Chinese construction machinery maker Sany Heavy Industry Co., Ltd. (SHSE: 600031) has begun benefiting from a foray into markets overseas.
It released financial results for the fiscal year 2012 on April 26 and according to the results, the overseas sales revenue approached to CNY 10 billion, up 155 percent from a year ago.
It saw the first product be exported in 2002 and the proportion of overseas sales revenue to the total hit 19.4 percent last year, up 12.4 percentage points from a year earlier. In the past a decade, it built a self-owned R&D and manufacturing base in the US, Germany, India, and Brazil in succession. In the meantime, it continued perfecting the sales system globally. And at the start of last year, it acquired Putzmeister. Performance of the German pump maker continued improving after the deal and the sales revenue surged up by about 30 percent year on year last year. This helped it much and last year, its sales from cement business touched CNY 30 billion globally, ranking No.1.
It regards the US as a very important market and witnesses brand awareness there continue enhancing. It signed an investment agreement with the US in 2007 and kicked off the planning and constructions in 2008. Xiang Wenbo, president of it, once said that the branch in the US was a strategic platform of it and both the function and the contribution could not be weighted by the profit only. The branch saw sales exceed CNY 100 million in the first quarter of this year, representing a yearly rise of 80.25 percent, with profit of about CNY 2 million.
It sued both US President Barack Obama and the Committee on Foreign Investment in the US (CFIUS) and said on March 2 that the case on its acquisition of a wind farm in Oregon had been accepted by a court in the US. Xiang said that the lawsuit would not deliver any impact on its investment in the US and the aim for it to do so was to gain a reasonable explaining and some compensations.
It performed well in other overseas markets, too and for instance, it invested USD 200 million in building a R&D and manufacturing base in Brazil in 2010 and in line with Xiang, there were two major reasons for it to inject capital into the market. One was that it was a part of the BRIC and the other was that it had taken the lead to run out of the global financial crisis. Notably, both the 2014 Olympics and the 2016 World Cup would be held there.
