China‘s projected urbanization rate of 50% by 2020 is a major factor in its economic growth and the biggest winners until now have been construction machinery manufacturers.
A new study in World Development documents the construction machinery boom in China. Sweden‘s Volvo will build a US$30 million technology center in Shandong province, and invest another US$50 million to expand its facility in Linyi, also in eastern China.
Domestic machinery producer Sany Heavy Industry is looking at setting up plants in overseas markets. Sany has set up a development and manufacturing center costing US$60 million in India. A plant worth US$60 million in the United States and another worth US$138.8 million in Germany are under construction. Sany Heavy is also planning a US$200 million project in Brazil.
GulfNews reports that according to the China Construction Machinery Association, China surpassed the US and Japan to become the world’s largest machinery manufacturing power in terms of revenue in 2009.