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Chinese construction machinery giant forecasts US$250 million Middle East earnings for 2007.
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| 7 Aug 2007 |
Xuzhou Construction Machinery Group plans $15m Dubai logistics centre and says Big 5 PMV can help it capitalise on regional construction boom. China's biggest manufacturer of construction machinery is forecasting earnings of US$250 million from the Middle East this year and is to invest US$15 million to build up a regional logistics centre in Dubai to boost support to its clients.
Xuzhou Construction Machinery Group (XCMG), the world's No.1 hydraulic truck crane manufacturer which will produce 10,000 units this year, made the double announcement after confirming its place in an impressive international line-up of exhibitors for the Big5 PMV.
The Chinese construction machinery giant believes the new showcase event for plant, machinery, construction vehicles and equipment suppliers, taking place at Airport Expo Dubai from 25-29 November, can provide a platform towards more significant business gains.
"The Middle East is our most well established and fastest-growing overseas market," said Mr Qi Hong, XCMG's Regional Director, who is also the standing director of the China Business Council of the UAE.
"We have sold more than US$400 million dollars worth of products in the Middle East over the last three years, and we're hoping for earnings of US$250 million in the region in 2007. The Big5 PMV is a very important event for us because it will allow us to promote our products from across the Middle East and other parts of the world."
"Supporting our regional offices in Dubai and Sharjah we have a network of dealers and service centres across the Middle East and Africa and the next step is to open a logistics centre in Dubai to boost service to our clients and grow our business more in the region." The company is seeking a 20,000 sq metre site in Dubai and hopes it will be in operation within a few months.
China is one of 18 countries represented in the Big5 PMV exhibitor line-up which is rapidly approaching the 100 mark with leading players like Al Futtaim Auto & Machinery Company, Frutiger, Teufulberger, Construction Machinery Center and Mohamed Abdulrahman Al Bahar.
Giving a new dimension to the Big5, the Middle East's most influential construction and contracting Expo, the event is being launched at a time when more than 2,100 existing and planned projects valued at US$1.2 trillion are under way in the region.
"Current forecasts say that Middle East demand for construction machinery will increase by up to 20% over the next five years," said Nick Webb, Director of Streamline Marketing Group, which is organising the Big5 PMV in conjunction with dmg World Media. "This will rise as more of the region's enormous infrastructure and expansion plans unfold, and as well as established leading players like Xuzhou, we're attracting companies that want to use the event to break into the lucrative Middle East market."
In addition to cranes, XCMG's product line includes wheel loaders, rollers, graders, excavators, bulldozers, asphalt pavers, concrete pump, mixer and drilling rigs. The company's main Middle East clients include leading construction companies and trading houses across the area.
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