Construction Machinery to Witness Boom on Surging Demand from Overseas Markets
China's construction machinery sector is
expected to see stable export growth this year on the back of soaring overseas
infrastructure projects and strong global orders for electric-powered
excavators, loaders and other mining equipment, domestic manufacturers said on
Tuesday.
A roll-on-roll-off vessel loading 500
excavators and a self-discharging truck produced by Xuzhou Construction
Machinery Group Co Ltd (XCMG) left for Nigeria from a wharf of the Lianyungang
Port in East China's Jiangsu province recently.
Sun Dong, manager of rolling
transportation unit at a subsidiary owned by Lianyungang Port Group, said this
is the 100th cargo ship loaded with construction machinery being exported this
year.
Liu Jiansen, vice-president of XCMG
Construction Machinery Co Ltd, a subsidiary of Jiangsu province-based XCMG,
said the company's export orders mainly came from Asia, Africa and Latin
America, but that it witnessed explosive growth in the European, Australian and
North American markets this year.
The export orders for products from
excavators and earth moving equipment, to mining machineries such as giant
mining trucks and excavators, have all experienced between 300 percent and 400 percent
growth year-on-year in the first four months, he said.
The country's major excavator
manufacturers reported a sharp increase in exports in the first four months, as
their exports surged by 78.9 percent year-on-year to 33,791 units during the
period, said the Beijing-based China Construction Machinery Association (CCMA).
Since many foreign companies have
adopted a "go green" approach to further reduce carbon emissions and
save on the cost of diesel fuel, many domestic manufacturers have accelerated the
pace of developing electric-powered construction machinery to secure an
increased share in overseas markets.
Jiangsu Weiteli Motor Ltd, a Taizhou,
Jiangsu province-based manufacturer of electric vehicle drive motors, saw
orders for motors used on electric construction machinery rise between January
and April, and they already exceed the total order volume logged last year. The
company predicts the market in this category is expected to grow more than 300
percent on a yearly basis in 2022.
In South America for example, a
27-metric-ton electric excavator consumes about 100 kilowatt-hours (kWh) of
electricity for an hour and costs less than $16 to operate. Under the same
conditions, a fuel excavator consumes between 16 liters and 17 liters of diesel
and costs over $23 to run, said Shi Hongliang, the company's vice-president.
"Assuming the operating time is
3,000 hours a year, costs of energy and maintenance of a 27-ton electric
excavator can save about $25,000 per year," he said. "Since
international crude oil prices have remained high this year, our motors used in
electric construction machinery have sold well in both domestic and foreign
markets."
The diesel-powered construction
machinery market currently is finding increasing use by new energy products,
especially in developed markets such as Germany, France and the United States,
said Li Dongchun, general manager of the international business center at
Guangxi Liugong Machinery Co Ltd, a Liuzhou, Guangxi Zhuang autonomous
region-based construction machinery manufacturer.
Customers are also demanding longer
battery lives and smarter control systems, pushing the company to continuously
launch new products, he said.
The electrification trend of
construction machinery with small operating radiuses and fixed activity is more
obvious, such as electric-powered loaders and dump trucks used in factories,
mines and ports, he added.
Li said the earliest start of
electrification in the field of construction machinery is the electric
forklift. Among the forklifts it currently exports, the proportion of electric
forklifts has reached 62 percent.
Liuzhou exported 1.44 billion yuan ($216
million) worth of construction machinery in the first four months, while new
energy loaders have become a pillar product for the city's exports in this
category, according to Liuzhou Customs, a branch of Nanning Customs in Guangxi.
Wu Peiguo, secretary-general of CCMA,
said with notable improvement of the technical level, quality and reliability
of batteries, motors and electronic control systems in China, the nation's
export volume and production capacity of electric-powered construction
machinery will continue to rise this year.
Under China's coordinated regional
growth strategy and ongoing establishment of a unified domestic market, Wu said
demand for infrastructure construction remains appealing with continuous
efforts to drive the development of the Beijing-Tianjin-Hebei region, the
Yangtze River Economic Belt and the Guangdong-Hong Kong-Macao Greater Bay Area.
The Communist Party of China Central
Committee and the State Council jointly released in April a guideline on
accelerating the establishment of a unified domestic market. It said China will
optimize the layout of commercial and trade circulation infrastructure,
bolstering the integration of online and offline development.