Chinese construction and mining equipment giant SANY Heavy Equipment, whose mining machinery factory in Shenyang IM visited earlier this year (and which will be the subject of an in-depth article in 2019) is seeing very positive results as the mining market picks up both domestically and globally. For the six months ended 30 June 2019, SANY recorded revenue of approximately RMB3,043.7 million, representing an increase of approximately RMB847.7 million, or 38.6%, from approximately RMB2,196.0 million for the six months ended 30 June 2018.
SANY says the increase was mainly attributable to a continuous increase in the demand for improvement and replacement of coal machinery equipment, and the coal industry’s accelerated development towards intelligent, unmanned, green and high-efficiency mining. Orders for coal machinery products of the group increased significantly for the first half of 2019 while “the competitiveness and market share of integrated coal mining products and roadheaders continued to enhance, which in turn led to a significant increase in the revenue of (the) mining equipment segment.”
In the first half of 2019, the company commercially launched the SCR200 and 260 series of coal mining roadheaders, while the EBZ160/200M bolting and self-protection roadheader machines were successfully launched in the market which it said “directed the future development of intelligent excavation.” In surface mining the company launched the SKT90S 60 t off highway tipper haul truck. For smaller size classes, tipper trucks dominate in the Asian market over rigid trucks particularly in China as they are lower cost but still reliable and easy to maintain. SANY stated: “In particular, the SKT90S series widebody vehicles have been highly recognised by the mining customers with its outstanding performance, which in turn increased the revenue generated from mining vehicles significantly.”
But the company is not standing still, saying the research and development expenses of the group were approximately RMB209.2 million, representing an increase of approximately 145.5% as compared to approximately RMB85.2 million for the six months ended 30 June 2018. “For the six months ended 30 June 2019, the ratio of research and development expenses to revenue was approximately 6.9%, representing an increase of approximately 3 percentage points as compared to approximately 3.9% for the six months ended 30 June 2018.” The big increase was mainly due to more in investment in R&D on new products, including “Smart Mine, Intelligent Terminal, tunnel roadheader, integrated excavation, bolting and self-protection machine, unmanned electric truck, telehandler, automatic bridge and wide-bodied vehicles.”
The picture shows IM Editorial Director Paul Moore with Deng Wenxu, SANY Heavy Equipment Manager International Dept at the factory in Shenyang in April this year