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While the world recovers from a cold winter in March, ZOOMLION’s overseas business is also on a path back to recovery.
On March 5, a contract of one 2000-ton crawler crane was signed between the equipment manufacturing leader ZOOMLION and its Turkish client. In the past, there were only a few dominant players in this high-end market, mostly from Europe and America. ZOOMLION’s recent order not only sets a new record on the tonnage of such equipment being exported from China to abroad, but also shows the expanded impact and enhanced market competitiveness of Chinese manufacturers.
△The Signing Ceremony
Crawler cranes are known for their complex structures and technology intensive nature, thus, the suppliers in the high-end market are mostly from Europe and America. A decade ago, all large-tonnage crawlers used in China were imported, because a solid barrier of intellectual property rights was built.
After years of independent R&D and innovation, ZOOMLION has developed a series of large-tonnage crawler cranes, and many of them were helping the development of wind power, nuclear power and petrochemicals. It’s played an important role in national-level project constructions, and has won the top market share in China. With the recent order, we are no longer just importers, we are also an exporter of large-tonnage products.
Innovation has not only helped turn “Made in China” into "go global", but also helped the construction machinery companies achieve new milestones.
We are told that the new order includes 2,000-ton and 800-ton crawler cranes and amounts to 100 million yuan. The order set a new record for the export value of a single crawler crane, showing a powerful signal of the recovery of the overseas market for construction machinery. In Q1, 2021, the construction machinery industry continued to grow at a fast pace as the domestic and overseas markets continued to recover. Leading companies represented by ZOOMLION all announced good news: On February 18, ZOOMLION shipped items worth 1.1 billion abroad, which is a good start to the New Year of the Ox. In the “Belt and Road” countries, in the face of the epidemic challenge, ZOOMLION's tower cranes and cranes are still popular, and they have participated in the construction of many major projects.
△ZOOMLION’s ZCC9800W Crawler Crane Was Used In Turbine Installation In Turkey In 2020
In 2020, ZOOMLION enjoyed the best performance and operation in company history, with a net profit of 7 to 7.5 billion yuan, a YoY increase of 60.13%-71.57%, continuing to lead the industry with an even faster growth in pace.
We learned from a person in charge that in 2021, ZOOMLION will continue its transformation to be a more intelligent, digital, and green enterprise, and will optimize and adjust the business profile and global resource allocation and drive enterprises to achieve better development with the new opening-up as both domestic and international markets start to recover. The company's business operation is good, and the production and sales of all products are booming. In January this year, the shipment volume of each business unit hit a record high, and the overseas market business has increased several times.
Experts say, with less cyclical changes of the industry and unlike change of market share of leading manufacturers, the leading manufacturers are likely to get higher valuations when their performance is predictable. In the domestic market, demands of new equipment are high as old ones are phased out, plus the constructions of Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta Economic Zone and the "construction of new types of infrastructure, and development of next-generation information networks" are ongoing. The orders are also expected to recover in 2021 in the overseas market after vaccination is given to more people, the pandemic is under better control, and more stimulus plans come out. The construction machinery industry will continue to maintain strong momentum in the future.