Digging Deeper

The cumulative effect has been to cause confidence to falter. It has been a tempestuous period, both for manufacturers and suppliers of construction machinery. However, most in the business have weathered the storm admirably, and are now seeing encouraging signs for the future.

This certainly seems to be the case in the Middle East’s excavator sector. These machines are amongst the most important on any construction site – an absolute must for anybody hoping to build big. However, this is a fiercely competitive field, and the ability to adapt is crucial to any company looking to expand its share of the market.

But what about the view from the inside? How have those operating in the Middle East’s excavator industry coped since 2008, and what are their expectations for the future? PMV sits down with four of the biggest players in town to gauge their perspectives of the contemporary excavator landscape.

Hidro-power
Ahmet Bozkurt, assistant general manager for sales and marketing at Hidromek, outline’s the manufacturer’s plans for growth

Turkish manufacturer Hidromek recently announced plans to invest $125m into new premises dedicated to the production of its HMK excavator range, doubling the firm’s current capacity.

As Hidromek already exports excavators to more than 60 countries across five continents, the new manufacturing base is a clear signal of the company’s intentions for the future.

“The last few years have been excellent for Hidromek,” said Ahmet Bozkurt, assistant general manager for sales and marketing. “Both domestic business and exports have enjoyed double-digit growth.

“We are the market leader in Turkey for excavators and backhoe loaders. Despite its growing dealer network and sales figures, Hidromek is not complacent. On the contrary, the company is continuing to invest in new premises and production facilities.”

Hidromek’s excavator division is not only enjoying success in the Turkish market, however. The company is also making good progress in the Middle East.

“We already have a large number of excavators operating in the GCC region,” Bozkurt explained. “Moreover, we have recently started to review and expand our distribution network. All Hidromek excavators can be fitted with Smartlink: a satellite control system that provides the end user with highly valuable, instantaneous data.”

Although only a minor proportion of Hidromek’s total business is currently conducted in the Middle East, the company has big plans for the future.

“Even though the GCC accounts for only a small percentage of Hidromek’s sales at present, this region has been identified as one of the key areas for the future development of the company,” said Bozkurt.

“Of course, the brand name is well known and respected in the Middle East. Our priorities are to increase marketing efforts and to build a strong after-sales network.”

HMK220 LC

• Engine: ISUZU AI-4HK1X
• Maximum power: 162hp
• Maximum torque: 656Nm
• Swing speed: 11rpm
• Fuel tank: 354L

Grand Ambitions
Fengkai Wang explains why he expects SANY excavators to attract an ever-growing share of the region’s market

SANY might not yet be a household name in the Middle East, but you would be wise to watch this space. The company’s efforts in the GCC seem to be paying off and the Chinese manufacturer has ambitious plans to establish itself as the Middle East’s leading excavator brand within a surprisingly short period of time.

“Business has been growing steadily since we approached the market in the Middle East; especially for products such as excavators, truck cranes and crawler cranes,” said SANY Middle East’s Fengkai Wang.

“We have plans to lease excavators in KSA by the year’s end, and we believe that this will offer new opportunities for growth in the region. This, in turn, should benefit both customers and the local economy. SANY is very much looking forward to creating a win-win situation.”

As the fifth largest heavy machinery brand in the world, SANY sells more than 20,000 new excavators every year.

“Customers choose SANY products because of their high quality and reliability,” Wang told PMV. “More and more excavators are introduced into the Middle East every year. Demand is high, and that’s why we plan to start leasing excavators in the region. Over the course of the last 12 months, we have provided more than 200 excavator units, and we expect this figure to double in 2014.”

The company has already made important inroads in the region. SANY excavators can be found operating across a broad spectrum of locations.

“Our excavators are being used all over the Middle East – from remote mountains to noisy metropolises, and from ragged coasts to scorching deserts,” said Wang. “Tens of SANY excavators are currently being used in the construction of the Makkah Metro in Saudi Arabia. More generally, our machines can be found working on mining and demolition sites across the region.”

It appears that SANY has enjoyed significant success in gaining a foothold in the Middle East. What, though, are the major challenges facing the company?

