Zoomlion Heavy Industry Science and Technology Co Ltd, one of China’s leading construction machinery makers by production capacity, will make more investments in the Regional Comprehensive Economic Partnership signatory countries in the coming years, said Wednesday a senior executive.
Greenfield refers to sites previously undeveloped for commercial development or operation. These sites offer several potential benefits to developers, including the ability to create new infrastructure from scratch, the ability to expand operations, and shorter construction times.
Besides setting up trading and leasing companies in Australia, Japan, Indonesia, Thailand, Vietnam and other countries in recent years, Zoomlion will further diversify its investment portfolio in RCEP-related markets to the next step, said Fu Ling, a delegate to the 20th National Congress of the Communist Party of China, as well as the group’s vice president and chief engineer.
She said the deep economic integration of RCEP members and a growing number of infrastructure projects, spurred by the tangible growth of the Belt and Road Initiative, will help the company ship more products to other long-term RCEP markets.
Since the RCEP deal came into force on January 1, it has delivered increasingly large dividends to businesses through tariff concessions, trade facilitation and other policies. Trade between China and other RCEP members reached 8.32 trillion yuan ($1.15 trillion) in the first eight months, accounting for 30.5 percent of China’s total foreign trade, the Commerce Ministry said.
“We will establish new factories and rely on localized manufacturing centers to expand our business in key emerging markets and developing countries to pave the way for the transfer of mature production capacity from the domestic market, as well as the integration and allocation of the group’s global resources,” Fu said.
Boosted by localization strategies and the application of digital solutions for its products – ranging from cranes and earthmoving machinery to concrete and construction lifting equipment – Zoomlion has seen its export value soar 40% over a annual basis between January and August, while its sales in Indonesia, the United Arab Emirates, Saudi Arabia and Vietnam jumped more than 100 percent year-on-year, the company said.
With its markets covering more than 100 countries and regions, Zoomlion currently operates more than 50 overseas manufacturing bases, research and development facilities and sales branches. Backed by more than 25,000 employees, the group recorded 67.13 billion yuan in operating revenue in 2021, while overseas revenue rose 51.05 percent year-on-year.
In addition to planning the construction of factories in Saudi Arabia and Turkey, Zoomlion is currently building logistics and parts supply centers in Brazil and the United Arab Emirates to strengthen its competitiveness in South America and the Middle East.
Driven by soaring global demand, especially in developing markets, the total value of China’s construction machinery exports rose 28.6 percent year on year to $25.96 billion in January. to July, according to the latest data from the Beijing-based China Machinery Industry Federation.
Although facing protectionism and anti-globalization sentiment in some parts of the world, China has expanded its high-level opening up with concrete actions and continued to encourage domestic enterprises to increase their presence in the global market, said Zhao Ping, deputy director of the China Academy Council for the Promotion of International Trade in Beijing.
“These measures will boost cross-border business activity and accelerate global economic recovery, which is being hampered by the COVID-19 pandemic, geopolitical tensions and interest rate hikes in developed economies,” Zhao said.
China’s non-financial outward direct investment rose 5.8 percent year on year to $75.11 billion between January and August, the Commerce Ministry said.