Hangcha unveils growth plans

News Story
- 18 Oct 2007 ( #332 ) - BEIJING, China
3 min read
Dealers examine the Hungcha range during their factory visit.
Dealers examine the Hungcha range during their factory visit.
Some 66 dealers from at least 26 countries attended a gathering to learn about how China's Hangcha plans to continue moving up the ranks of the global forklift titans, among them, Forkliftaction.com News' Paris Lord.

The theme of the four-day conference was 'one team, one dream'.

For Hangcha, that dream is "to be in the top 10 by turnover in the global forklift industry in the next five years," said Jenny Zhang Zhen Mei, general manager of Zhejiang Hangcha Import & Export Co. Ltd.

The gathering, in Hangzhou, capital of the eastern province of Zhejiang, was to unveil new models and tour company facilities, including a new factory under construction.

The formerly state-owned company reported global sales of 250 units in 2000, when it was privatised. This year, exports will hit 9,000 units, Zhang said.

Hangcha's export goal is to keep the average growth rate at 20%, and to double it in 2012.

Zhao Li Min, chief executive of parent Zhejiang Engineering Machinery Equipment, told dealers Hangcha exported about 6,000 units in 2006. That comprised about 35% of China's total forklift exports last year, he said.

"Our products have been sold to over 100 countries and regions, and Hangcha is now the largest forklift exporter in China."

Zhao added that since privatisation, Hangcha's sales volume has achieved an annual average growth of 40%.

Projected sales for this year are more than 35,000 units.

He said two goals for the company over the next few years are opening a massive new factory, and "perfecting and updating its production".

Building the new RMB1.0 billion (USD133 million) factory at Lin'an, on Hangzhou's northern outskirts, began in August 2007 and is due to be finished by the end of 2008.
It will span a total area of 330,000 square metres (3.5 million square feet) and have a production capacity of 60,000 units a year. The existing factory makes 20,000 units a year.

Chen Wei Qiang, technical supervisor in charge of quality control, said Hangcha will try to offer better before- and after-sales service.

Several dealers from the United Kingdom, Russia, Poland and Kuwait also told the conference of their positive experiences selling Hangcha models.

Hangcha trucked 19 new models to the conference hotel car park. They included a pallet truck, reach stacker, a three-wheeled electric forklift and an explosion-proof truck. Smaller trucks serve the airport baggage sector, while a 16-tonne model would suit steel works, for example.

Guests were armed with clipboard and comment sheets to rate the products as "good/bad/super". They prodded and peered and shot photos of engines.
A few later test rode trucks.

Alexandre Tort, who heads supply chain operations for CAPM Europe in France, has dealt with Hangcha for 13 months and sold close to 200 units.

Tort praised the conference because "we've finally found out we're not alone," he told Forkliftaction.com News.

"As they say, there's a kind of family, so when you can share experiences and find all have the same issues and problems, it makes me feel confident for the future.

"It makes us see Hangcha has high plans for the future, which also means if they want to achieve them, we all have to act."

Asked about Hangcha's quality, one Middle Eastern dealer, who requested anonymity because he sells numerous brands, said the components were well known and the "rolling system is perfect".

However, he adds the finish of the machines needs more work, particularly the seats.
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Previously about:
Jenny Zhang Zhen Mei, Hangcha Forklifts Industry Profile - 25 Oct 2007 - Hangzhou, China - 3 min read
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