The hottest Sany Heavy Industry turns internationa

2022-10-15
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Sany Heavy Industry: turn to internationalization by relying on the "the Belt and Road"

Sany Heavy Industry: turn to internationalization by relying on the "the Belt and Road"

China Construction machinery information

from the perspective of profitability, the stability of Sany international business is more obvious. In 2015, the gross profit margin of the company in the domestic market reached 27.16%, with a year-on-year decrease of 1.45%, while the gross profit margin in the international market was 22.77%, with a year-on-year increase of 2.28%. In other words, the internationalization strategy has made Sany Heavy Industry add a bright color to the depressed industry. In the sluggish construction machinery industry, Sany Heavy Industry Group Co., Ltd. (hereinafter referred to as "Sany Heavy Industry") is looking for new space in the international market

"the proportion of overseas business in the company's overall revenue has jumped to more than 40%, and it is expected that by next year, our profitability will officially recover." at the end of August, Sany president Xiang Wenbo revealed that in the company's internal to external transformation path, the company's flagship products continue to lead the global market. "The market share of excavators has increased from about 12% in the past to about 22%, and their profitability has also increased significantly. Unaudited data show that since the beginning of this year, the profit of excavator business has reached nearly one billion yuan, which has exceeded the profit of last year."

behind this set of data is Sany's global market layout around the new initiative to visit the Internet supply and demand market. In the past few years, while the domestic industry has long been in the doldrums, Sany has walked out of a land "Silk Road" and a sea "Silk Road" through mergers and acquisitions, overseas investment and other means, with a "coherent" layout between the vertical and horizontal. In the pace of Chinese enterprises going global, It shows the characteristics of Sany Heavy Industry

once difficulties

like every construction machinery industry enterprise, Sany Heavy Industry has also been "hit hard" by the industry. Since 2008, driven by the nationwide infrastructure policy, the construction machinery industry has entered a vigorous development cycle. However, since 2010, this rapid development momentum of the industry has been replaced by nationwide overcapacity, and enterprises in the industry have started a deep reshuffle

"at present, this industry is still in a period of deep adjustment, and the downturn of the industry over the years has indeed brought us a great impact." Xiang Wenbo said frankly that in the past, concrete machinery was the company's core business. At the peak, the company's concrete machinery sales exceeded 30 billion, but now the sales scale has shrunk significantly. "The pain brought by the industry downturn to enterprises is self-evident."

the demand side shrank, and the capacity in the industry could not be adjusted in time. The whole industry entered the downturn cycle of overcapacity. Previously, overcapacity also brought great cost pressure to Sany Heavy Industry

"in 2011, Sany Heavy Industry invested more than 10 billion yuan in fixed assets, which is equivalent to twice the total fixed assets of the company before 2010," Xiang Wenbo recalled. However, since 2010, the market began to fall. This investment has brought financial costs and depreciation pressure to Sany Heavy Industry. For example, the depreciation cost of the company in a year at that time reached about 1.9 billion yuan. "If we don't invest this 10billion yuan, instead, we can reduce 10billion yuan of bank liabilities and save 10billion yuan of financial expenses," Xiang Wenbo said. In the past, when the bank loan interest rate was high, it reached 67%. What's more worrying is that the financial expenses also include depreciation and financial costs. "This pressure is very painful."

overcapacity also caused a large amount of inventory to the company, "for example, at the peak, we could sell thousands of pump trucks a year, but now we encounter great inventory pressure after national regulation."

under this pressure, the hearts of enterprise employees fluctuated, "in the past, our peak profit was 10 billion, but now we are basically making a little profit, because of overcapacity, this decline in profitability caused a great gap in the hearts of employees." Xiang Wenbo said, however, Sany's current performance is still the best in the industry. "

internationalization under the" the Belt and Road "

in this situation, Sany Heavy industry started a comprehensive transformation, and in terms of overall strategy, the company plans to rely on internationalization to get rid of excessive dependence on the domestic market with excess capacity

"our internationalization strategy mainly includes two aspects: first, relying on large enterprises and projects, that is, relying on the 'the Belt and Road' project, expanding overseas sales to 'borrow ships to go to sea'." Xiang Wenbo explained that in addition, Sany is also expanding the international market by means of direct sales overseas, such as investing in some overseas projects. "Now, the situation of these overseas projects is very good."

this layout also includes some means of mergers and acquisitions

in July 2013, Sany Heavy Industry spent US $54.8977 million to acquire Putzmeister, an international concrete giant. At that time, the domestic construction machinery industry had entered a downturn. This large-scale acquisition of Sany Heavy Industry was known as the strategic layout of "dancing with dragons and elephants" in the industry

it is this layout that makes Sany's internationalization strategy more concrete and systematic, and the internationalization of its brand image has really changed from slogan to reality

