Construction equipment manufacturer Zoomlion is venturing actively into the agriculture sector following a 35 per cent increase in profits this year
The company, based out of China’s Hunan province, exported more than 4,600 combines and tractors to date worth US$47.2mn, according to reports in Chinese dailies.
Zoomlion set up a manufacturing plant in Bishan that would manufacture agricultural equipment. Though overseas business accounted for 10 per cent of the overall profits last year, company executive Zhang Jianjun is confident the figures would reach 40 per cent in the next five years. Already, in the first half of 2015, profits jumped 35 per cent, said the company.
“We believe the agricultural equipment market will be a major force in driving growth,” he said.
As part of Chinese president Xi Jinping's initiative titled Belt and Road, Zoomlion is engaged in globally expanding into other countries and diversifying business interests. The initiative connects Asia, Africa and Europe, passing through more than 60 countries and benefiting more than 4.4bn people.
For Zoomlion, growth had been slightly sluggish in 2012, following which it decided to venture sectors outside of construction. Now, Zoomlion CEO Zhan Chunxin has noted the huge growth potential, which might even surpass the company’s core business of construction machinery in the years ahead. “The move (to focus on agriculture equipment production) is expected to help build a regional industry cluster worth US$1.5bn,” he said.
