General Manager of SDLG Import and Export Company Wang Xiaohui explains the implications of China’s Belt & Road Initiative (BRI), dubbed a 21st Century reinvention of the revolutionary Silk Road, for the construction equipment industry.
How do you think the Belt & Road Initiative (BRI) will affect the market for construction equipment in Asia and the Middle East?
Currently, many Chinese companies are undertaking construction projects under the umbrella of BRI. Their efforts are mainly being focused in South East Asia, Central Asia and Eastern Europe, and naturally, construction machinery demand is being increased in those areas. A lot of Chinese-branded machinery is being used on these projects, demonstrating its quality in these types of applications. At the same time, the market awareness of these products is increasing.
A few projects currently being worked on include:
- Sino-Belarus Industry Park in Minsk, Belarus
- Sino-Laos Railway
- Sino-Myanmar Railway
- Friendship bridge in the Maldives
- Kuantan port upgrade in Malaysia
- Indonesian high-speed rail linking Jakarta and Bandung
Does SDLG have any plans to provide support to the BRI?
Yes, SDLG is actively participating in many projects under the umbrella of BRI. It’s too early to go into detail about these projects, but I can confirm that SDLG is not only providing the needed machinery, but also product solution, service support and parts supply to a number of projects.
Will SDLG have to change the way it works in order to support this project?
We will still maintain our normal operation but put more resources into approaching Chinese construction companies, listening to their demands, providing the recommended solution and trying to help them save on their total investment costs.
What is the dealer footprint like in the area affected by the BRI? Are the any plans to open new dealer sites to support the project?
Our dealers seem happy with the potential opportunities created by the BRI project. We are currently working together with the local dealers to provide more machines, parts and services, as well as increase the frequency of local visits. We have selected some countries where we will focus our efforts, including Vietnam, Laos, Thailand, Malaysia, Indonesia, Kazakhstan and Russia.
How will dealers ensure the same high-quality aftermarket support for projects in remote areas?
Our mobile service ability is a basic feature of all SDLG’s overseas dealers, so we believe we are well positioned to be able to provide services to customers, wherever it’s needed. However, sub-dealers or branches will be established if required.
Why is the robustness and reliability of SDLG machines so important for a project like the BRI?
High efficiency and low downtime translate to cost savings for customers. SDLG products are very robust and reliable, meaning work harder for longer, which is very important to our customers.
Why is low total cost of ownership (TCO) important for such a project? What is it about SDLG machines that ensures a low TCO?
Purchasing SDLG machinery at low cost is only a first step for customers. Low operational costs, low maintenance and repair costs, and high resale price are some other considerations for customers. SDLG provides the product solution customers need: reliable machines, quality service packages, finance options – all with the goal of keeping customers’ machines running for longer, with the lowest TCO possible.
What is SDLG’s approach to delivering the best possible uptime for customers?
First, by helping customers select the right machine for the job. Next, by providing them with machine operation/maintenance/basic repair training. We also ensure all necessary maintenance parts are available as close to the customer as possible to keep maintenance downtime to a minimum.
How will SDLG benefit from being part of the BRI?
Being part of such a revolutionary project will increase SDLG’s brand presence in the countries along the BRI, grow sales volume and revenues, garner more influence among Chinese contractors, and increase SDLG’s ability to provide product solutions for unique, largescale projects on demand.
