Doosan Infracore received large orders for medium-sized excavators from China, as the Chinese construction machinery markets began showing positive signs of recovery.
On the 6th of the month, Doosan Infracore revealed that it had received orders for 32 medium-sized, 22-ton grade excavators from two large construction companies involved in infrastructure construction. These excavators are expected to be used for the infrastructure construction of Chanchun Shi, which will construct a subway, expressway, and a bridge.
Yunseong Yeom, Managing Director of sales in China, said “Customers who placed orders this time are willing to purchase at least 10 more excavators. We will be able to receive more and more additional orders by providing the customer with superb quality of our product and customer relationship.”
Doosan Infracore’s market share in the Chinese excavator market was 7.3% last year. The company’s market share in the Jilin region was also somewhere between 10-19% for the last three or four years with the accumulated market share this year for February close to 13%.
The manufacturing industry in China is showing signs of rapid recovery, which fell greatly due to the infectious Coronavirus (COVID-19) earlier this year. On the 31st of the last month, the National Bureau of Statistics of China announced that the manufacturing PMI for March was 52.0. It was a sharp rebound in PMI following a record low of 35.7 last February. If the manufacturing industry PMI exceeds 50, economic expansion is on the horizon.
With accumulated sales through February reaching 14,000 excavators, the Chinese excavator market shrank by half compared to the same time last year, but then returned to the previous year’s level as 40,000 excavators were sold during the month of March.
An inside source of Doosan Infracore was quoted as saying “The Chinese market demand began showing signs of recovery, although it was slow for about two months at the beginning of the year. The industry expects that a full-scale return of the peak season will take place sometime in April or May.”