China’s leading construction equipment maker and World’s 5th largest construction Machinery Company, Xuzhou Construction Machinery Group (XCMG) China has announced on Thursday that it will invest USD 150 million to build its first manufacturing plant in India in a partnership with SCHWING Stetter India (a concrete equipment manufacturing company).
From the new manufacturing plant, the company would produce construction and material handling machines. With this facility, the company eyes substantial market share in India and also plans to export neighboring countries.
Commenting on this investment, Mr. Wang Min, Group Chairman of XCMG China said, “We have been eyeing the robust Indian market for the past few years, because of the vast potential it possesses. Moreover, our strategic partnership with Schwing Stetter who is already a pioneer in the Indian construction space is extremely valuable to us at this key juncture. We are sure that our products will reach the right audience in the Indian market through this partnership.”
XCMG China planning to produce its ‘Made in India’ products within a time frame of one year, however, the company is yet to finalise the location to set up the manufacturing plant. It is looking for the place near Chennai.
The strong management capabilities of SCHWING Stetter will help XCMG to meet their growth targets and expectations in the Indian market as well, said the company in a joint-statement.
Mr. Anand Sundaresan, Chairman, Schwing Stetter Sales & Services India said, “We are happy to be associated with XCMG to grow our businesses in the Indian market. Aligning with the Make-in-India initiative, our new facility will now manufacture Construction equipment and material handling products, thus enabling us to widen our product range. Our extensive reach across India, will help us build brand XCMG in the country.”
Soon a technical team from China will visit India to explore the products which can be made from XCMG’s new facility in India.
The move has inspired by the current boom in Indian construction equipment industry. The industry has performed well in 2016 after a gap of over four years. Recently, Mr. Sundaresan told EOS in an interview that Indian Construction Equipment Industry is in revival stage registering a growth of over 30% in the first half of 2016-17 compared to the same period last year.
Currently, in association with Schwing Stetter India, XCMG sells equipment like Excavators, Motor Graders, and Wheel Loaders in India.
The world’s 5th largest construction machinery company offers a combination of high quality construction machinery products and services and provides the customers with all-around systematic solutions. The products include Excavators, Loaders, Mining equipment, Road Machinery, Bridge construction equipment, Concrete machinery, Heavy-duty trucks, Forklift Truck, Cranes and different other products.
XCMG products are being exported to 159 countries and regions around the world, which makes it China’s one of the biggest construction machinery exporters.
SCHWING Stetter (India) manufactures concrete batching plants, concrete mixers, concrete pumps, concrete placing booms, tower cranes, self-loading mixers and recycling plants.
SCHWING Stetter India is a 100% subsidiary of $1-Billion SCHWING Group based in Germany, which is a part of XCMG group.
Source: Information has been obtained from XCMG & SCHWING Stetter India