Zoomlion Establishes Indonesian Subsidiary Localized Platform Begins a New Chapter in Global Development

Currently, Zoomlion has three offices and service centers in the capital city of Jakarta, and one large-scale component storage center. The Indonesian subsidiary will be a genuine localization platform, handling aspects including importation and customs clearance, as well as local distribution, logistics, financing, accounting and recruiting. 

Figures published this year by the Ministry of Commerce indicate that in 2013, China's direct foreign investment showed year-on-year growth of 16.8%. With the growing integration of the global economy, Chinese enterprises' "coming out" has entered a stage of accelerated development. With its goal of being a "world-class enterprise in the equipment manufacturing industry," Zoomlion has always "walked on two legs," cultivating international markets and seeking globalized development. On one hand, the company has used mergers and acquisitions to integrate resources on a global scale. On the other, Zoomlion has improved its own multinational operations system by constructing overseas research and development platforms, assembly facilities, joint venture plants, and market channels. In recent years, it has achieved remarkable successes. 

Within the crowded field of major overseas markets, this has not only created an outstanding foundation for Zoomlion's global development. It has also allowed the company to store up energy to "get through the winter" of difficulties faced by Chinese construction machinery manufacturers. Since April 2011, following adjustments in the macro-economy, many of these manufacturers have begun to face excessive production, declining profits, and financial risks. Expanding overseas markets as a means of withstanding this "severe winter" has become the consensus in this industry. 

The establishment of an Indonesian subsidiary is yet another step in Zoomlion's expansion into global development. Currently, the macro-environmental prospects for the Indonesian market are stable, with vigorous overseas investment, flourishing infrastructure construction, and substantial market potential. It is safe to say that the subsidiary's time has arrived. 

Given the trend toward economic globalization, the strategy of localization has become the only proper course for companies that wish to successfully take part in international competition. Examining Zoomlion's performance at international exhibitions in recent years, it is clear that "localized" strategic concepts and development are increasingly vital to its globalization process. In the first half of this year, at the American Conexpo and the CTT Expo in Russia, Zoomlion tailored its products on display to the customers in attendance. This vividly demonstrates both the company's thorough understanding of the different needs of various overseas markets and its respect for its customers' need for differentiation. 

The establishment of Zoomlion's Indonesian subsidiary will be an important step in achieving the company's localization of its Southeast Asian platform, service centers, and financial services in a networked global system. Whether for product localization, localization of operating channels and service systems, or for production localization, the key role of the subsidiary is to blend into local society and culture. This has already become a common value of the global business community. 

At the opening ceremony for the Indonesian subsidiary, James Wu, Manager of Indonesia's Mulia Group, remarked that the establishment of Zoomlion's Indonesian subsidiary will accelerate the expansion of the Zoomlion brand in Indonesian markets. Furthermore, its product and component services will be even better-suited to the needs of the market. In a very real sense, this will provide localization services for customers and improve the competitiveness of the brand.