The hottest Zoomlion enters the agricultural machi

Zoomlion's entry into the agricultural machinery market is expected to break the monopoly of foreign giants

Zoomlion's entry into the agricultural machinery market is expected to break the monopoly of foreign giants

China Construction machinery information

two months ago, Zoomlion and Hony capital announced that they would jointly acquire 80% of the equity of Chery heavy industry and fully enter the field of agricultural machinery

two months later, Zoomlion officially launched the brand of "Zoomlion Heavy Machinery" at the "2014 China International Agricultural Machinery Exhibition" with its 47 products, which are products that improve industry supervision and standardize management

experts said that at present, the domestic agricultural machinery market, especially the large agricultural machinery market, is almost monopolized by foreign brands. Zoomlion, together with Hony capital and Chery heavy industry, is expected to break the monopoly of foreign giants, change the existing pattern of China's agricultural machinery industry, and lead agricultural machinery to the high end of the global value chain

foreign giants monopolize the Chinese market

from the weak country of agricultural machinery to the large country of agricultural machinery, and then to the strong country of agricultural machinery, has always been the persistent pursuit of the Chinese people

after 30 years of development, China has achieved a leap forward development from a weak country in agricultural machinery to a large country in agricultural machinery. According to the data of China Agricultural Machinery Association, the scale of China's agricultural machinery market has reached 380billion yuan in 2013 and is expected to exceed 500billion yuan in 2018

China has surpassed the European Union and the United States to become the world's largest agricultural machinery manufacturing country by pressing the calibration key again. But correspondingly, the comprehensive mechanization rate of crop cultivation and harvest in China still needs to be improved. 2 high purity rare earth compounds in 2013, China's comprehensive agricultural mechanization level was about 59%, which was close to 100% in developed countries, and there was still a big gap

this situation also allows foreign agricultural machinery giants to see the huge market space in the future. By the end of 2013, the world's five agricultural machinery giants, including John Deere, AGCO, Keith New Holland, Klass and Kubota, had all entered the Chinese market

Fang constitutional law, vice president and chief engineer of the Chinese Academy of Agricultural Mechanization Sciences, said that with the German krass company entering the Chinese market through the merger and acquisition of Shandong Jinyi group in 2013, the five major agricultural machinery enterprises in the world, including John Deere company, which ranks first in the world, have all "taken root" in China

according to the investment suggestions of Temasek and other international consulting companies, these world agricultural machinery giants have adopted the method of joint venture with Chinese enterprises first, and then become sole proprietorship through thorough acquisition, and then slowly squeeze local capital out of the market

zhangxiaoyu, special adviser of the China Machinery Industry Federation, said, "at present, there is basically no domestic high-power agricultural machinery, and this market is almost completely won by foreign-funded enterprises." China's high-end power machinery and supporting agricultural machinery are dependent on foreign countries by more than 90%

Zhang Xiaoyu, for example, said that after the entry of John Deere company, it quickly acquired the two "pacesetters" of domestic agricultural machinery, including Tianjin tractor factory. At present, the domestic large tractor market with more than 200 horsepower is basically monopolized by John Deere company. The small agricultural machinery needed for paddy field operations in the south, such as rice harvesters, is also basically monopolized by Japan's Kubota company. In such an environment, the market pricing power has already been taken by foreign enterprises

"the domestic agricultural machinery market, especially the medium and high-end, large-scale agricultural machinery market, is still monopolized by foreign brands, which is very similar to the domestic construction machinery industry 20 years ago." Zhan Chunxin, chairman of Zoomlion, said

it is reported that 20 years ago, the domestic construction machinery market was almost dominated by foreign-funded enterprises. In this dangerous environment, Zoomlion was not discouraged at the beginning of its entrepreneurship, and was determined to improve the overall level of China's construction machinery industry and catch up with and surpass the world's advanced level

in 2008, Zoomlion and Hony capital acquired CIFA, the king of European concrete machinery, and gradually grew into a domestic and world-renowned construction machinery enterprise through continuous resource integration. Under the leadership of Zoomlion, China's construction machinery industry has successfully kicked open the door of explosive growth, and the global voice has been continuously enhanced. China has also become the focus of the global construction machinery industry

"China's construction machinery industry from low-end to high-end, from outside the world's top 50 to entering the world's top 10, the realization process is through technological innovation, going out and seizing a good opportunity for China's development." Zhan Chunxin said, "the development of agricultural machinery is also a process. With the acceleration of urbanization, the market demand for agricultural machinery continues to expand. We will seize this demand to develop, and the result will be like construction machinery, it will have its own position in the global market."

Zoomlion has fully entered the agricultural machinery market

then, China's agriculture can collect experimental data in real time. How can the machinery industry successfully break through the encirclement of foreign advanced technologies and products? The strong combination of Zoomlion, Hony capital and Chery heavy industry is a useful exploration and attempt

on August 20, Zoomlion and Hony capital announced in Beijing that Zoomlion had purchased 1.8 billion shares of Chery heavy industry, accounting for 60% of the total share capital, with 2.088 billion yuan, and Hony capital had obtained 600million shares of Chery heavy industry, accounting for 20% of the total share capital, with 696 million yuan

Zoomlion is a leading global construction machinery enterprise. After 22 years of hard work, it has accumulated rich advantages and resources in technology, market, management, culture and so on

Chery heavy industry is a benchmark enterprise with the largest span and a complete range of products in the field of agricultural machinery in China. It creatively realizes the research and development of a full range of agricultural machinery manufacturing products in the whole process of farming, planting, management, harvesting, drying and so on

Hony capital is a top PE with rich experience and resources in capital operation, value discovery, corporate governance and internationalization strategy

"this can be called a strong alliance, marking the landing of Zoomlion's development strategy in the agricultural machinery sector, and the strategic design is gradually becoming a reality." Zhan Chunxin said at the press conference

it is reported that after the merger, Zoomlion will inject the accumulated technology and brand advantages of construction machinery into agricultural machinery, while Hony capital will inject the advantages of capital operation into agricultural machinery

Zhan Chunxin also revealed, "Zoomlion will also put its agricultural machinery resources into Chery heavy industry, including the agricultural machinery Park in Bishan, Chongqing, which will be incorporated into the large network of agricultural machinery and operate according to the unified network."

according to Zhan Chunxin's vision and plan, Zoomlion will, on the one hand, continuously upgrade its products through technological innovation and occupy the medium and high-end market of China's agricultural machinery; On the other hand, we should look for suitable opportunities and partners to go abroad for overseas mergers and acquisitions, and integrate overseas technical resources and market resources

it is worth mentioning that two months later, on October 28, at the "2014 China International Agricultural Machinery Exhibition", Zoomlion agricultural machinery brand "Zoomlion Heavy Machinery" officially appeared with its 47 products, marking Zoomlion's full entry into the field of agricultural machinery

Wang Jinfu, general manager of Zoomlion Heavy machinery, said that China's agricultural modernization and the diversified needs of the broad world market have provided Zoomlion Heavy Machinery with huge development space. Through technological innovation, we will continue to upgrade products and innovate service models to lead China's agricultural machinery to the high end of the global value chain