Terex AWP changes tactics in China
By Euan Youdale15 October 2013
Terex AWP has sidelined the scissor and boom lifts designed for the Chinese market that it launched at Bauma China last year.
The company will now extend its existing range of booms and scissors at its subsidiary in Changzhou, China which are aimed at customers in the country and Asia Pacific.
The 12 m Genie V1200 boom and 5 m push around Genie PS500 scissor were introduced as a low cost alternative for the Chinese market with stripped back features.
But as Clint Weber, general manager at Terex Changzhou Machinery, told AI at the BICES exhibition in Beijing last week, much changed in the two year design period of the V1200 and PS500. It was decided that Chinese customers would prefer machines from Terex AWP's standard lines.
Since 2011 Terex Machinery has introduced a range of Terex AWP standard products at the China plant including the S100 and S120 booms, as well as the metric versions S32 and S38.
In May this year it added the 3246 scissor, and then in June it added the 2046 and 2646, followed by the 40 foot 4047 in September. The latter is set to compete directly with Chinese manufacturer Dingli which also has a 40 foot scissor lift. Terex also manufactures the Z-45 boom in Changzhou.
At the end of October the company will bring the 60 foot S60 boom to the China facility. By the end of February next year there will further models bringing the total to three Z booms, four S booms and five scissors models.
Some 70% of Terex's access equipment revenues in China will then come from Changzhou.
Mr Weber said," We have been evaluating what the market really wants. There is a need for speed and efficiency rather than downgraded products."
Last year Terex Changzhou Machinery revenues increased by 50%, despite the economic downturn in China, mainly because the concept of access equipment is starting to take hold and there is a minimum requirement in the country.
There will still be growth over the coming months, adds Mr Weber, but it will be slightly less than last year.
"Personal safety is becoming more critical, plus there are pay increases if 10 -12% a year, and productivity is starting to become an issue," added Mr Weber.