|Type||State-owned limited company|
|Traded as||XCMG Construction Machinery Co. Ltd. (000425.SZ)|
|Headquarters||Xuzhou, Jiangsu, People's Republic of China|
|Revenue||US$13.8 billion (2011)|
XCMG Group is a Chinese multinational heavy machinery manufacturing company headquartered in Xuzhou, Jiangsu. It is the world's tenth-largest construction equipment maker measured by 2011 revenues, and the third-largest based in China (after Sany and Zoomlion).
1989 to 2011
XCMG formed a joint-venture with Caterpillar Inc. in 1995, Caterpillar Xuzhou Ltd., with the companies subsequently jointly building a 170,000 square metre excavator plant in Xuzhou. In the same year, XCMG and Liebherr Group signed a licensing agreement allowing XCMG to manufacture three models of Liebherr all-terrain cranes, including the six-axle LTM 1160 160t AT. XCMG's subsidiary Xugong Science & Technology Co. Ltd. (later renamed XCMG Construction Machinery Co. Ltd.) listed on the Shenzhen Stock Exchange in August 1996.
In 2010 XCMG signed an agreement with the Chinese oil company Sinopec to jointly develop crawler cranes. In May 2010 XCMG established a new wholly owned subsidiary focused on the railway equipment market, XCMG Railway Equipment Co. Ltd., with a plan to invest RMB 450 billion in production capacity and capital reserves. In June 2010, XCMG agreed to sell its remaining 15.87 per cent stake in Caterpillar Xuzhou Ltd. to Caterpillar.
2011 to present
In April 2011 XCMG signed an agreement with the Venezuelan government to establish a construction equipment manufacturing joint-venture company in Venezuela. In October 2011 XCMG Construction Machinery was forced to abandon a planned US$1.5 billion initial public offering on the Hong Kong Stock Exchange as a result of market conditions.
In February 2012 XCMG began manufacturing an 88,000 tonne-metre rated lattice boom crawler crane with a 3,600 tonne capacity, intended for use in the construction of power generation plants and petrochemical facilities. XCMG agreed to acquire a majority stake in the privately owned German machinery manufacturer Schwing for an undisclosed amount in April 2012. The acquisition of a 52 per cent stake was completed in July 2012.
In June 2012 XCMG completed the construction of new facilities in Xuzhou for the manufacture of all-terrain cranes, wheeled loaders, concrete pumps and other concrete machinery. The facilties were built at a cost of US$1.9 billion, occupy around 2 million square metres, and have the capacity to build 5,000 large and medium capacity cranes, 40,000 wheeled loaders and 20,000 units of concrete machinery annually.
XCMG's products include:
- aerial platform fire trucks;
- aerial work platforms;
- asphalt concrete pavers;
- backhoe loaders;
- compact wheel loaders;
- concrete mixers;
- concrete pumps;
- crawler cranes;
- heavy trucks;
- rotary drilling rigs;
- soil stablizers;
- truck mounted cranes; and
- wheel loaders.
Research and development
The company has more than 4,000 R&D employees and annual investments above USD 160 mn in the last year. The two most important R&D facilities are the XCMG Research Institute and the XCMG Technology Center. To further expand its R&D capabilities XCMG is establishing two new R&D facilities, one in Germany (2013) and the other one in the US (2014). In 2010, the company filed more than 200 patent and utility model applications.
- Reuters retrieved 8 March 2012
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- "Venezuela and China Chart the Road to Strategic Collaboration". Hamsayeh. 27 April 2011. Retrieved 8 March 2012.
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- "Chinese giant XCMG takes German Schwing". Construction Week Online. 24 April 2012. Retrieved 25 April 2012.
- "XCMG: Acquisition of a 52% Stake in Schwing Completed". China Scope Financial. 9 July 2012. Retrieved 11 July 2012.
- "XCMG expands capacity with four new manufacturing bases". China Construction Machinery Business Online. 28 June 2012. Retrieved 11 July 2012.
- "Groundbreaking ceremony for XCMG Europe". China Construction Machinery Business Online. 7 July 2012. Retrieved 11 July 2012.
- "Products". XCMG Group. Retrieved 8 March 2012.