“As we are latecomers to the market in the Middle East, we are not especially well recognised in certain areas,” explained Wang. “However, we are confident that within the next five years or so, we can become the leading manufacturer in the region. Our target is to replicate the same level of success that we have achieved in China and other international markets, such as Asia-Pacific, Africa and Latin America.

“Challenges and opportunities coexist, and SANY will take full advantage of the opportunity to increase customers’ profits,” he continued. “Our fastidious attitude towards quality and after-sales support will allow us to provide the most adaptable machines in the Middle East. This philosophy is bound to help us attract more and more customers from across the region.”

The Middle East is far from a mere vanity project for SANY, however. The GCC represents a vitally important market for the manufacturer.

“SANY’s business in the Middle East is an important part of the company’s strategy for internationalisation,” said Wang. “Many famous projects, including the construction of the Burj Khalifa, have already made use of our excavators. The Middle East represents our most promising opportunity for growth, and we are keen to prove this to customers in the near future.”

Despite its grand ambitions, SANY’s immediate priority is to expand its presence in Saudi Arabia.

“Our main goal for 2014 is to introduce more excavators to the market in the Middle East; especially in KSA,” Wang concluded.

“With the high performance of our excavators and the level of after-sales support that we offer, SANY will improve its reputation in the region and gain a larger market share. Of course, we will not focus our attentions solely on selling new excavators; we will also strive to expand leasing operations across the Middle East. This will be another highlight of SANY’s extended business in the region.”

SY285C-8

• Operating weight: 28,800kg
• Standard bucket capacity: 1.4m3
• Rated power: 190.5kW / 2,000rpm

A Tailored Approach
Ninan George, marketing manager at Al Wasit Machinery, tells PMV why Hyundai’s 9S excavators are so suited to the Middle East

Established in 1972, Hyundai Heavy Industries has grown into the world’s leading heavy industries company. The brand name is known the world over, and is well respected in terms of quality, reliability and after-sales support.

In order to maintain this level of success, the company has had to think locally as well as globally. By carefully selecting distributors that can offer the required level of service, Hyundai has built up an excellent reputation across the Middle East.

Ninan George, marketing manager for UAE distributor Al Wasit Machinery, explains why Hyundai’s 9S Series of excavators has been so well received in the GCC.

“Hyundai introduced its 9 Series excavators in 2012,” he began. “The company’s 9S models, which are particularly suited to conditions in the Middle East, were rolled out in the second half that year. The new technology incorporated into the 9S family offers higher productivity, and fuel efficiency up to 11% better than previous models.”

Hyundai crawler and wheel excavators are currently being used for excavation, backfilling and land filling on major projects, including Dubai’s Mohamed Bin Rashid City Project and Abu Dhabi’s Strategic Tunnel Enhancement Project (STEP).

“9S Series excavators use Tier 2 diesel engines, which are able to deal with the high levels of sulfur typically found in the region’s fuel supply,” explained George. “The mechanical inline injection engines are cheaper than electronic ones and tend to last longer. Maintenance costs and fuel consumption are also considerably lower.”

In 2011, the proportion of Hyundai excavators sold in the GCC region accounted for approximately a quarter of the division’s global excavator sales.

“This demonstrates both the quality and quantity of Hyundai’s operation in the Middle East,” George concluded.

R220LC-9SH

• Engine: HYUNDAI D6BV-C
• Operating weight: 23,360kg
• Bucket capacities, SAE: 0.92m³
• Rated power: 110kW (1,950rpm)
• Travel speed: 13,600Kgf
• Rated power: 190.5kW / 2,000rpm

Traversing the Market
Doosan Infracore Construction Equipment’s marketing manager Vincent Cho tells PMV why the Korean excavators are equipped to deal with a challenging market.

“2013 hasn’t been the best year for the construction business,” he began. “There has been a certain level of stagnation, mainly because of US quantitative easing and the EU economy. Even so, Doosan has recently launched two new excavators in the Middle East: the DX500LCA and the DX700LC.”

Only a small proportion of Doosan’s business is conducted in the GCC, and Cho is keen to exploit the region’s untapped potential.

“We will continue to provide high-quality products and after-sales support to customers through our network of dealers.”

DX700LC

• Bucket Capacity: 3.3m³
• Operating Weight: 70.1 ton
• Rated Power: 469hp / 1,800rpm