Sany opens € 100 million German facility

By Helen Wright21 June 2011

Sany's new manufacturing facility in Bedburg, Germany, began production in June, 2011.

Sany's new manufacturing facility in Bedburg, Germany, began production in June, 2011.

Chinese construction equipment producer Sany Heavy Industry has opened its first manufacturing facility in Europe - a € 100 million factory in Bedburg, Germany, that will produce truck-mounted pumps, stationary pumps and concrete batching plants.

The industrial park, which includes a research and development centre, will be able to produce 3000 machines a year. It is expected to generate annual revenues of € 350 million.

Speaking at the 20 June opening ceremony, company chairman Wengen Liang said the new manufacturing base represented China's largest industry investment in Europe.

"We hope to act as a role model for other Chinese companies - hopefully many others will follow our lead in time and begin to manufacture in Europe," Mr Liang said.

"Concrete products are our main strength - they are the first machines that Sany developed. We believe we can achieve better profit margins by manufacturing concrete machines for the European market in Germany."

Mr Liang said the company had decided to establish its own facility in Europe instead of growing through acquisition as part of its ongoing strategy of expanding through organic growth around the world.

"We have the advantage of the technical resources and funds that we have amassed over the last decade, and are confident of our success. It is very likely that we will invest more than € 100 million in Germany, and the machines we produce at the new facility will be sold worldwide, with an initial focus on the European and North African markets," he said.

Mr Liang added that the company was determined to change Western opinions of Chinese-produced construction machinery. "Chinese products are seen worldwide as second class, and as being of weak quality. It is Sany's mission to end this perception. European quality standards are our standards."

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