Thu, January 26, 2012
Business > Industries

Chinese companies show muscle in U.S. dominated construction industry

2012-01-26 01:20:43 GMT2012-01-26 09:20:43(Beijing Time)  Xinhua English

LAS VEGAS, Jan. 25 (Xinhua) -- The construction industry is traditionally dominated by U.S. companies, but at least one Chinese company, Sany Group, has made headway in its intention to get access to the U.S. market.

At the World of Concrete trade show held here from Tuesday to Friday, Sany's exhibits have occupied a significantly large space, which is larger than most of the U.S. companies.

"That shows our strength. Sany is the largest heavy construction equipment manufacturer in China and with the establishment of its North American headquarters, it has the intention to become one of the major companies in the construction industry in the U.S., " Donald Kibble, chief engineer at Sany, told Xinhua on Wednesday.

Sany Group began in 1989 as a small welding material factory. Now it has grown into a global corporation with five industrial parks in China, four manufacturing bases in America, Germany, India and Brazil, and 24 sales companies around the world. Currently Sany employs nearly 70,000 people in more than 120 countries.

"Sany has invested 60 million dollars to build a state-of-the-art manufacturing, distribution and operations facility on 250 acres in Peachtree City, Georgia in the U.S. in an effort to get access to the U.S. market. Now Sany has 130 employees in the U.S. but soon when the manufacturing facility is completed, we will employ several hundred U.S. workers. We are creating jobs for the U.S.," said Kibble.

Sany demonstrated a concrete pump at the World of Concrete trade show. According to Kibble, it is the largest truck mounted concrete pump with an 86M reach and 313 cubin yard per hour pump kit.

According to Kibble, Sany Traier Mounted concrete pump breaks the world record for vertical concrete placement at the Shanghai World Financial Center, which reaches a height of 1,614 (492 meters) feet.

"We want U.S. market but at the same time we create jobs for Americans," said Kibble.

While Sany can compete with major U.S. companies, Hebei Shuangfei Fastener Co., Ltd. is a small company. For the second year, this company has sent representatives to the World of Concrete Show.

Han Bing, sales manager from Hebei Shuangfei Fastener Co., told Xinhua that it is a good chance for small companies like his to come to the United States to learn from his U.S. counterparts.

When he goes back to China, he would propose ways to improve his products, said Bing.

About 10 small companies like Hebei Shuangfei Fastener Co. have come to Las Vegas to demonstrate their products.

Bing said he is confident that the Chinese made products still can win U.S. customers because labor cost in China is still comparatively low. If Chinese factories continue to manufacture top quality products, he is not afraid of American manufacturers.

"I do not think Americans will manufacture such tools because their labor cost is too high," said Bing.

Bing said there is no way American companies will manufacturer those low-tech products. If labor costs continue to increase in China, those U.S. companies would get them manufactured in Vietnam, Russia or other countries but not in the United States.

U.S. President Barack Obama was talking about creating jobs for Americans in his State of the Union address Tuesday by encouraging U.S. companies to manufacture their products in the United States rather than in China and other countries. But Topcon, a U.S. company in the construction industry with many products manufactured in China, said the company is unlikly to make any changes in the near future.

Jason Killpack, director of business development at Topcon Positioning Systems, Inc., told Xinhua Wednesday the company produces about several dozen categories of its products in China, since most of those produced in China are not very sophisticated technologically, he does not think the company will change its policy.

"We can not manufacture those products with the same costs as we made them in China," said Killpack.

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