23.11.2011

Zoomlion announces Indian partnership

Chinese crane manufacturer Zoomlion has announced its intentions to establish a strategic alliance with India’s largest industrial crane manufacturer ElectroMech, to manufacture and distribute tower cranes in India.

The announcement, made at the Excon construction equipment and technology show which opened today in Bangalore and where both companies had stands.

The deal is likely to include the flat top tower crane designs that it recently acquired from German based Jost. It is also likely to include models from its hammerhead and luffing jib range.

ElectroMech is based in Pune and claims to be India’s largest manufacturer of overhead cranes for the industrial market, it also produces a wide range of other industrial lifting products, including fixed and rubber tyred gantry cranes. It already has relationships with German manufacturers Abus and Stahl Crane systems and has worked with Cargotec on some of its product lines.

Zoomlion chief executive Zhan Chunxin said: “Chinese enterprises must accomplish localisation first in order to go global, the more localised we are, the more globalised we become."

"The aim of this strategic alliance is for Zoomlion and ElectroMech to work together in order to effectively and successfully address the opportunities presented by the Indian market. We have high expectations from this strategic alliance and both of us are looking forward to replicating Zoomlion’s global success in the Indian market.”

Electromech’s managing director Tushar Mehendale added: “We are extremely excited to partner with a global leader like Zoomlion. With this collaboration, we look at strengthening our market position by extending our product portfolio to offer total solutions to our customers. Over the past few years, India has consistently ranked amongst the world’s fastest growing economies having an average annual GDP growth rate in excess of eight percent. India is on the cusp of increased infrastructural spending and the recent five year plan envisages a spend in excess of $1 Trillion.”

“The strategic alliance between Zoomlion and ElectroMech aims to tap this infrastructural boom. Tower cranes have a huge potential in India as they find applications at various real estate and construction project sites all across the country. The market for tower cranes is now on the verge of witnessing explosive growth and is expected to grow at 20 to 25 percent annually. So we feel very confident about our future."