XCMG launches subsidiary to distribute equipment in Kazakhstan

XCMG has established a subsidiary, XCMG XuGong Kazakhstan, to handle the distribution of its equipment and help to the growing number of construction projects in the Central Asian country.

Based in the largest city, Almaty, the company will sell XCMG’s highly products, provide aftersales service and work with local dealers to improve customer experience in the up and coming regional power.

Already the largest economy in Central Asia, Kazakhstan is rapidly developing its extractive industries and is also a crucial link in China’s Belt and Road Initiative (B&R), which seeks to revive and redevelop the ancient Silk Road trade routes across the Eurasian plateau.

Wang Min, chairman and president of XCMG, noted: “XCMG will seize the opportunities presented by the B&R and providing local, customised products and packages to facilitate both infrastructure construction and XCMG’s sustainable development in Kazakhstan.”

XCMG first entered the equipment market in Kazakhstan 16 years ago, and since then has been an active participant in local infrastructure projects, including road, railway and airport construction.

Today the Chinese manufacturer is the top brand in the country, and holds an over 80% market share, and leads in loaders, cranes, road construction and pile work machines.

There are already more than 20,000 pieces of XCMG equipment in operation across the country and the company’s equipment was also used in the construction works for Expo 2017 in the country’s capital, Astana.

Miao Hongbo, the consul-general for China in Almaty, celebrated the establishment of XCMG XuGong Kazakhstan as a platform for Sino-Kazakhstan cooperation through the support of Kazakh projects.

The development is part of a long-term expansion strategy that, in 2014, also saw XCMG establish a joint venture company in Urgench, with the Uzbek national rail carrier Uzbekistan Railways.

In May 2015, the manufacturer also doubled down on its charm offensive in central Asia, by associated itself with China’s B&R cross-continental development plan and conducting an overseas service tour of the region.

The tour saw XCMG embark on a 20-country tour with 1,000 technicians to perform maintenance and system upgrades on an estimated 10,000 products, or 53.7% of its product population, already past their three-year warranty.