On October 11, Official Application of XCMG Europe GmbH New Address & Opening Ceremony of XCMG European Centre and XCMG European Purchase Center was grandly held in Krefeld City, Nordrhein-Westfalen (NRW) State of Germany, and attended by nearly 300 persons, including Head of NRW State Economic Department Garrelt Duin, Chairman of NRW State Investment Support Agency Petra Wassner, Mayor of Krefeld City Gregor Kathstede, Consul General of Chinese Consulate General in Frankfurt Wen Zhenshun, Chief Representative of Jiangsu Provincial Department of Commerce’s Europe-based Representative Office Ding Dagang, leaders of XCMG, as well as representatives from German Government, industrial & commercial circle, XCMG’s European cooperative partners, German media, and XCMG’s subsidies and branches in Europe etc. On behalf of their respective sides, Deputy General Manager of XCMG Li Suoyun and Mayor of Krefeld City Gregor Kathstede signed an agreement of cooperation between XCMG and Krefeld City.
As a wholly-funded subsidiary of XCMG in Europe, XCMG Europe GmbH is XCMG’s regional headquarters in Europe and serves as its strategic investment and business & shareholding platform in Europe. So far, XCMG Europe GmbH has established three subsidiaries, namely, Netherlands-based AMCA Hydraulic Fluid Power BV, and Germany-based XCMG European Research Center GmbH and XS Holding GmbH. Herein, Netherlands-based AMCA Hydraulic Fluid Power BV is a small-scale technology firm that is engaged in providing high-end hydraulic valve, XCMG European Research Center GmbH is XCMG’s first overseas R & D institute that is committed to developing hydraulic system and parts technologies for construction machinery, and XS Holding GmbH is a JV firm between XCMG and Schwing and wholly controls Schwing.
In Europe, XCMG adopts a long-term and stable development strategy. Over the past 20 years, XCMG ever cooperated with lots of famous European companies, such as LIEBHERR, ThyssenKrupp, Bosch Rexroth, and ZF Friedrichshafen etc. Since 2010, XCMG began to accelerate its investment in Europe, and its total investment in Europe from 2010 to 2013 amounted to about EUR 260 million.
XCMG’s investment events include: acquired the entire Netherlands-based AMCA Hydraulic Fluid Power BV in 2010; acquired the entire Fluitronics GmbH from 2011 to 2012; set up XS Holding GmbH with Germany Schwing in 2012, of which, XCMG held 60% stake of this JV firm, and XS Holding GmbH wholly controlled Schwing GmbH; XCMG invested in building its European headquarters XCMG Europe GmbH during 2011-2013, and invested in establishing XCMG European Research Center GmbH in 2013. Through the above-mentioned investment, XCMG expanded its staff size in Europe to more than 1000 persons, 98% of whom were employed locally.
In June 2013, XCMG won the “Best Investment Prize” from NRW State of Germany.
In light of its ultimate goal, XCMG vows to rank into the “World Top 3 Construction Machinery Vendors” and turn into the world tiptop construction machinery manufacturer. To achieve this goal, business globalization and European market will be of strategic significance. With incorporation of XCMG Europe GmbH, XCMG European Research Center GmbH, and XCMG European Purchase Center, XCMG is bound to achieve leap-forward development in terms of strategic investment, key technologies R & D, and core parts supply chain management, and high-end market supply.
XCMG will make full use of Europe’s advantaged infrastructure, work with famous universities, employ high-level engineers, and join hands with competitive suppliers, in an effort to give full swing to Europe’s abundant and outstanding environmental resources.
In his speech, Deputy General Manager of XCMG Li Suoyun said: “‘Investment, integration, and innovation’ is the conclusion and outlook for XCMG’s entry into Europe. We look into the future and constantly promote the investment, so as to shore up the first step. We hope to establish a sustainable firm in Europe and make contribution for local society’s harmony and happiness. To merge into Europe, we are in an effort to boost integration between XCMG and European enterprises, between Chinese engineers and European engineers, and between global market and European technologies. We hope that innovative events here will be developed vigorously, and synergic cooperation between XCMG and its European partners will lead to innovations in strategy, management, products, technologies, and purchase value chain, and in turn facilitate us to provide global customers with value-added and high-quality products”.
