The mobile crane industry welcomed the start of the Chinese government’s 11th five-year plan in 2006 with a historic high: 17,400 units sold, up 34% compared with 2005. The growth spurt came a year after the government stepped in to slow down the economy. The mobile crane and mobile lifting equipment business was worth more than RMB10bn ($1.26bn), up 52% compared to 2005, according to statistics from the hoist branch of the China Construction Machinery Association. Total profit was almost RMB900m ($113m), jumping 168% over 2005. Half-year figures from 2007 suggest that the market will have grown 25% by the end of the year.
Truck cranes dominate the market: sales account for more than 80% of the mobile crane market share. The main products have been medium and small-capacity cranes. Since 2003, their annual sales volume has exceeded 10,000 units. Now, there are a total of 16 models available in the marketplace, with capacities ranging from 8t to 130t. Recently, the average capacity of cranes sold has crept upward: growth in the smallest cranes have been declining, and sales of large truck cranes over 100t capacity have grown.
The main cranes for two-axle commercial truck chassis are 8t and 12t cranes. This segment did not grow in 2006. Cranes with capacities of 16t, 20t and 25t are the principal models for cranes on three-axle specially made carriers. More than 3,000 16t and 25t truck cranes were sold in 2006. Four-axle truck-cranes, primarily with 50t cranes, grew in 2006 to 1,300 units. Five-axle truck cranes sold about 100 units, but sales are hurt because the odd number of axles creates problems balancing axle loads.
A few manufacturers dominate Chinese truck crane production. Although there are more than a dozen truck crane manufacturers in China, the top four companies account for more than 80% of market share, and this is growing. They are, in size order, Xuzhou Heavy Machinery Co (part of diversified construction equipment manufacturer XCMG), which has more than 50% market share in China, Zoomlion Puyuan, Terex Changjiang and Shandong Tai’an.
All terrain cranes are not very popular. Because of their high technology, their price (and investment risk) is higher, and this has impacted heavily on sales. This is likely to continue to be the case for a long time. Domestic sales of ATs did grow slightly in 2006, mainly because of a long supply delay for imported ATs. Xuzhou Heavy Machinery, in particular, has made seven models of AT from 25t to 300t capacity, and sold nine units in 2006.
Domestic crawler sales are growing rapidly. Large petrochemical, energy and municipal projects have stimulated huge developments in the crawler crane market. In the past, the Chinese market relied on imports for middle- and large-capacity crawlers. But in recent years, domestic manufacturers have developed 14 models of crawler crane, with capacities from 35t to 600t (35t, 50t, 70t, 80t, 100t, 150t, 160t, 200t, 250t, 300t, 350t, 400t, 450t, and 600t). These high-technology crawler cranes have similar properties to advanced foreign products, but have independent intellectual property rights.
Eighty percent of domestic crawler cranes are under 100t, although manufacturers Fushun Excavator Corporation, Xuzhou Heavy Machinery, Zoomlion Puyuan and Sany have been actively researching and manufacturing large crawler cranes.
The domestic brands have a certain competitive edge compared with overseas brands in middle and small cranes. Nowadays, more and more domestic companies are making crawler cranes. But there is a long way for Chinese manufacturers to go to catch up with international competitors. “We should be aware that the crawler crane is not only a traditional product, but also a product based on long-term experience. The combination of rich theoretical and practical knowledge is the significant factor for crawler cranes,” said a manager from a foreign crane manufacturer. “Some important raw materials, such as HSLA (high strength low alloy steel), and hydraulic components have to be imported. China will not be able to achieve international standards for these in a short time.”
Another fast-growing mobile crane market segment, on the back of China’s growing logistics industry, is truck loader cranes: unit sales grew 46.5% in 2006 compared with 2005. The most popular loader capacities are 5t, 6t and 8t. The largest producer is XCMG’s Xuzhou Truck-mounted Crane Co, with 38% market share, followed by Hebei Jeng Shijiangzhuang Coal Mining Machinery (27%) and Mudanjiang Special Truck Co, at 11%.
XHMC’s crane spread at Bauma China 2006 XHMC’s crane spread at Bauma China 2006 Truck crane market share Truck crane unit sales Mobile crane production
