Sany breaks into local concrete pump market

China’s leading heavy equipment manufacturer, Sany, has decided to go head first into Dubai’s booming concrete pump sector. Chairman and founder of the company, Liang Wen Gen, speaks to Construction Week in his first ever interview in the GCC, to tell us about his plans for the coming year.

  • E-Mail
By  Conrad Egbert Published  December 10, 2005

|~|99int200.gif|~||~|Why have you come to Dubai?

The reason we are in Dubai is because we are trying to open up the market to our products.

We have found a partner, Al Bahkit Construction Equipment (Al Bahkit), who, we think, can help us achieve
this goal.

Who do you consider your main competitors over here?

We mainly see the German manufacturers as our competitors in this region, including companies like Putzmeister and Schwing.

What is your competitive edge in the local market?

The company’s competitive edge is that its machinery is durable and each product has automatic control.

I don’t think the price is so important in this market. We are mainly concerned with the quality.

But China has a reputation for cheap products. Is this fair?

In China, the labour costs are very low in comparison to Europe, which obviously brings down the price of the product.

The cheap price is then seen as a cheap product or a product of inferior quality, which is not correct on the whole. Low costs don’t necessarily mean reduced quality.

What will you bring to this market that is new?

We are bringing competition to the region. So far, the market has been predominantly German-run, and now Sany has brought in a new competitive edge to the area.

We are trying to provide more than our competitors can, and more than our customers currently expect.

What market share are you aiming for?

We are going to try to supply as much as possible.
We had a slight problem trying to supply our product at first because we didn’t have a very good idea of the market situation in the region.

Also our transport infrastructure is not completely sorted out as yet, but we are working on that as well.

A shortage has been created due to us not being able to deliver quickly enough but we’re looking into that.

Do you get involved in the rental market?

We have a global market for leasing but in Dubai we do not lease directly. Our agent, Al Bakhit, takes care of the leasing. They lease out the equipment under their name.

What is the lead-time for your pumps?

That depends on stock availability but currently, a standard pump from stock would take about a month to supply to
the client.

Are you focusing on Dubai or the entire GCC region?

Sany is using Dubai as a springboard into the whole of the GCC. We are working together with our agent, not only in Dubai but in other areas in the GCC as well.

We are present in all the GCC countries through Al Bakhit, except in Saudi Arabia.

One of our main clients, Unimix, is a sister company of our agents Al Bakhit.

How many machines have you sold in the local market this year?

Over the past 12 months we have sold 14 large truck-mounted mobile pumps, 21 static pumps and 47 placing booms.

Which companies are you currently supplying equipment to?

Some of the companies that we supply pumps to are Nasa Multiplex, Unibeton, Unimix, Cemix, MBmix, Qmix, Tremix, SS Lootah, National Ready Mix, Dhabi Contracting, Saleh Contracting and Darmix.

Which particular piece of equipment is most in demand here?

Currently, I think placing booms and static pumps are the most in demand here in Dubai and across the GCC.

Is conducting business here in Dubai any different from the way it is carried out in China?

In China or India, or Vietnam for that matter, we contact the end-user directly, but here we have to go though our partners.

And we prefer using a local partner, as we may not have been able to grow so rapidly if we were to do it by ourselves.

There are many cultural differences here in the Gulf, and also the language barrier, so we are better off with our agents handling local business.

Are there any major projects in Dubai that Sany is supplying pumps to or hoping to supply equipment to in the future? Is the Burj Dubai on your list?

Yes there are a couple of projects that we’ve tendered for, but since they’re still in the tendering stages we can’t really disclose much at this point.

But we have supplied 17 placing booms for the Jumeirah Beach Residence project.

Sany concrete mobile pumps were only used on the foundations for the Burj Dubai; we are not pumping the tower. ||**||

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code