September 23, 2022
The Australian sales division of XCMG is investing in local infrastructure to become a household name.
In 2021, XCMG Mining Equipment Australia Pty Ltd, signaled their intent to challenge the current duopoly by opening their headquarters and 2230m depot in Melbourne, as well as a spare parts centre in Karratha, Western Australia.
Specialising in the supply, distribution, and delivery of new and used mining equipment, XCMG Mining Equipment Australia are growing their dealer network to deliver a high level of pre- and after sales service. Currently, there are eight dealers nationwide, with fifteen sales and service outlets. The dealer network is supported by a growing team of eleven, including sales, service, and support engineers.
Becoming a household name outside of China.
Commencing operations in 1943 as Huaxing Iron Works, XCMG Group was established in 1989 and is headquartered in Xuzhou, China.
For over 30 years, they’ve been the No. 1 manufacturer of mining and construction equipment in China and are currently ranked third behind Cat and Komatsu. In 2021, they became the number one supplier of cranes, a position long held by Liebherr.
XCMG products are now exported to over 183 countries and regions worldwide with 300+ distributors. Globally XCMG has:
- 6 international research centres
- 40 overseas offices
- 46 large spare centres
- 14 manufacturing bases
- 2000+ service outlets
- 6000 technical engineers
With a shift in development strategy to sell successfully developed products rather than test in the market, the brand focus has shifted to product quality over quantity.
XCMG is formulating a new five-year development plan in which it attaches more importance to technical advancement, structural innovation, benefit and quality, instead of fast-rate growth in scale."
Wang Min | XCMG Chairman
XCMG Mining Equipment Australian operations
In 2019, a delegation from Rio Tinto visited XCMG in China to discuss security of large mining equipment, supply chain management and developments in the global mining equipment market. For the next two years, the elite project team took charge of research and development, manufacturing, and quality control to be able to deliver 6 customised GR2605 graders to the mining giant’s Pilbara operations.
- Now, under the guidance of General Manager, Roy Rossini, XCMG Mining Equipment Australia is establishing an experienced dealer network with a strong base to support customers. And interest in the brand is growing, with the range including:
- Mining Trucks
- Motor Graders
When committing to expand their operations into Australia, it was estimated that the 2021 fleet delivery would be 730 units of machinery. First quarter delivery for 2021 was 905 units across construction and mining machinery.
One of the key reasons is XCMG’s process of continuous improvement and quick turn around on implementation. As Roy explains:
“We have a direct line of communication into the manufacturing of equipment for the Australian market. Which means, we build and change to customer demand. If our clientele wants something included or changed, it’s not a two-year approvals process. We can turn it around for the next production run.”
Along with design changes, the other deciding factor has been the ease of securing replacement parts. The equipment is designed so parts are as common as possible. XCMG has a worldwide network of spare part centres. Therefore, their guarantee is to have parts on site within 72 hours and it’s proving a winner with new and existing customers.
While XCMG might not be a household name just yet, they’re certainly making all the right moves to challenge common misconceptions, secure high profile clients and develop long-term relationships for the future.