Export ambitions

Shantui is China's largest dozer manufacturer and is exporting an increasing share of its production. Like many of the country's larger industry players, the company has ambitions to establish itself as a global force in the industry.

Executive vice president Jiang Kui told iC, “Our intention is to be an international construction equipment manufacturer. In the past we have just looked at dozers, but it's a small market, so we will look at developing other products like road equipment.”

Li Dianhe, the company's general manager responsible for exports added, “We are a leading Chinese exporter – we have a 65% share in the number of dozers exported from China. It was 80% in 2004, but other companies have started to export since then. Our products have been exported to more than 100 countries. Our best region is Africa, followed by Asia and South America.

“This year we will export more than 1500 units – more than a third of our production, and that percentage is increasing every year.”

At the moment the company is focused on other developing markets, and is considering building its first plant outside China.

“There are four possibilities – India, the Middle East, North Africa or Russia. Russia is interesting – there is a big demand for dozers so we will think about setting up an assembly line there.

“We focus on markets where there is demand, but they also have to have the money to buy our equipment. There are lots of poor countries that need our machines, but can't afford them,” said Mr Jiang.

However, the prospect of selling machines in the European Union or North America is a more distant one, due to their stringent engine exhaust emissions regulations.

“It is difficult to meet the requirements for Europe and North America, because dozer engines need to produce high torque at low revs. None of the engine manufacturers in China supply those types of engines – they are focused on the excavator market where the requirement is for higher revs and lower torque. However, there may be suitable engines available for us in 2008,” said Mr Li.