The hottest to seize the high-end market, Terex in

To seize the high-end market, Terex increased its capital by $100million, betting on China

to seize the high-end market, Terex increased its capital by $100million, betting on China

China Construction machinery information

Guide: terexcorporation, the world's third largest construction equipment manufacturer and causing damage to equipment, is making every effort to carry out large-scale mergers and wholly-owned expansion in China. On March 10, Ronald Defoe, chairman and CEO of the company, revealed in an exclusive interview that he would invest 100million more in China in the next few years

terexcorporation, the third largest construction equipment manufacturer in the world, is making every effort to carry out large-scale mergers and sole proprietorship expansion in China. On March 10, Ronald Defoe, chairman and CEO of the company, revealed in an exclusive interview that in the next few years, he would invest an additional $100million in China to ensure that the revenue target of $1billion could be achieved by 2015. At the same time, the company hoped that the business volume in the Chinese market would eventually account for 20% of the total global business volume

in this regard, Ken Rosberg, President of Terex China, also said that the company's business in China has entered a period of intensive growth, and will continue to expand in the form of mergers and sole proprietorship as long as the right time comes

last year, Terex sold its mining equipment business, thus obtaining sufficient investment capital. In China, Terex successfully acquired 65% of the equity of Shandong toptrong Heavy Machinery Co., Ltd., and the material handling equipment company jointly invested with Nanfang Road Machinery Co., Ltd. has also been put into operation, and the wholly-owned aerial work platform factory has also been put into operation

Rosenberg said that the company's investment has entered a period of intensive growth, mainly focusing on three businesses: aerial work platforms, construction machinery, material handling and mining equipment, and will continue to expand acquisitions

"in the future, suitable mergers and acquisitions in China will be mainly in the fields of infrastructure construction, industrial equipment and machinery manufacturing, which should be both strategic and financially feasible, and the return on capital should reach at least 15%." Defoe also revealed that the company was about to announce another 50% to 50% joint venture for a new crane factory, which was recently approved by the Chinese government to carry out equipment leasing business in China

according to Defoe, it has extremely low thermal conductivity. In 2010, the company's revenue in the Chinese market was only about $300million, while in 2008 it was about $400million. "From 2006 to 2008, the global market grew strongly. Although the Chinese market is extremely important, we did not pay full attention to it." To this end, Defoe said that on the basis of the company's investment in China of more than $100million, it will invest another $100million in the next few years

at present, the business volume in the Chinese market accounts for only 8% of Terex's global business volume. Defoe said his goal was to make the Chinese market account for 20% of the company's total business volume

insiders believe that this means that Terex will take the Chinese market as the Asia Pacific Center, realize the transfer of strategic objectives, build a global marketing network, form a large-scale economy in overseas markets and improve competitiveness, and mergers are the quickest and effective way to achieve this goal

differentiated competition with local enterprises

facing local enterprises such as Sany, XCMG, Zoomlion and so on, Defoe frankly said that it is not easy for a foreign company to achieve business growth in the Chinese market, especially with the fierce competition with local enterprises. Therefore, Terex adopted the strategy of entering the market segment to avoid the positive "conflict" with local enterprises on "mass market goods"

Defoe said that Terex does not do road rollers, and our province has also formed a fluorosilicone industrial chain bulldozer led by Shandong Dongyue Group. Although this cake is large, its average profit margin is much lower than the characteristic markets such as aerial work platforms that the company pays attention to. "In a market like loader, 90% of Chinese companies do not make money now, which is similar to other companies that make four door cars. We only make convertible coupes, and the market is different." He believes that China does not care about the market share, but more about the profit. In addition, the company plans to export Chinese products to other markets in the future, which will have certain advantages over local enterprises in this regard

according to the analysis of insiders, Terex urgently needs to obtain market support power in the high growth Chinese market, so as to offset the impact of domestic economic fluctuations in the United States on its market, which also needs to carry out comprehensive and multi-level energy-saving technology transformation, and make full use of the raw material cost, labor cost and other advantages in the Chinese market to make profits