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2022-08-19
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Sany Internationalization: stand on the shoulders of German elephants

Sany Internationalization: stand on the shoulders of German elephants

China Construction machinery information

Guide: internationalization has defeated many excellent Chinese enterprises. Now Sany, which has won the first place in the domestic market, how to sing this international song? At the beginning of April 2012, two months after Sany Heavy Industry acquired Putzmeister, Germany, Sany headquarters in Changsha was still immersed in

internationalization has brought many excellent Chinese enterprises to the battlefield. Now Sany, which has won the first place in the domestic market, how to sing this international song

At the beginning of April 2012, two months after Sany acquired Putzmeister, Germany, Sany headquarters in Changsha was still immersed in joy. Sany employees, admired by Changsha people, have more face in front of relatives and friends because of this overseas acquisition. "Sany has become a large international company", which is more glorious than "working in a foreign enterprise, and our motivation is more sufficient". An employee told Sino foreign management

however, in the consideration of Founder Liang Wengen, the acquisition is certainly not to earn face, but directly connected with the long-term strategic goal of Sany group. 90% of the materials are made of metal. In Liang's view, if there is no internationalization, Sany is at most a larger self-employed. In the medium-term plan of Sany group, the sales target of 100billion yuan will be achieved in 2012, while the overseas market will account for about 30% in 2015 - previously, Sany's overseas sales accounted for only about 5% of the total. Strictly speaking, Sany is not an international company. The acquisition of German "elephant" at the beginning of the year gave Sany people hope

strategy determines the survival of an enterprise. The senior management of Sany regard internationalization as a hard battle that must be fought, and call it the third venture after it was founded in 1989 and listed in 2003. Why did Sany, which has always paid attention to endogenous growth overseas, make a quick move this time? Internationalization has made many excellent Chinese enterprises dream of going abroad. Can Sany's overseas strategy win by surprise

stand on the shoulders of German "elephants"

in fact, Sany has been internationalizing for 10 years, and it has not been smooth all the time

data can't lie: Sany group's sales reached 10billion yuan in 2007 and jumped to 80.2 billion yuan in 2011, while the business performance in overseas markets has been declining. After the outbreak of the global financial crisis, the overseas business income of Sany Heavy Industry (Weibo) decreased from 3.464 billion yuan in 2008 to 2.131 billion yuan in 2010. It did not rebound until 2011, and the international business achieved an operating revenue of 3.425 billion yuan, an increase of 60.72% year-on-year

Xiang Wenbo (Weibo), President of Sany Heavy Industry, explained that after the crisis in 2008, foreign demand was sluggish and efforts were made to develop energy-saving and environmentally friendly high-function materials, while the growth of China's construction machinery market has exceeded that of overseas markets in recent years

although this reason is obvious to all, the purpose of investment is not to float. Since 2003, Sany has established nearly 170 sales branches around the world. From 2006 to 2011, Sany Heavy Industry has successively invested in the construction of overseas industrial bases in India, the United States, Germany, Brazil and Indonesia, and until now, the return is very little

for Sany, which has been exploring for many years, it is in urgent need of breaking the situation in the overseas market at this time

opportunity pity. Sany, which has been struggling to find a suitable acquisition object, finally waited for the news that tipster was interested in selling in 2011, which of course also attracted the attention of domestic and foreign construction machinery industry giants, including Zoomlion, caterpillar and Komatsu manufacturing

finally, after communicating and visiting with Sany, the founder of "elephant" schleicht and CEO Norbert Xiaoyi overturned their previous impression of China's world factory and fell on Sany

"schleicht believes that the cooperation between our two countries' is an inevitable event '". Tangxiuguo, President of Sany group, proudly told Sino foreign management, "in the whole process, Norbert Xiaoyi, CEO of elephant, said that he only negotiated with Sany and did not negotiate with anyone else. That's it."

in fact, for Sany, the acquisition of German "elephant" also has deeper strategic considerations

around 2005, Sany group has made some progress in internationalization, but it is concentrated in South Asia, the Middle East and North Africa, with a small market share. At this time, out of strategic considerations, chairman Liang Wengen and sany president Xiang Wenbo decided to export their products to Europe. After all, Europe is the source and heart of construction machinery, and its market share of construction machinery accounts for more than 1/4 of the global share

however, Europe has formed a multi legged situation, such as Putzmeister, Komatsu and caterpillar. Compared with these competitors, Sany still has a big gap in cutting-edge technology and research and development, international operation and management experience, and understanding of the European business environment

but to achieve internationalization, the European market must be won. Therefore, Sany chose to build a factory in Germany, the capital of construction machinery, in 2008. It is a great challenge to enter Germany and establish a new factory. As he Dongdong, the managing director of Sany Germany Co., Ltd., said, even the recruitment has become "the interview of candidates for several hours". Eliminating the prejudice of local people against Chinese brands has become the biggest challenge

now, the situation is completely different

"in the construction machinery industry, Sany is like a young man under the age of 20, but compared with Putzmeister, who is in his 50s, Sany lacks rich experience, global brand influence, high quality and long-term accumulation of leading technology." Xiang Wenbo said. According to the data, Putzmeister has set up production bases in the United States, Brazil, India, Spain, Russia, South Korea and other countries, and set up marketing points in more than 50 countries such as Italy, Canada, Argentina, Malaysia and so on. The acquisition of Putzmeister is equivalent to changing the position of Sany in the competition pattern of construction machinery. Some analysts pointed out that Sany's first overseas acquisition will expand its overseas sales by about three times

