported last month. '[After the IPO], we will continue to promote globalisation, but globalisation is not about building factories,' Jiang said. 'It's mainly about people – building localised marketing channels is probably the most important thing.' People walk past cranes made by Sany at a factory in Beijing in October 2021. Photo: AFP Sany is one of more than 100 companies, mostly from China, that are lining up for Hong Kong share listings this year amid improved market sentiment and a possibly narrow listing window amid escalating tariff tensions. Advertisement Founded in 1989, Sany manufactures equipment for concrete transport, excavation, lifting, road construction, and pile-driving. It was China's largest exporter of excavators and concrete mixers last year, according to Chinese customs data.
Yahoo
18-02-2025
- Business
- Yahoo
China's Sany Heavy Industry aims to raise up to $1.5 billion in planned Hong Kong listing, sources say
By Kane Wu HONG KONG (Reuters) -Chinese manufacturer Sany Heavy Industry is planning a listing in Hong Kong that could raise up to $1.5 billion, two people familiar with the matter said on Tuesday. The people could not be named as they were discussing confidential information. Sany did not immediately respond to a request for comment. Sany Heavy Industry has tapped Bank of America, JPMorgan and CITIC Securities to work on the potential float, the people said. The listing could happen in the second half of this year, one of the those added. Sany Heavy Industry is listed in Shanghai and has a market capitalisation of about $20 billion. JPMorgan and CITIC declined to comment while Bank of America did not immediately respond to a request for comment. Preparations for the listing are just starting and terms of the offering could still change, cautioned the sources Sany Heavy Industry is primarily engaged in equipment manufacturing, with products including concrete machinery, excavating machinery, lifting machinery, road construction machinery, and pile-driving machinery. The company reported a 96% year-on-year growth in net profit for the third quarter of 2024. Net profit amounted to 4.87 billion yuan for the first nine months of 2024, up 20% year-on-year, according to its latest financial disclosure. Founded more than three decades ago in Central China's Hunan province, Sany Heavy Industry now has operations and factories in the U.S., Europe, India, Brazil and Germany, as well as five manufacturing clusters in China, its website showed. Sany Heavy Industry had previously attempted to list in Hong Kong in 2011 but the offering was delayed due to market conditions, according to Reuters reports at the time.
Reuters
18-02-2025
- Business
- Reuters
China's Sany aims to raise up to $1.5 billion in potential Hong Kong listing, sources say
SYDNEY, Feb 18 (Reuters) - Chinese manufacturer Sany Heavy Industry ( opens new tab is planning a listing in Hong Kong that could raise up to $1.5 billion, two people familiar with the matter said on Tuesday. The people could not be named as they were discussing confidential information. Sany did not immediately respond to a request for comment.
