Sany Group Expands in Overseas Markets through Localization

Over the past year, Sany Group has taken significant action to expand its business in international markets, embracing a foreign operation mode that prioritizes local capacity development in its overseas operations.

Sany Heavy Industry President Xiang Wenbo said that the company will upgrade its foreign operation mode by focusing on international capacity cooperation. “Localization is important for Sany's international expansion,” Xiang added.

Sany has drawn up its overall development framework in line with the countries and regions covered in China's Belt and Road Initiative. It has established multiple business units globally, and R&D and manufacturing bases in Germany, India, Brazil and the United States, with business covering over 100 countries and regions worldwide.

The dynamic Online-to-Offline (O2O) business model Sany adopted has provided customers with a convenient way to find and engage with its local dealers and services centers worldwide. This model has become a new driving force in the company's international expansion.

Overseas sales revenues have grown steadily and in 2015 Sany Heavy Industry international sales exceeded $1.5 billion (10 billion yuan), accounting for 44.2% of total sales — 11.9% growth from the previous year.

In April, Sany launched 11 new excavators at Bauma 2016 – the world's leading trade fair for construction machinery held in Munich, Germany. The exhibition served as a great platform to gain more exposure and expand business in the European market.

Sany has also strengthened cooperation with African nations. During his May visit to South Africa, Sany Group Chairman Liang Wengen signed a cooperation agreement with South African Transnet to strengthen collaboration in local production of port and logistics equipment.

The company also intends to increase cooperation with the Ethiopian government in housing construction and education projects to further support Ethiopia's economic and human development.

In June, Sany signed a Memorandum of Understanding with the government of central Indian state Madhya Pradesh. It plans to expand business in India by helping the state develop renewable energy assets to meet the high local electricity demand.

Sany America and Sany India are good models of localization in practice, with both being run by local executive staff. Sany India employs over 1,000 local employees, bringing together local talent and developing new concepts and technologies that transform the business while benefiting local communities — a model Sany intends to replicate as it further expands globally.