Shaping Global Competition Structure of Concrete Machinery Industry - A Financially Immeasurable Acquisition

Within only less than 20 days, Sany Heavy Industry and Putzmeister joined together to be one family. Despite all the talk about the acquisition worth 2.6 billion RMB, Xiang Wenbo, President of Sany Heavy Industry, said that “this strategic investment cannot be measured by money”. In Mr. Xiang’s eyes, having Putzmeister means having world-class technology and top place in the industry. The merger will restructure the competition in the field of world concrete machinery and advance the realization of Sany’s globalization target for five to ten years.

 

According to relevant sources, Putzmeister develops, produces and sells construction machinery all around the globe. It has long taken a market share of over 40% outside China for concrete pumps. During its 54 years of history, Putzmeister has established leading quality, technologies, international sales and service system in world concrete pump truck industry.

 

There is no doubt that Putzmerister has the most advanced technologies in concrete machinery industry. The merge is the cooperation of two giants. Technologies “Made in Germany” will further enhance quality of Sany’s products.

 

On the other hand, Sany targets mainly at Chinese market. The sales in China maintain an increase rate of more than 50%, while that of overseas market grows slowly. It has been more than ten years since the globalization of Sany started in 2002, but export still takes less than 5% of the total sales, “far less than the goal of 30% in 2015,”said Mr. Xiang. The sound global sales network and service system of Putzmeister will advance the realization of Sany’s globalization target for five to ten years.

  

In the field of concrete machinery, the rate of margin of Putzmeister is around 10% currently while that of Sany has been above 40% for a long time. Putzmeister will remain its leading place with its technological advantage combined with Sany Heavy Industry’s cost advantage.

 

“The merger is in accordance with the mutual strategy and industrial goal of the two parties,” said Mr. Xiang. The merger is not merely a financial acquisition, but more of a strategic one that will have influence on global competition structure and establish Sany’s leading place in the industry. Mr. Xiang went on, “Through the acquisition Sany has owned or turned itself into a global top brand. The benefits are not financially measurable.”