Europe plays a major and unique role among cooperators in ‘One Belt, One Road’. In recent years, with signing of trade and economic agreements between China and Europe, a bridge of cooperation is built for the two parties and more probabilities are created to engineering machinery companies in China. Xinwei was settled in Europe as early as in 2006 by opening its office in Germany. After years of refined operation, the ‘european research, development and manufacturing’ of Xinwei is showing a growing momentum in its engineering machinery products. In 2016, European company of Xinwei showed a large-range growth in sales performance, among which sales of excavating machine grew by 227% when compared with that in 2015.
In 2011, Xinwei Bedburg Industry Park with an input of 100 million euro was put into official operation. By relying on the 20,000 square meters of production base, Xinwei’s European Company realized rapid and sound development. According to Deng Mingliang, General Manager for Xinwei Europe, it is resulted from its localized productions strategy.
According to Deng Mingliang, General Manager of Xinwei Europe, it is resulted from its localized productions strategy. As early as six years ago, Xinwei Europe established its R & D Center. It seeks for breakthrough in product performance in research and development of devices. It is known that the European market has strict CE certification requirements on its products and its technological threshold is higher than most market in the world. Domestic products have to accomplish localized modification and CE certification before they can access the European market, so XInwei Europe starts by spend big on research, development and improvement of product sin alignment with local law and hunts for preference of requirements by European clients. Deng Haijun states that Xinwei woos approval by European and global clients with vibrancy and strong coping strategies with the market and by combining with ‘advantages of manufacturing in China and western technology’ as an emerging brand that accesses the European market.
After it procured Putzmeister in 2012, Xinwei Europe properly adjusted its operation orientation by launching new product assemblies after converting concrete machinery to port machinery equipment, excavator, crawler crane and spiral hammer.
Such port machinery equipment as stacking machine, front-handling mobile crane and so forth rapidly opens its market in the local place. Xinwei branded port machinery equipment is everywhere to be seen in Duisburg, terminus of China-Europe railway, Antwerp Port, the largest port in Belgium, Brugge Port, the 6th largest port in Europe and other shipping hubs in Europe. In 2014 when President Xi Jinping cut the ribbon at the opening ceremony for Chongqing-Xinjiang-Europe section of China-Europe line during his visit in Germany, several front-handling mobile cranes made by Xinwei Europe were in operation. It can be said that in the construction of the ‘international big vein for logistics’, SANY equipment made outstanding contribution.
In 2015, Xinwei Europe brought the trump card product in China to Europe with excavator as the major product. After passing the demanding product safety certification in EU, Xinwei launched 12 tailored excavators to the European market during BMW exhibition in Munich. It got a record form of intention reaching around 700 million Yuan.
‘In the stable, mature and fiercely competitive market of Europe, Xinwei establishes its initial goal at realizing sales of 1000 excavators and boosting cognition of its brand.’ When receiving interview of local media, Deng Mingliang indicated that they had confidence that Xinwei branded excavators would rise from 5% to 10% in terms of market share in Europe.
Other than output of outstanding products, how to establish a localized team soon constituted the key assignment for overseas development in Xinwei Europe. In the factory in Bedbug, almost all staffs are skillful German workers. Middle-level and high-level managerial staffs in its managerial team with over 60 people are almost from German and other European countries and the localization rate reaches 85%. The capable localized team helps SANY to get integrated to local social and economic life.
Theo van Horck,, a Dutch, is proficient in English, German, Dutch, Spanish and other languages. He joined Xinwei Europe in 2014 and served as marketing manager of excavators in charge of areas of German language. He showed high approval to Xinwei culture. According to him, working in here gives him passion and more important, he thinks positively about Xinwei excavator in its long-term development in Europe. Theo registers for study class for Chinese this year and attempts to improve his Chinese ability despite a busy schedule in work.
Other than localization of talents, the increasingly completed network of agents is also a key that Xinwei Europe excavators can be officially launched to the market. As the largest-scaled market of excavator, UK is one of the Top three in engineering machinery market in Europe. In June, 2015, excavators of Xinwei Europe were officially launched to the market of UK. TDL Company, a local agent, successfully sold over 30 excavators to clients for trial and received good response. Due to its speedy and valid behaviors, TDL Company opens the pattern for SANY’s extension of UK market.
It is known that Xinwei has 24 powerful agents in Europe. In 2016 alone, 12 newly-added European agents signed agency agreements with Xinwei. Deng Haijun reckons that the rapidly expanding team of agents would further boost the service level of Xinwei Europe and helps it with its internationalized development. In the meantime, he also feels that ‘One Belt, One Road’ brings about huge impetus to development of Chinese companies.
Xinwei has taken roots in Europe. With ‘One Belt, One Road’ being intensified, Xinwei Europe is also greeted with a new development opportunity. Since 2013, ’16 +1’ cooperation model between China and Central and East Europe has been gradually settled and numerous joint venture projects begin to emerge in the Central and East European market and Turkish market. Deng Haijun indicates that Xinwei Europe will determine that the Central and East Europe will be its key market. It would attempt to hunt for the model closing bonding middle and long-term business of ‘One Belt, One Road’ with local economy in a bid to greet a brand new stage of marketing opportunities.