Internationalization is the third starting point for SANY to run for further business development. On this way, international expositions have been providing show stages for SANY, developing SANY international reputation and offering SANY opportunities for learning and improving.
Improving in Comparison
In BAUMA 2010, SANY attracts more attention than that in the last two Expos. Many Germany businessmen are trying to know more about SANY in details from product itself and various data. What attracts them is not only the innovation efforts of SANY, but also this private enterprise itself far in Hunan Province of China which invested 100 million euros in Germany to station itself there.
At the beginning of last year, witnessed by both prime ministers of China and Germany, SANY signed an agreement with the governor of North Rhine-Westphalia, through which100 million euros was invested to establish a SANY R&D and manufacture base in Germany. This has been the largest industrial investment into Europe from China.
So far, this SANY project in Germany has been in operation for one year. As described by Mr.He Dongdong, the general manager of SANY subsidiary in Germany, this project is progressing smoothly and a localized management team has been organized. This investment has created more jobs for Germany and it has not only improved the reputation of SANY brand in Germany, but also promoted the image of brands made-in-China.
Germany is one of the top powerful countries in machinery manufacturing field, and the products made in Germany enjoy great popularity due to such advantages as high precision, excellent quality and good performance. In BAUMA this year, through joining in on-site product evaluation and visiting famous enterprises, SANY leaders have identified more clearly SANY's disadvantages and advantages in the comparison.
They expressed that SANY Germany Industrial Park would base itself on local market demands and lay emphasis on the communication with users in the design and manufacture processes of products, in order to make the production more targeted and the after-sales service more satisfying. In addition to performance improvement, SANY also focuses on safety, environmental protection and human orientation in design, to make the products following the developing requirements on global green and low carbon economy.
When SANY products are made by China and made in Germany, SANY products will have more international competitive power.
Stepping Further in International Market
It is learned that besides this BAUMA, every year SANY has taken part in many other world expositions held in Las Vegas, France, Moscow and Canada with its star products.
In 2009, SANY took part in India Engineering Mechanical Exposition and exposed the first batch of products made locally in SANY India Industrial Park. Thanks to excellent adaptability of these locally developed products, they got popular approval in India market. In January this year, 4 SANY truck mixers manufactured in SANY India Industrial Park was exported to Sri Lanka, and it was the first time for this industrial park to export its truck mixers.
SANY is stepping further and further into international market.
By now, SANY has set up 30 overseas subsidiaries, its business has covered 150 countries and its products have spread over 110 countries and regions. Twenty products from five categories including stationary concrete pump, truck-mounted concrete pump, rotary drilling rig, excavator and motor grader have been awarded with CE certificates by the third party EU, a permit for accessing european market.
SANY has established 15 logistics centers, and the logistics system and service supporting system, centering on spare parts warehouses, have been formed. Over 1300 sales and service personnel are working abroad on providing top-level products and service to the customers all over the world, and nearly 300 foreign personnel have joined in the internationalization construction of SANY.
The overseas investment plans of SANY Heavy Industry are being carried out step by step. Till now, SANY India Industrial Park has realized mass production; the construction of America Industrial Park is in progress; the planning and design of Germany Industrial park has been completed.
It is statistically shown that the total investment abroad by Hunan enterprises reached USD 1.05 billion in 2009, standing first on the list of China. Distinctive from other Chinese engineering machinery enterprises, SANY took the way of direct investment abroad. Those huge investments lead the enterprises of Hunan and even of China to walk further into overseas markets.
Moreover, SANY is playing more leading role in the export of Hunan Province, accounting for 46% of provincial export volume last year, 4.8% higher than that of the same period a year earlier. In 2009, contrasting with the severe decrease of global machinery export, SANY still kept on showing its standout points. On December 4, 2009, SANY signed a sales contract of RMB 0.44 billion yuan with Indian Sunwei Co., Ltd., a single export order involving the largest amount in engineering mechanical industry since the Financial Crisis.
Xiang Wenbo, the president of SANY Heavy Industry, said that the Financial Crisis promotes the adjustment of global industrial structure; since products marked with Made in China have been at the end of global industrial chain for so long, it is a challenge for Chinese enterprises to invest abroad.
The globalization of heavy industries including auto, machinery manufacture, complete equipment and precision machinery is a new development orientation of China's industry; however, Chinese enterprises still lack management abilities for international business. Based on its own practice and demands, SANY has selected the safer way of direct investment rather than merger.
SANY will take Germany, a world manufacturing highland, as a resources integration platform and make use of such internationalized resources for its internationalization strategy.
