Sany Heavy Industry, one of China’s largest manufacturers of heavy equipment, plans to raise up to $1.5 billion through a proposed initial public offering (IPO) in Hong Kong to fund its global expansion. Despite ongoing trade tensions between China and the U.S., the company aims to use the capital to enhance its sales and service networks outside China. Sany, which filed for the IPO in February, is seeing strong demand in developing regions such as Asia-Pacific, South America, and Africa, primarily driven by infrastructure development.
Jiang Qingbin, vice president of parent company Sany Group, shared that Sany’s goal is to more than double its overseas revenue to 100 billion yuan ($14 billion) in the next three years. In 2024, the company’s overseas revenue grew 12 percent year-on-year to 48.51 billion yuan, accounting for nearly 65 percent of its total revenue. Jiang emphasized that the company’s globalization efforts would focus on expanding local marketing channels rather than building factories abroad.
Sany, which manufactures equipment for a wide range of industries including concrete transport, excavation, lifting, and road construction, is one of over 100 companies in China planning for Hong Kong IPOs this year, reflecting improving market sentiment despite trade tensions. Founded in 1989, Sany has established overseas production facilities in regions such as the U.S., Europe, India, Brazil, and Germany. The company now sells to around 180 countries and regions. Direct exports accounted for around 80 percent of its overseas revenue in 2024, with the remainder from production abroad.
Although Sany’s domestic market in China has been impacted by the country’s real estate crisis, which has dampened demand for heavy equipment, overseas markets have proven to be more lucrative. Revenue from China in 2024 dropped by 3.4 percent year-on-year, with the real estate downturn playing a significant role. Jiang noted that overseas markets, especially in developing and emerging economies, offer greater opportunities, with a high level of acceptance for Chinese brands.
Regarding the ongoing trade war with the U.S., Sany downplayed the potential impact, as North America makes up only a small portion of its overseas revenue. The company has also achieved supply chain independence, mitigating concerns about U.S. tariffs on components. Sany plans to wait until after the U.S. administration’s 90-day tariff pause to finalize its overseas expansion strategy.
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