On November 15th, the "Sany South Africa Headquarters Base" project broke ground in Johannesburg, South Africa. With an investment of 300 million rand, the project will become Sany's regional manufacturing center, logistics center and talent center upon completion.
In early December, a group of employees from India were receiving training on the operation of road machinery at Sany's training base in Loudi, Hunan Province.
Not long ago, the project of localizing the production of Sany road machinery in India was successfully completed and the products were rolled off the production line.
These are Sany Group's rapid responses to seize the opportunities in overseas markets after the expansion of the BRICS countries.
On August 24, 2023, the BRICS countries decided to invite Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates to become full members of the BRICS cooperation mechanism starting from January 1, 2024. The number of members of the BRICS cooperation mechanism has increased from 5 to 11.
"As a leading Chinese construction machinery manufacturer, Sany Group actively practices and participates in this significant historical process of BRICS cooperation, viewing the BRICS market as an unmissable historical opportunity for Sany's development," said Xiang Wenbo, the Party Secretary, Executive Chairman and Chairman of Sany Heavy Industry, at the first BRICS Innovation Base Entrepreneurs Forum on November 17th, in his capacity as the Vice Chairman of the BRICS Innovation Base Industry Innovation Alliance.
Data shows that Sany Group has achieved cumulative sales of over 70 billion yuan in Brazil, Russia, India, South Africa and the six countries invited to join the BRICS cooperation mechanism. Among them, in 2022, it completed the sale of 14,500 units of equipment with sales exceeding 13 billion yuan. In the first three quarters of 2023, it achieved sales of over 14 billion yuan, accounting for approximately 40% of Sany Group's overall overseas sales during the same period.
Taking the first step in the BRICS countries in 2002 was also the first step of Sany's globalization.
In 2001, the concept of the BRICS countries was born. After this expansion, the population of the BRICS countries as a proportion of the world's total rose from 42% to 47%, their economic aggregate from 26% to 29%, and their total volume of goods trade from 18% to 21%. The BRICS countries have become more substantial and influential.
Hu Yishan, chief advisor of the Malaysia-based Pacific Research Center, said, "Through 'BRICS Plus' cooperation, China is leading other emerging market countries with similar development goals to achieve common development by leveraging platforms such as South-South cooperation."
As a leading global manufacturer of construction machinery, Sany has been deeply involved in the major historical process of BRICS cooperation. In 2002, Sany embarked on its globalization journey. Among the first batch of products sold overseas, four motor graders were exported to India, marking its first step into the BRICS market.
"Over the past 21 years, Sany has grown extremely fast in India," said Zhu Dacheng, representative of Sany India's chairman, to China Economic Weekly. Sany has invested over 750 million rupees in a local manufacturing plant in Pune, India. Today, Sany's equipment in the Indian market exceeds 25,000 units.
Zhu Dacheng introduced that currently, Sany's cranes, pile drivers, and straddle carriers hold the top market share in India, while its excavators and mining dump trucks are developing rapidly.
It's not just India. The rapid development of the construction machinery markets in all BRICS countries has brought about significant growth opportunities for the Chinese construction machinery industry represented by Sany.
Xiao Hua, general manager of Sany Brazil, said that Brazil, as one of the world's top ten economies, has a land area of over 8 million square kilometers and a population of 200 million, presenting a considerable market size. When Sany began sales in Brazil in 2010, its annual sales were only tens of millions of yuan. It is expected to reach 30 times that amount this year.
Argentina is the second-largest construction machinery market in Latin America. "Sales in 2022 were 20 times that of the first year, with over 1,200 units in operation, and the brand's influence and value have significantly increased," said Ma Xianlin, general manager of Sany Latin America.
The construction machinery market in Africa is also booming.
Liu Guosheng, general manager of Sany East Africa, said that Ethiopia is one of the top three most populous countries in Africa, the location of the African Union's headquarters, and a "Cape of Good Hope" connecting Africa with the Eastern world. The country's infrastructure is relatively backward, so there is a large demand for infrastructure projects.
Liu Guosheng said that Sany entered the Ethiopian market in 2006. Among them, the total installed capacity of the Adama II Wind Farm in Ethiopia is 153 megawatts, using 102 Sany SE7715 wind turbines. This project is the largest wind turbine export order from China to date.
In 2005, Sany's first equipment was displayed in South Africa. The head of Sany South Africa said that over the past 18 years, the company's sales in South Africa have risen from the millions of yuan level to an expected 800 million yuan in 2023.
"Almost all major projects have Sany equipment involved."
Over the years, cooperation among BRICS countries in the infrastructure sector has been expanding and deepening. Infrastructure construction naturally cannot do without construction machinery.
