During recent years, the old guard of original equipment manufacturers (OEMs) operating in the Middle East has found itself under increased pressure from the Chinese market. It is no longer a given that local contractors will look to North America, Europe, Korea, or Japan for their construction machinery. Competitively priced, high-quality machines have turned the heads of a number high-profile end users across the region.
But to paint these manufacturers as newcomers is to tell only half of the story. Whilst they may still be relative youngsters within the context of the Middle East’s construction sector, these companies – without exception – have built up impressive pedigrees on the domestic front.
The roots of XGMA, for example, stretch back over six decades. Established in 1951, the Chinese construction equipment giant is famed for its wheel loaders, and produces a full range of machinery from the diminutive forklift truck to the mighty bulldozer. As on its home turf, wheel loaders have comprised the majority of the manufacturer’s Middle Eastern sales to date, but the firm has also made significant progress with its lines of skid-steer loaders, motor graders, and compactors.
Next up on XGMA’s hit list, it seems, is the Middle East’s excavator market. With its latest model in the 21.5-tonne class, the manufacturer is confident that it has a machine equipped to take on the region.
PMV travelled to the company’s Jebel Ali yard in Dubai, UAE, to find out whether the XGMA XG822EL has the excavator X factor that the region is looking for.
“We offer models from six-tonne mini-excavators all the way up to 48-tonne giants,” said Garret Gao, sales manager at Xiamen XGMA Machinery Gulf.
“With an operating weight of 21.5 tonnes, the XG822EL is situated in the middle of XGMA’s hydraulic excavator range. The model is available from $90,000, depending on the options selected by the customer” he told PMV.
With a price tag as attractive as that, you could be forgiven for assuming that Gao and his colleagues are offering a stripped-down affair in the form of the XG822EL. The specifications of the machine, therefore, might come as somewhat of a surprise.
Firstly, the excavator boasts a turbocharged, intercooled Isuzu CC-6BG1TRP engine, which XGMA says offers a potent combination of fuel efficiency, low emissions, and brute force. The unit’s hydraulics system, meanwhile, is powered by one of Isuzu’s compatriots, Kawasaki. When it comes to power, the XG822EL has a distinctly Japanese flavour.
It’s not unusual for OEMs to look elsewhere for key components such as engines and hydraulic motors; globally recognised names such as Isuzu and Kawasaki help manufacturers to instil confidence amongst customers. Moreover, the procurement of high-quality components becomes especially important in regions such as the Middle East, where operating conditions are rarely forgiving.
“We need to ensure that our machines are sufficiently robust to operate in the Middle East,” explained Rocky Wu, vice general manager of Xiamen XGMA Machinery Gulf.
“The XG822EL’s Isuzu engine is of the highest quality, and is ideally suited to typical working conditions across this region,” he told PMV.
“XGMA machines are tested thoroughly in China,” added Gao.
“We conduct tests in regions where temperatures are comparable to those reached in the Middle East. It’s vital that our machines are equipped to cope with operating conditions in this area. The XG822EL is no exception; it performed well under scrutiny and we’ve encountered no reliability issues.”
The integration of globally recognised parts will do much to reassure XGMA customers that its machines are up to the job, but this initial reassurance will only translate into trust if the units prove themselves worthy in the field. As with any other newcomer, the XG822EL will only succeed in the Middle East’s construction sector if it demonstrates performance and reliability on the front line.
XGMA has already sold a number of these units in the markets of Saudi Arabia and Iraq, and encouragingly, Wu says that end users seem perfectly pleased with their excavators.
“Performance is one of the biggest advantages of the XG822EL,” he explained.
“It’s energy efficient and extremely reliable. Such attributes help to keep our customers’ operating costs low and their uptime high. Also, the excavator is cheaper than the equivalent models from brands like Komatsu and Caterpillar, and compared to units from other Chinese manufacturers, its configuration is better,” said Wu.
One of the most common concerns, historically, over purchasing machinery from Chinese OEMs, has been a perceived lack of aftersales support and spare parts availability.
Despite the significant cost savings on offer at the outset, some of the region’s end users have been reluctant to forego longer-term assistance from manufacturers.
Whilst this argument might have legitimate roots, it does not necessarily hold true in the Middle East today. OEMs such as XGMA have listened to feedback from local customers, and have taken measures to address their concerns.
“Every XG822EL hydraulic excavator comes with a one-year warranty,” said Wu. “We are able to provide aftersales service and maintenance support to customers across the region.”
A positive showing from the XG822EL hydraulic excavator would be further evidence that the XGMA brand is gathering momentum in the Middle East market. The manufacturer’s sales figures have been gradually increasing of late, especially in the Kingdom, and Gao expects 2014 to represent another solid year for the company’s regional business.
“Last year, XGMA sold almost 500 units in the Saudi Arabian market,” he explained.
“This year, we expect to achieve similar results, or perhaps even better. The market is still a little slower than we’d like in the UAE, but things are going well across the GCC and wider Levant as a whole,” Gao concluded.
With the backing of their Chinese principal, Wu, Gao, and their UAE-based colleagues appear to be sustainably growing their business across the Middle East market. By paying close attention to the needs and concerns of local customers, Xiamen XGMA Machinery Gulf is slowly but surely succeeding in strengthening the brand’s regional reputation.
XGMA wheel loaders are already a common site in the Gulf, and the manufacturer’s other equipment lines look to be following suit. Indeed, with its high build quality and low price tag, the XG822EL could well become a popular workhorse on construction sites the length and breadth of the Middle East.
