MUNICH, April 9 (Xinhua) --China's Zoomlion Heavy Industry Science & Technology Co., Ltd, has stressed localization during the process of internationalization, Zhan Chunxin, CEO of Zoomlion, has told the press at the bauma 2019 construction machinery trade fair here.
"Most of our products presented here were produced in Europe by German and Italian companies we have acquired, which shows that Zoomlion's internationalization stressed localization," said Zhan on Monday.
Zoomlion, one of China's largest heavy machinery companies, has made a series of acquisitions, including the purchase of Italy's concrete machinery maker CIFA in 2008; German dry-mixed mortar equipment maker m-tec in 2014; and German tower crane company Wilbert last year.
"We have never sent over anyone from Zoomlion to manage these companies. Instead, we rely on local teams to perform management tasks," Zhan said, adding they consider these companies they have acquired as members of a big family, "there is a lot of trust between us," Zhan stated.
"M-tec is getting a maximum of freedom to define its own business strategy in Europe and other key markets. In fact, m-tec also grew globally by more than 30 percent in the last three years and its profitability is constantly growing," Michael Meding, general manager of m-tec, told Xinhua. "The freedom to manage the global markets independently is encouraging the global m-tec team very much because they feel highly respected and recognized by Zoomlion."
M-tec's sales volume in China has quintupled since 2014, when it entered the Chinese market.
In 2018, the amount of CIFA's sales revenue (excluding in Italy and China) of the total revenue rose to 79.2 percent from 46.3 percent before the acquisition, and Zoomlion's competitive products, such as truck cranes, catwalk cranes or tower cranes, have been produced in Italy.
The Chinese and Italian machinery makers stepped up technical cooperation and harnessed more business opportunities under the the Belt and Road Initiative.
The new all-terrain truck crane jointly developed by CIFA and Zoomlion made its debut at the bauma trade fair. This machine exemplifies CIFA's business expansion as well as Zoomlion's efficient collaboration with CIFA.
The German bauma trade fair is held every three years in Munich. This year it is open on April 8-14.