Chinese rental company XYZ plans expansion
By Murray Pollok04 September 2012
One of the pioneers of aerial platform rentals in China, Beijing XYZ Co Ltd, has expanded its operations into western China and is contemplating a move into crawler crane and power rentals.
The company, which started importing Genie machines in 1995 and now has a fleet of around 300 booms, scissors and atrium lifts in Beijing and Shanghai, has opened its third rental location in Urumqi, located in the western province of Xingjiang, with an initial fleet of 20 scissors.
Li Zhong, founder and managing director of XYZ, speaking to IRN in Beijing through an interpreter, said he planned to expand the fleet to around 500 units over the next few years. Although the Urumqi depot will take some of the additional machines, XYZ will also deepen its coverage in its two existing markets with an additional 10 satellite depots to be opened over the next 12 months.
Half of these new locations will extend the coverage of the Beijing office to the Bohai Bay area, including Tianjin, and the other five will boost its presence in the ‘Yangtze Triangle' area around Shanghai.
In addition, Mr Li said XYZ was thinking about how to develop its rental business over the mid- to long-term. He said a move into new rental markets for either crawler cranes or power was likely before the end of this year, with the final choice of product determined by demand from customers.
Mr Li said the company would invest despite the slowdown in China's economy, which has seen sales of construction equipment almost half from the peak in 2010. He said XYZ had the financial resources to invest and grow its business at a time when other businesses were conserving cash.
XYZ's rental fleet - split 90% scissors and 10% booms - comprises mainly Genie machines as well as a few Omme atrium lifts. More recently, however, Mr Li has been buying from Chinese manufacturer Mantall.