Chinese heavy machinery supplier targets counties

Chinese heavy machinery manufacturer XCMG is targeting a growing infrastructure works in counties in a drive that look set to intensify a price war in the sale of equipment like excavators, graders and cranes.

The firm is seeking deals with contractors working in counties in the quest for billions of shillings the national and county governments are spending to revamp roads and other infrastructure in what is lifting demand for affordable earth-moving gear.

The building of storied buildings in counties has created demand for equipment like excavators, loaders and dump trucks, attracting the eye of firms like XCMG — which is now the sixth-largest equipment maker globally.

The Chinese multinational is seeking a larger share of heavy equipment pie in line with the global trend where it’s eating into the market of dominant operators like Caterpillar, Komatsu and South Korea's Hyundai Heavy.

Emanuel Masika, XCMG general manager for machines sales, told the Business Daily that counties are the new frontier for growth for equipment makers.

“We are seeing more business in the counties on the rising infrastructure and building activities and we are going big for this market,” he said, adding that market share growth will hinge on their global strategy of quality equipment and pricing.

Contractors reckon that peopled are starting to like Chinese products because "they are almost as good as those made by Western companies, but 30 percent cheaper".

XCMG will this Saturday host an open day for contractors, engineers and other building professionals as well as bureaucrats to showcase its product range.

The firm is also offering a credit scheme where contractors can acquire equipment and pay for years.

Kenya had roads projects under construction worth Sh303 billion last year, up Sh59.3 billion in 2016 with the bulk of the road works happening in counties.

This are the billions of shillings that attracting firms like XCMG to counties.