In the past two decades, Sany equipment has been ubiquitous in BRICS countries: in Brazil, whether it is the World Cup venues or the Olympic venues, Sany construction machinery has made significant contributions. In the Burj Khalifa in Dubai, United Arab Emirates, Sany's ultra-high pressure drag pump set a world record for the highest pump delivery. In the world's tallest "Unity Statue" in India, Sany's crane equipment completed 80% of the lifting work. Since the second half of 2021, more than 1,600 pieces of Sany brand equipment have participated in the construction of the NEOM super city project in Saudi Arabia.
Liu Guosheng said that in East Africa, the popularity of the Sany brand has risen from being unknown when it first entered the market to being well-known to everyone.
Zhang Liang, the general manager of Sany's South Africa region, said, "Almost all major projects have Sany equipment involved. For example, as early as 2013, the Kusile Power Station, the largest thermal power station project in Africa, had 60 pieces of Sany equipment in operation and undertook the most critical lifting tasks of the thermal power station."
"Wanyi concrete equipment and lifting equipment maintain the top market share in Saudi Arabia and the United Arab Emirates. Not only the Burj Khalifa, but also many key projects, such as the Belt and Road Initiative demonstration project, the Dubai Hassyan Clean Coal Power Station, have adopted many pieces of Sany equipment," said Wang Fengkai, the general manager of Sany's Saudi Arabia region.
Xiang Wenbo told China Economic Weekly, "Over the years, Sany Group has been deeply involved in the BRICS countries' markets, not only participating in infrastructure construction, port operations, hydrogen energy development, wind power generation, and other areas, but also directly exporting advanced production capacity, building lighthouse factories, and providing employment training. These have been deeply integrated into the market environment of BRICS countries."
"Self-reliance and local operation," setting up intelligent manufacturing factories in BRICS countries
In the first half of 2023, Sany Heavy Industry, a listed company under Sany Group, achieved international sales revenue of 22.466 billion yuan, a significant year-on-year increase of 35.87%. International revenue accounted for 56.88% of total revenue, and most of the company's revenue and profits came from the international market.
Localization is the key to Sany's global success. Xiang Wenbo said that Sany implements the business strategy of "self-reliance, local operation, and service first", transforming from product export to integrating global resources to support global business. BRICS countries are the priority markets for Sany's global layout.
In Russia, Sany has established a local sales team and launched a series of construction machinery equipment adapted to local working conditions to better meet local customer needs, such as producing low-temperature cranes suitable for extremely cold environments.
Sany's aggressive plan to build smart factories in the BRICS countries has also drawn significant attention. As the saying goes, "Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime." Xiang Wenbo believes that the convergence of the Fourth Industrial Revolution and the Third Energy Revolution has placed the construction machinery industry in an unprecedented super technological window period, with globalization, digitalization, and low-carbonization becoming industry-wide consensus. Under this technological trend, Sany's localized smart manufacturing bases in the BRICS countries will undoubtedly drive local technological progress. Sany's Beijing Pile Driver Factory and Changsha Factory 18 are the only two "Lighthouse Factories" in the global heavy equipment industry recognized by the World Economic Forum in Davos, marking the company's leading position in global heavy equipment manufacturing intelligence. Xiang Wenbo introduced that since 2022, Sany has begun to layout the construction of overseas Lighthouse Factories, replicating and promoting over 100 advanced domestic manufacturing technologies such as automatic sorting, robot welding, one-click clamping in machining, automatic spraying, automatic tightening, and unmanned delivery. For Sany itself, this is an important step in building the core competitiveness of "global manufacturing". Xiao Hua believes that after more than ten years of deep cultivation, the mainstream large customers in the Brazilian market have highly recognized the Sany brand, and the market share of various products is continuously rising. Further deepening of localized manufacturing can better support the development needs of the market. Sany's manufacturing factory in Pune, India, is a successful example. According to the data, the factory has invested over 750 million rupees and locally produces over 50 types of machines, driving the common development of local suppliers. Zhu Dacheng introduced, "The Indian factory is Sany's first overseas investment project, with nearly 1,700 employees. Our development strategy in India is 'Make in India, for India and Global', fully leveraging local cost advantages, labor advantages, language advantages, and geographical and tariff advantages to radiate to South Asia, the Middle East, Africa, and other regions, aiming to recreate a Sany Heavy Industry in India." Sany Heavy Industry's 2023 semi-annual report shows that in the first half of 2023, Sany Heavy Industry vigorously promoted the global manufacturing layout. The construction of smart manufacturing factories in Indonesia, the second phase of India, and South Africa has started, and overseas manufacturing capacity will be further enhanced. The "Sany South Africa Headquarters Base" project, which started construction on November 15th, is the latest move in its overseas factory construction. According to the plan, the base will be completed in one year and can produce 1,000 excavators and other construction machinery annually, with a medium- to long-term expected annual production capacity of 3,000 units. Xiang Wenbo stated that the BRICS countries have become important engines of the global economy, and Sany will firmly seize this historical opportunity to achieve resource sharing, wisdom sharing, and opportunity sharing. In the future, it will strengthen cooperation with the BRICS countries to jointly promote local infrastructure construction and high-quality economic development.
