In 2022, Sany Heavy Industry will be in a leading position in the supply of 40-90 ton excavators in the Russian Federation. At the same time, the Russian representative office began importing mining excavators and dump trucks to the Russian Federation. We described in the material how the company successfully entered the field of heavy machinery and what achievements it has made
In November 2023, at an online conference on the mining equipment market held in Russia, Anton Nikolaev, the Development Director of Sany Heavy Industry's official representative office in Russia, provided supply statistics for excavators and dump trucks and expressed his views on the industry situation.
As one of the largest medium-sized specialized equipment manufacturers in the world market, Sany Heavy Industry has been actively developing towards heavy machinery. The Chinese domestic market needs this. The foreign market also needs this type of car, "the spokesperson commented.
By 2022, the Russian quarry equipment market will be consolidated
After the 2022 Russia Ukraine incident, Sany Heavy Industry significantly increased the import volume of mining equipment from the Russian Federation
After many foreign brands, their representative offices, and distributors left the Russian market, domestic enterprises were forced to turn to friendly countries, including China. Anton Nikolaev vividly described the competitive situation in the quarry equipment market a few years ago: "It was very difficult to enter the Russian market before 2022 because from the perspective of competitors, everything here was very solid. The strongest manufacturers - such as Caterpillar, Hitachi, Komatsu, Liebherr - firmly controlled the mining market. But with the start of SVO (Special Military Operations), the Russian market began to release, and this vacuum began to drag us in
The vast product portfolio enables the company to quickly meet customer demand for equipment, and this demand is constantly growing. The increase in supply has made Sany Heavy Industry the leader in the number of imported large excavators (40-90 tons) in 2022: a total of 218 equipment were imported, with a market share of slightly over 20%. In the first eight months of 2023, this proportion has increased to 29%. Therefore, the company is confident in maintaining a one-third share of the Russian excavator market.
As for mining grade machines, Sany Heavy Industry recently started producing equipment weighing over 100 tons: until 2017, the heaviest machine in the manufacturer's production line was a 98 ton machine. The 125-290 ton model is currently being actively sold. The 400 ton and 800 ton machines are currently in the design phase.
When talking about the delivery volume of such equipment, the speaker cited the number of 129 mining excavators imported from the Russian Federation. In 2022, the leading position in supply will be occupied by the Japanese brand Komatsu. Anton Nikolaev analyzed the reasons why this brand, which left the Russian market after the launch of SVO, remained in the top three in the past two years. He commented, "I think these are all planned deliveries. As in the mining industry, all large heavy machinery is ordered in advance (one year, or possibly one and a half to two years in advance), Komatsu is likely to order those machines before delivery in 2022. This also applies to brands such as Hitachi, Hyundai, and Liebherr
If we talk about the performance of Sany Heavy Industry, we will notice that the manufacturer has been able to significantly increase its import volume: a year ago, Sany Heavy Industry only imported one heavy-duty excavator (weighing 125 tons), but in the eight months of 2023, it has already imported 48 units (including 21-125 ton machines).
Trend of replacement of sanctioned components
Sany Heavy Industry's product portfolio includes multiple series of mining dump trucks. These are rigid frame two axle, off-road three axle, and articulated dump trucks. When analyzing supply statistics, A. Nikolaev pointed out positive developments in the field: 10 cars were imported in 2022, and 28 cars were imported in the first 8 months of 2023.
In addition, it is worth noting that we are mainly discussing rigid frame dump 150 ton trucks. Why is this? By 2022, the components equipped on light-duty rigid frame vehicles (45 tons, 55 tons, and 95 tons) have been included in the sanctions list. The transition to replacing Chinese components (Cummins engines replaced by Weichai, Allison transmissions replaced by Fast gears) takes time. So, devices with new components are currently being tested within China.
Electric dump trucks, excavators, and drones
In response to the increasingly environmentally friendly trend of global manufacturing equipment, Sany Heavy Industry has launched the off-road electric mining dump trucks SKT90E and SKT105E, which are currently operating in China. In the field of electric excavators, the 20 ton model is currently rolling down from the factory's conveyor belt. But in the future, manufacturers plan to produce heavier machines, including mining machines. One of the latest developments of the company is the patented autopilot. Nowadays, unmanned mining trucks and excavators are being tested and operated on Huawei's 5G network. It is currently unclear when the two vehicles will be able to operate together in autonomous driving mode. But work in this direction is already underway.
Focus on expanding warehouses and developing service networks
The inventory of parts in the company warehouse is equivalent to 80-90% of the required quantity
We certainly understand that sales can only be achieved by providing the best possible spare parts, as well as thoughtful service and technical support, "emphasized Anton Nikolaev. Therefore, the representative office pays special attention to the development of service centers, increasing the number and capacity of warehouses. Therefore, Chita's spare parts warehouse has expanded and plans to at least double the warehouse area in Moscow (currently 10000 square meters).
According to company representatives, the inventory of parts in the warehouse is equivalent to 80-90% of the required quantity. We plan to transport components through the Manzhouli Houbaijiarsk land border crossing every one to two months. But it can also be shipped by sea: from Shanghai, Qingdao, Lianyungang, we transport to Far Eastern ports (Vladivostok, in rare cases - Nakhodka). Urgent orders arrive by air freight, usually within 5 days.
Waiting for the increase in the return fee of imported mining dump trucks
When discussing how the future industry situation will develop, Anton Nikolaev stated that the Russian Federation government will be very cautious in increasing the recycling and collection of heavy excavators, but for mining dump trucks, it is likely to take more proactive actions. This is because the Russian Federation has increased its recycling fees to support domestic producers. Russia does not produce heavy excavators. As for mining dump trucks, the BelAZ vehicles of the Belarusian Union are now on the market, so we expect a significant increase in the recycling rate of such vehicles, "the spokesperson concluded.