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Chinese heavy equipment manufacturers are gaining renewed momentum internationally, despite ongoing pressures of global trade de-globalization. Companies like Shandong Heavy Industry Group and its subsidiaries are experiencing rapid export growth through continuous innovation and enhanced product competitiveness, according to company executives.
Revenue from exports for Shandong Heavy increased by approximately 6 to 7 percent in the first nine months, reaching CNY 72.7 billion (about $10 billion). The company is on track to meet its full-year export target of CNY 100 billion (roughly $13.8 billion).
Over the past five years, exports from the Jinan-based firm have quadrupled. Expanding markets in the Middle East, Africa, Southeast Asia, Latin America, and other regions are opening up new opportunities for Chinese equipment manufacturers, the company’s deputy general manager noted.
Despite challenges presented by domestic and international economic uncertainties and increasing competition from the electric vehicle sector, business remains resilient and steady. The chairman of Weichai Power, which produces engines for Shandong Heavy, reported that in the first half of the year, operating income rose 6 percent year-over-year to CNY 250 billion (about $34.5 billion).
The growth of emerging industries has created new avenues for Weichai Power. The surge in artificial intelligence applications is fueling demand for data centers that utilize large-bore diesel engines as backup power sources. The company seized this opportunity, with sales of these engines increasing fivefold during the first three quarters compared to the previous year.
Future expansion is expected to predominantly come from exports. Engine exports from Weichai Power increased over 30 percent from January through September compared to the previous year, reaching a record high.
The chairman of Weichai’s agricultural machinery subsidiary, which invests CNY 1 billion (around $138 million) annually in research and development, explained that the company focuses on markets in China, Japan, and Europe.
Shandong Heavy’s Sinotruck Group, a producer of heavy-duty trucks, reported a 24.5 percent increase in exports during the first three quarters, totaling 111,000 units — maintaining its position as China’s leading heavy-truck exporter. In September alone, the company exported over 15,000 units, setting a new monthly export record. Export volumes to Africa rose by 37.4 percent, Southeast Asia by 41.5 percent, and the Middle East by 28.7 percent.
Another subsidiary, Zhongtong Bus, recently secured large orders from regions including the Middle East, Kyrgyzstan, and Chile. Its chairman emphasized that the company dedicates over 5 percent of yearly revenue to research and development and has established a specialized product development system targeting overseas markets. Products are tailored to regional requirements, such as buses capable of enduring Dubai’s high temperatures and sandy conditions or routes like those in Chile.
Looking ahead, Shandong Heavy plans to deepen its understanding of international market needs and accelerate product upgrades. The general manager revealed that as the company advances its localized vehicle and machinery production, it will also assist suppliers in expanding globally.
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