The Wall Street Journal published a lengthy article about Sany America’s efforts to become a leading player in the United States construction equipment industry, mentioning the possibility that Sany might consider investing in the equipment rental channel. Reporters James Hagerty and Colum Murphy wrote that Sany’s goal is a challenging one as it attempts to compete with well-established players such as Caterpillar, Komatsu and others.
Sany has built a $60 million office building and adjoining warehouse in the Atlanta suburb of Peachtree City, Ga. The company bought 228 acres of wooded land in an industrial zone in 2007. Although Sany’s annual sales of $12.86 billion fall far short of the $65.9 billion Caterpillar reported in 2012, Sany chairman Liang Wengen said in November he expects the company to reach about $47 billion within 10 years. Sany has established sales and marketing operations in Europe, Latin America, India and other places.
The article points out the challenge Sany faces in establishing a high-quality dealer network. Nonetheless, Sany has been growing its dealer network and now has more than two dozen dealers in North America, selling excavators, cranes and port machinery.
Unnamed industry executives, sourced in the WSJ article, said Sany could gain more exposure in the U.S. by buying all or part of an equipment rental company. Tim Frank, chairman of Sany’s U.S. business, told the WSJ he is exploring the rental channel, along with other potential acquisitions and partnerships. Last year Sany acquired Putzmeister Holding GmbH, a German manufacturer of concrete pumps for about $500 million.
