XCMG solidifies economic cooperation

Since Xuzhou Construction Machinery Group's inaugural entry into the Brazilian market with its first wheel loader in 2000, XCMG's subsidiary in Brazil stands as a shining example of economic cooperation between China and Brazil, embodying a profound testimony to the enduring friendship between the two nations.

XCMG Brazil Manufacturing Co Ltd, the pioneering wholly-owned overseas subsidiary of the Chinese heavyweight manufacturer based in East China's Jiangsu province, has emerged as the largest manufacturing hub for the Chinese construction machinery industry in South America.

It is also China's premier overseas industrial park dedicated primarily to construction machinery.

Positioned with a mission to "strengthen Brazil, expand in South America and support Central and North America", XCMG Brazil, spanning 800,000 square meters, integrates research and development, production, sales, service, spare parts and financial services.

In May 2011, the XCMG Brazil manufacturing base project was signed, with construction commencing at the end of 2012 and officially starting production in 2014.

The first phase of the base project, with a total investment of $200 million, has completed the construction of four manufacturing plants covering 140,000 square meters.

Li Hanguang, general manager of XCMG Brazil Manufacturing, said that since the start of operations in 2014, XCMG Brazil has achieved a compound annual growth rate of 41 percent in operating income.

"In 2023, sales increased by 20.52 percent year-on-year while revenue grew by 29.62 percent, and profits reached a historic high," said Li. "In the first half of this year, despite a more competitive market environment, XCMG Brazil's income increased by an additional 27 percentage points."

Currently, XCMG products are widely used in various projects in Brazil including road construction, port upgrades, hydroelectric projects, agricultural development and urban infrastructure construction. XCMG equipment can be found in major venues such as those for the Olympics and the World Cup.

"XCMG has developed over a dozen products tailored to the Brazilian market, offering customers a choice from over a hundred engineering machinery products," Li said. "In response to the booming wind power industry, XCMG Brazil has introduced multiple large-tonnage lifting equipment, delivering the largest 650-ton all-terrain crane in South America, showcasing XCMG's advanced technologies and innovation."

XCMG Brazil has rapidly entered the new energy market, with over 600 new energy devices arriving in Brazil, providing strong support for Brazil's green economic development.

In XCMG's international workforce, an increasing number of individuals from various countries and ethnic backgrounds are joining. With nearly 4,000 foreign employees, including those at the Brazilian factory, XCMG's employee localization rate in Brazil has reached 96 percent.

"People are the most important element of XCMG's internationalization," said Wang Yansong, president of XCMG Import and Export Company, emphasizing the vital role of employee localization in XCMG's development.

In recent years, XCMG Brazil has conducted more than 100 charitable activities, including earthquake relief, educational support and poverty alleviation, with a financial commitment exceeding a million Brazilian reais.

Guo Jun contributed to this story.

cangwei@chinadaily.com.cn