Ten years ago, no one would have believed that Germany's Putzmeister and Schweiling, the two former giants of the global concrete pump market, would be included in the pockets of Chinese machinery manufacturing companies. And this year this has become a reality.
On April 17, Sany Heavy Industry (Guba) Co., Ltd. announced that it had completed the acquisition of 360 million euros of Putzmeister. On April 19, the German machinery manufacturer Schweing announced that XCMG had agreed to acquire the majority of Schweing's shares.
At present, among the top ten mechanical enterprises in the world, China has quietly occupied three seats, which are wire pressing and die-cutting machines
In terms of market share, China is also second only to the United States and Japan. According to the latest Reuters statistics, American companies hold 29.5% of the market share, Japan holds 23.5%, China holds 15.0%, Sweden holds 11.5%, and Germany holds 7.3%.
Just a few years ago, Chinese machinery manufacturers were still unknown abroad. According to industry data provider KHL Group, in 2003, Chinese construction machinery companies accounted for only 1.6% of the top 50 global construction machinery manufacturers in terms of revenue. By 2010, this number had risen to 15%.
The frequent mergers and acquisitions of Chinese enterprises in Germany after their growth are due to the outbreak of the financial crisis in terms of timing. During the National Two Sessions this year, senior executives of large construction machinery manufacturers in China stated that the European debt crisis and other factors have caused difficulties for some local enterprises, making it a good time for Chinese enterprises to make overseas acquisitions.
Putzmeister is an example of this. In 2008, Puzmeister disclosed that in 2007, the company achieved a record sales revenue of 1 billion euros, and Earnings before interest and taxes reached 130 million euros. After the outbreak of the financial crisis, Putzmeister suffered a loss of 140 million euros in 2009, losing half of its operating revenue, and ultimately had to start searching for buyers at the end of last year.
He Zhenlin, Vice President of Sany Heavy Industry (Guba), said in an interview with the Morning Post reporter that the acquisition of Putzmeister can not only obtain the German brand and its sales channels, but also inject good "genes" made in Germany into the enterprise. "We are equivalent to inviting a teacher."
He Zhenlin said that Germany has a long-standing manufacturing tradition, which has been accumulated over a long period of time. The improvement of the level of manufacturing industry is a complex process, with people at its core. This is not simply about obtaining drawings and following them step by step.
Reuters analysis shows that Chinese investors are becoming more astute in acquiring foreign companies, no longer just for obtaining raw materials or patents, but for obtaining the source of business growth - technological advantages.
It must be pointed out that Chinese machinery companies are accelerating overseas mergers and acquisitions, and there are also concerns about the slowdown in the domestic construction machinery market growth.
In a recent report titled "Chinese Construction Machinery Enterprises Lay the Foundation for Global Growth," S&P stated that the slowdown in demand growth in the domestic construction machinery market and intensified industry competition may stimulate Chinese construction machinery enterprises' overseas expansion plans, such as pressure line die-cutting machines.
Standard&Poor's predicts that in 2012, China's construction machinery manufacturing