"this gives us the best layout in Germany." Recalling the merger and acquisition at that time, Xiang Wenbo felt that it had also changed the international image of Chinese capital, and also brought great returns to Sany Heavy Industry. Now Putzmeister's profitability is very good, and last year's profitability hit a new high in recent years. After the acquisition of Putzmeister, the brand position of Sany Heavy Industry was further consolidated and improved

the overseas layout of Sany Heavy Industry is consistent with China's "the Belt and Road" initiative. Xiang Wenbo said that Germany's Putzmeister has manufacturing plants in Turkey, Belgium, Spain and Russia, and sany also has industrial parks in Xinjiang, Taiyuan, Beijing and Shenyang. "Sany's layout has formed the export proportion of the line from northeast to Far East, Siberia and Mongolia to emerging countries will also be greatly increased, just like the ancient traditional Silk Road 1."

not only that, the layout of the maritime silk road is also beginning to take shape. At present, Sany Heavy Industry has set up factories in Shanghai Lingang, Zhuhai, Zhejiang, Jiangsu, etc. Xiang Wenbo introduced that in addition, the company has also invested in Indonesia, and has its Asia Pacific headquarters in Thailand, forming a complete "maritime Silk Road". This layout mode, which is a bit of a driving line, has made Sany Heavy Industry the most direct domestic beneficiary of China's "the Belt and Road" initiative

it is precisely because of the layout of the "the Belt and Road" in overseas markets that Sany chose to "go to sea together". "Compared with the past, China's national image and global influence are not comparable. China's national strength has been improved, which is a foundation for Chinese enterprises to go to sea together." Xiang Wenbo said that at present, great changes have taken place in China's national development strategy. The proposal of the "the Belt and Road" initiative provides a good political atmosphere and policy support for Chinese enterprises to visit overseas, and is conducive to promoting the implementation of some national grand strategies. This also improves the efficiency of going to sea in a group. "If you go to sea alone, you can't solve so many problems at once."

in the layout of this overseas strategy, Sany Heavy Industry directly gains from the stability of performance. The company's 2015 annual report shows that during the period, the company's international business achieved a sales revenue of 10 billion yuan, accounting for 44.2% of the company's sales revenue, with a year-on-year increase of 11.9%. Previously, the international business accounted for only about 10% of the company's overall revenue

in terms of profitability, the stability of international business is more obvious. In 2015, the gross profit margin of the company's domestic market reached 27.16%. The year-on-year decrease reached 1.45%, while the gross profit margin of the international market was 22.77%, with a year-on-year increase of 2.28%. In other words, the internationalization strategy has made Sany Heavy Industry add a bright color to the depressed industry

industrial transformation in the domestic market

but Sany's move is not to completely abandon the domestic market

"in the domestic market, we have made great efforts in internal control. In the past few years, we have focused on upgrading internal management and starting some work of process informatization." Xiang Wenbo introduced that at present, Sany Heavy Industry is cooperating with IBM in the process informatization within the company. In the context of national overcapacity, the company also accelerated its internal capacity reduction and cost reduction, reduced capacity through flattening, process re optimization, team optimization and other ways, and improved the operational efficiency of the entire organization

in the more important field of industrial transformation, Sany also extends its tentacles to the field of military industry, "this is an important direction of Sany's industrial and commercial transformation." Xiang Wenbo said that at present, Sany Heavy Industry has made some phased achievements, including signing a strategic cooperation agreement with the National University of Defense Technology on the unmanned combat platform, and establishing a joint venture with Poly Group. 1 Sorting of waste plastics, etc

with both internal and external measures, Sany's profitability is increasing. Xiang Wenbo said that at present, the company's concrete machinery has become the world's first brand, excavators have maintained the first place in the Chinese market for six consecutive years, and the market share is further improving. Its profitability has been greatly improved. It is expected that the profit of excavator products this year will exceed 1.2 billion yuan, and the profit of excavator will be four times that of last year

although the industry has experienced a "deep reshuffle", in Xiang Wenbo's view, this has not changed the future development prospects of the field of construction machinery

"in fact, it is normal for the industry to fluctuate according to the cycle." Xiang Wenbo believes that the construction machinery industry is a sunrise industry, which has experienced many economic crises. Previously, the construction of large-scale engineering infrastructure in the United States was basically completed as early as the Roosevelt era. However, due to the maintenance of a large number of infrastructure, the United States is still the largest market for construction machinery consumption, so construction machinery is a sunrise industry, and in the future, no matter how developed the Internet will be in the future, The work of infrastructure cannot be completed by computer, and it must be constructed, maintained and maintained by construction machinery

in addition, there is a huge market potential in the field of construction machinery. "China's infrastructure construction may have experienced a peak period and has been basically completed." Xiang Wenbo said, but looking south, South America, Africa, Southeast Asia and the countries that we now propose the "the Belt and Road" are still very backward in infrastructure. In the future, they will also need urbanization and modernization. In the future, they will need a large number of construction machinery, which contains huge market potential

although the current Chinese market is facing overcapacity, China's construction machinery capacity is not backward, but advanced. "Because in the past 30 years in the world, China's greatest achievement should be infrastructure construction or urbanization. The most technologically advanced projects are all in China, such as the Qinghai Tibet railway and various high-rise high-speed railways, which are constructed by construction machinery." Xiang Wenbo said that China's construction machinery industry has global competitiveness and is a high-tech industry. In China's equipment manufacturing industry, the construction machinery industry may be the only industry qualified to fully replace imports with domestic products. When

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