China-based original equipment manufacturer Zoomlion is reported to be looking at potential acquisition deals in Europe to boost the firm’s technological expertise.
In the most recent Yellow Table – a list of the world’s top 50 original equipment manufacturers by revenue, compiled by International Construction magazine – Zoomlion was placed at number 13, with estimated revenues of just under US$3.8 billion.
Increasing numbers of China-based construction equipment manufacturers have focused on overseas markets over the last decade.
Figures provided by China’s heavy machine industry association show that in 2001 these firms exported US$1.6 billion worth of products – a figure which increased to over US$20 billion in 2018.
Vice president of Zoomlion, Xia Jun, was reported by the Financial Times to have said, “We are looking for more acquisition targets. In the future we will pursue small companies with special technology, who do very well in a particular field.”
Numerous Chinese firms are looking to overseas markets to compensate for a drop in the Chinese domestic market which, while still strong, is predicted to decline.
Information compiled by Off-Highway Research showed that sales of construction equipment rose 30% in 2018 to 325,000 units. However, this number is predicated to drop to just over 300,000 units in 2019.