Wacker Neuson launches mid-priced light equipment for emerging markets
29 November 2012
Wacker Neuson launched a range of mid-priced light equipment for China and other developing markets at the Bauma China show in Shanghai.
The new ‘M series’ comprises plate compactors, rollers, pumps, generators, lighting towers and walk-behind saws, which will be built mainly at Wacker Neuson’s existing facility in the Philippines as well as at its US plants.
The range will be targeted at the Chinese market and other developing markets such as wider Asia, the Middle East and Latin America.
Cem Peksaglam, chief executive officer of Wacker Neuson, speaking at the company’s press conference during Bauma China, said; “The M series will be very competitive. We have done an analysis and we [our prices] are sometimes even lower than the local competition, and sometimes a little higher. We are extremely competitive.”
The development of the new range is part of Wacker Neuson’s strategy to increase its business in developing areas of the world. China currently represents just 4% of its revenues, while emerging markets represent around 14% of its €1 billion annual sales.
In China the company is now expanding its dealer network. It currently has around 50 dealers but wants a much higher number.
The reduced cost of the M series range is partly the result of using Chinese made components. For example, Wacker Neuson has worked with an unnamed Chinese engine manufacturer to develop a range of engines built to its own specification.
Mr Peksaglam said; "The Asian market is becoming increasingly important for our group. We would like to grow here significantly in the coming years. On the one hand, that will be realized through our new product range in the area of construction equipment, which we first introduced to a larger audience at Bauma China. We also see good market opportunities with our compact equipment."
Wacker Neuson has been present in Hong Kong with its own sales company for over 15 years and has had sales and service facilities in Shanghai, Beijing and Shenzhen since 2006.
The company also showed several of its compact equipment models at Bauma China, including an excavator and wheeled loader.