Sany-Palfinger opened its new factory at Rudong of Nantong City, Jiangsu Province on November 28, 2014. Rudong industrial park, the sixth manufacturing base of Sany in China, covers an area of 670,000 m2 including 270,000 m2 building area.
According to the five-year plan, its annual capacity is 10,000 units of specialized vehicles, annual value of production and profit could reach 3 billion yuan and 200 million yuan respectively. The joint efforts of Sany and Palfinger, together with the strong support from Nantong government will bring in excellent returns in the near future.
What’s more uplifting is that, Sany-Palfinger JV not only opened a new factory but also did a good job in the market. In 2014, Sany-Palfinger sold over 900 units of equipment, more than double the sales of 2013, market share rose to 8.4%, putting the company third place in the market. Its international market is more encouraging, pocketing a total of 20 million in sales and making breakthroughs in Southeast Asia, North Africa, and Latin America. Extra costs incurred from factors such as new site moving not counted, the company realized a profit of over one million yuan.
The market changes could be clearly felt by our salesman. According to Zhang Zengfeng, regional manager in Shanxi Province of Northwestern China, the market share there increased two times and reached 45% in capital city Taiyuan in 2014. The demonstration effect of some core customers there played an important role. Sany-Palfinger’s products targeted at the mid and high-end market and were more expensive; therefore, customers were more prudent before purchasing. But once they got to know the features and quality of the products, they would be more likely to buy again, which usually lead to purchase by other customers. Diversification of chassis in 2014 helped attract even more customers.
Facing the New Normal of the Chinese economy in 2015, David Yao, Sales Director of Sany-Palfinger, said that the company would grasp market opportunities to further explore the market through diversified marketing methods, providing high-quality product and service to the customer.