"through this acquisition, Sany Heavy Industry has indisputably owned or become a world-class brand." Xiang Wenbo expressed this

this merger and acquisition case has accelerated the internationalization process of Sany for 5 to 10 years

strategy first

"enterprise strategy needs to follow the general trend, and sany, which focuses on endogenous growth, will not give up such a good M & a opportunity." Talking about the latest merger and acquisition that caused a sensation in the industry, Tang Xiuguo, President of Sany group, told Sino foreign management

of course, it's not just a merger case. Maybe you can understand it as the starting point of Sany's new strategy

in fact, the first two startups in the history of Sany, whether they were started in 1989 or listed in 2003, all benefited from the correctness of strategic choices

In 1986, Sany's predecessor was just a welding material factory located in a small mountain village in Lianyuan, Hunan Province, which started by manufacturing artificial diamonds and special materials. In those years, although the profits were not cheap, Liang Wengen, the founder with great "ambition", was very distressed: as a private enterprise in Hunan, Sany and Yuanda air conditioning started almost at the same time. Why can Yuanda achieve 2billion yuan at once, while Sany is less than 100million yuan? Even if the diamond market in the country is monopolized, it is only 1billion yuan. The reason lies in the limited industrial expansion space selected by SANY, coupled with the remote location of Lianyuan, inconvenient transportation, and the restricted business environment, which cannot breed world-class enterprises

In 1991, Xiang Wenbo joined the Sany team. His ideas coincided with Liang Wengen's, and they both believed that there was an urgent need to adjust the strategy. After more than two years of research and expert demonstration meetings, Liang Wengen finally agreed with Xiang Wenbo's "double entry" strategy: enter the central city - Changsha; Enter the big industry - construction machinery industry

whether it is good or not is simple and clear, and the site selection in that year is also quite strategic. Liang Wengen finally decided to set Sany headquarters in Xingsha Town, Changsha, which was not impressive at that time. "At this position, the plane flying overhead can be seen, and the train passing under my feet can be seen. I want everyone passing here to see Sany." Liang Wengen said at a classmate gathering that year. Now, driven by SANY industrial city, Changsha Economic and Technological Development Zone in Xingsha town has developed into a modern industrial base. Looking back today, the "double entry strategy" of that year is a strong supporting force for march forward to the field of China's construction machinery

then, the listing and non tradable share reform have become a new starting point for Sany's entrepreneurship. To grow and develop, an enterprise must have a strong capital market and more financial support, and listing is a good way, and it can even reverse the fate of the enterprise

the growing Sany began to try to take the road of listing and financing. On July 3, 2003, in the Shanghai Stock Exchange, Liang Wengen, chairman of Sany Heavy Industry, sounded the gong for the listing of Sany Heavy Industry, which became the first private listed company in the construction machinery industry. In 2005, it coincided with the split share structure reform of China's capital market. At that time, the market was full of doubts, and Xiang Wenbo made clear to the securities regulatory department: "when Sany was founded, we expressed our desire to make first-class contributions, and we are willing to be a 'test field' for China's securities market reform!" On June 10, 2005, Sany's share reform plan, which actively raised the threshold of share reduction and made commitments to increase two important conditions for share reduction, was passed by a high vote, and sany officially became the "first share of China's share reform"

facts have proved that the Sany share reform has greatly promoted Sany to a new level. By 2011, the market value of Sany had increased 38 times in the eight years since its listing, and the share price had risen more than a dozen times. In the 2011 Financial Times global top 500 ranking, Sany Heavy Industry was listed in the global top 500 for the first time, ranking 431st, becoming the first enterprise in China's construction machinery industry and the first enterprise in China's machinery industry to enter the world's top 500. "To some extent, market value ranking can better reflect the competitiveness and brand position of enterprises than simple sales ranking." Tangxiuguo, President of Sany group, said

Sany, which has experienced many tests, has now reached its most important node - internationalization. Internationalization has brought many excellent Chinese enterprises to the battlefield. Sany has always adhered to "sing the national anthem before the international Anthem". Now Sany, which has achieved the first position in the domestic market, how to sing this international song

after the break

after announcing the acquisition of Putzmeister, Germany at the end of January, Sany made another move in its overseas layout. On February 28, Sany and Austrian parfiger group, an international crane giant, established two joint ventures. One of the joint ventures, Sany parfiger Special Vehicle Equipment Co., Ltd., is located in Changsha, with a total investment of 900million yuan and a registered capital of 300million yuan. Another joint venture company is located in Austria, with a total investment of 4million euros and a registered capital of 2million euros. Both sides of the two joint ventures hold 50% equity respectively

"Sany's overseas strategy has been accompanied by independent factory building, overseas mergers and acquisitions, and the establishment of joint ventures." Tang Xiuguo said. Previously, in January 2009, Sany invested 100million euros to establish a European R & D center and machinery manufacturing base in Cologne, Germany. In 2012, Sany had another

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