Xugong counters the killing and heavy truck market and put into production in the first quarter of 2014

The downturn in the machinery industry did not affect the Xugong Group's adverse market layout.

On January 12, Xuzhou High-tech Industrial Development Zone and the XCMG heavy-duty truck production base laid the foundation for the official start of construction. After the project is completed, it will form an annual production capacity of 60,000 heavy trucks and 80,000 engineering machinery cabs.

The reporter learned from Xugong Group's official website that the Xugong heavy-duty truck production base project is implemented in two phases: the first phase covers an area of ​​more than 1300 mu and the building area reaches 500,000 square meters. The total investment is nearly 4 billion yuan, of which the total construction investment is 2 billion yuan. It is expected that the first quarter of 2014 will be officially put into production; the second phase of the project will be launched in 2015, focusing on the development of core parts and components for automobiles and construction machinery, and will strive to achieve a sales target of over 10 billion in three years or so.

The heavy truck market is not only a “barometer” of the macro economy, but also a frontier field of the machinery industry. At present, domestic orders and sales volumes are at low levels. The Dongfeng Group, which has performed the best, sold more than 100,000 heavy trucks last year. Other companies such as CNHTC and FAW sold less than 100,000 vehicles, and more companies sold even less. "The heavy trucks have developed in the past two years, and the manufacturing strength and brand reputation of each leading company have been affected." Xie Jiaxuan, a research fellow of China Investment Consulting Machinery Industry, told the reporter.

According to Wang Min, Chairman of XCMG, the downturn in the industry is bringing development opportunities to XCMG. “Although the current heavy-duty truck market is relatively sluggish, it is a huge and promising equipment industry with a huge stock market”.

The reporter learned that the leading seats in the domestic heavy truck market have been occupied by Dongfeng, Zhongqi, FAW and other companies. The top ten companies in the market occupy more than 95% of the market share. Although XCMG has a heavy truck product line, its market share and Dongfeng Such companies are far apart.

Xie Jialu believes that XCMG’s development of heavy trucks at this time is not only an optimistic attitude towards the macro economy, but also a weak state of the market competitors, which is conducive to its strong resource strength and competition for a place.

He said that the macro economy showed signs of recovery in the second two quarters of 2012, and the emphasis of the 18th National Congress on urbanization will fully open the infrastructure market, and the turning point for the heavy truck market will also come soon. In the second half of 2012, the National Development and Reform Commission approved and approved 25 rail transit and rail line projects, and approved 13 major highway projects and seven state-level major projects such as port construction.

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