Five days after LiuGong broke ground on its electric heavy equipment factory in Indonesia, on July 27, the inauguration ceremony for XCMG’s Indonesian New Energy Manufacturing Base was held at the Weda Bay Industrial Park (IWIP), and the first batch of new energy equipment – XC968-EV wheel loaders – officially rolled off the production line for delivery to strategic partner Tsingshan Group.
Tsingshan is a prominent Chinese stainless steel manufacturer holding the majority stake of Weda Bay Nickel at 51.3%, along with the French mining and metallurgical group Eramet holding a 37.8% stake, and PT Antam Tbk, an Indonesian state-owned enterprise with a 10% stake. Weda Bay Nickel operates the world’s largest nickel mine on Halmahera Island in North Makalu Province. These nickel mining operations along with those around the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi are already major users of Chinese battery mining equipment including XCMG’s XDR80TE and SANY’s SKT105E electric wide body trucks.
XCMG’s first overseas new energy factory officially starting production is a major development, with significance in the mining space given the potential demand for mining BEVs in the country, plus as a potential base to supply other APAC mining markets. Song Zhike, Vice President of XCMG Machinery, Weda Bay Park management, customers, and industry partners, along with nearly a hundred guests, attended the event.
XCMG says it is accelerating its transformation in high-end, intelligent, green, global, and service-oriented solutions, focusing on global operations and green industries as its two main directions for transformation. It states: “XCMG’s first overseas new energy factory is a key move in the deep integration of these two major transformations.”
It adds that the new energy manufacturing base integrates complete machine manufacturing, condition-adapted R&D, and localised services, “significantly shortening delivery cycles and precisely connecting with diverse scenarios such as mines, infrastructure, and park logistics in Indonesia.” It says the new energy manufacturing base will leverage local intelligent manufacturing capabilities to supply electric construction machinery products on a large scale, empowering and enhancing the low-carbon transformation of key industries in Indonesia.
Interestingly it also highlighted the reman market: “At the same time, we are deploying circular operation of second-hand equipment and component remanufacturing systems to maximise the efficiency of industrial resource utilisation.”
Currently, nearly 80% of XCMG Indonesia’s employees are local employees, continuously expanding local employment opportunities and cultivating a skilled local talent team.
With over thirty years of being in the Indonesian market, XCMG says it has built a comprehensive localised business and service system. It has now established well-established sales and service outlets, equipped with over a hundred professional service vehicles, and implemented a three-level spare parts operation and maintenance system to ensure reliable operation of the more than 30,000 XCMG machines operating in the country.
XCMG adds: “Relying on the commissioning and establishment of new energy manufacturing factories, XCMG Indonesia’s integrated industrial chain of ‘research, production, supply, marketing, and service’ has been fully closed. Locally manufactured new energy equipment has become an important pillar for the high-quality development of local green infrastructure.”