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Shantui: multi field sustainable development to enter the international market

Shantui: multi field sustainable development to enter the international market

China Construction machinery information

Guide: as a leading enterprise in the domestic bulldozer industry, Shantui Co., Ltd. continues to expand its market share by relying on its product technology advantages. With the fierce competition in the market, the enterprise continues to develop in depth towards the diversification of products. In terms of resource allocation and product structure optimization, new projects such as loaders, forklifts and small excavations have been launched to strengthen

as a leading enterprise in the domestic bulldozer industry, Shantui Co., Ltd. continues to expand its market share by relying on its product technology advantages. With the fierce competition in the market, the enterprise continues to develop in depth towards the diversification of products. In terms of resource allocation and product structure optimization, the 8th China International Automotive Lightweight plastics and innovative materials development forum has launched loader, forklift, small excavation and other projects, which not only strengthens the main business, but also continues to expand the market field. Recently, Shantui has invested 528million yuan of funds raised from the allotment to expand the technical transformation of bulldozer exports and the technical transformation of crawler chassis of construction machinery, which has laid a foundation for Shantui to continue to expand product exports and expand its international market share in the future

at present, Shantui products have huge domestic and international market capacity and good development prospects. According to the "Eleventh Five Year Plan" of China's construction machinery industry, China's transportation, water conservancy and hydropower, energy construction, construction and other industries will continue to develop rapidly during the "Eleventh Five Year Plan", which will drive the demand for construction machinery to continue to maintain a vigorous growth trend. It is estimated that by 2010, the demand of the construction machinery industry will reach 272 billion yuan, an increase of 74.36% over 156 billion yuan in 2005. Among them, the domestic market demand for bulldozers will reach 8000, an increase of 65.02% over 2006. The domestic bulldozer market has a good development prospect. According to the prediction of the 11th Five Year Plan for China's construction machinery industry, there is a huge market demand for downstream products related to crawler chassis, such as hydraulic excavators, bulldozers, crawler cranes, pavers, milling machines, etc., which provides a good development opportunity for Shantui crawler chassis products

by the end of 2006, the number of major construction machinery in China was about 1.88 ~ 2.05 million. Among them, 358 ~ 388000 hydraulic excavators and 50000 ~ 55000 bulldozers above 73.5kw (100 horsepower). According to the replacement ratio of bulldozer and excavator, which is 1/4 of the replacement ratio every year, the total annual demand of bulldozer and excavator maintenance supporting crawler and chain rail is about 100000 sets. Therefore, according to the market demand, the company will carry out technical transformation and expansion of the crawler factory and forging factory in the international business park of the company, and increase the equipment to meet the requirements of mass production, processing, assembly, heat treatment, coating, forging and so on. By 2010, the production capacity will reach an annual output of 33500 sets of crawler and chain rail assemblies. The huge number of construction machinery provides a broad market foundation for accessories

after years of full competition in the domestic bulldozer market, the survival of the fittest has initially emerged, the market has gradually tilted towards advantageous enterprises, and the concentration in the industry tends to increase. Domestic bulldozer manufacturers sold 5925 bulldozers in 2006, and Shantui Co., Ltd. sold 2733, ranking in the forefront. In 2004, 2005, 2006 and 2007, the domestic market share of bulldozers calculated by sales volume has reached 36%, 42%, 46% and 51% respectively. The company ranks the leading position in China's bulldozer industry with good product quality

Shantui crawler assembly series products are produced by Shantui Co., Ltd. with the introduction of world advanced technology. At present, there are 13 kinds of pitches and more than 100 specifications and models of dry-type, sealed and lubricated series, which can be used for various crawler construction machinery at home and abroad. The market share has developed from 11% in 2001 to 14% in 2006. The market share has increased year by year, and the competitive advantage of products is obvious

in the international construction machinery market, we should see that although Shantui occupies a large domestic share in the export of bulldozers, it only accounts for about 8.61% of the global bulldozer market share. If the domestic market is deducted, the company only accounts for about 2.83% of the overseas bulldozer market share. The potential development space of the international bulldozer market is still very large. Strengthening and expanding international market competition is the only way for enterprises to develop in the long run. Through continuous efforts, Shantui's products have been exported to more than 100 countries and regions, and the company's export volume has been ranking first in the domestic industry for 18 consecutive years. The export volume of bulldozers has maintained rapid growth. In 2004, 2005, 2006 and 2007, the company exported 238, 421, 709 and 972 bulldozers respectively, an increase of 68.41% over 2005, accounting for 66% of the export market share of the same industry in China. It is expected that in the future international market, as the infrastructure construction in South America, South Asia, West Asia, North Africa, Russia and other countries and regions is at its peak, there is a strong demand for construction machinery. At the same time, the company is actively exploring the European and North American markets. Compared with the products of international well-known enterprises, the company's products have obvious cost performance advantages, and the company's exports will continue to maintain a good growth trend in the future

(source: Shantui shares)

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