A booth of China International Marine Containers Group (CIMC) at Intermodal Asia 2024 held in Shanghai, on May 21, 2024. [Photo/VCG]
Chinese logistics and energy equipment maker China International Marine Containers Group (CIMC) said it has made significant strides in overseas markets this year, as it capitalized on growing demand for its products to secure lucrative orders and complete key deliveries abroad.
The Shenzhen, Guangdong province-based company said its energy and chemical unit has signed 60 million yuan ($8.3 million) worth of agreements with Saudi Arabian petrochemicals company Sabic to supply equipment for the storage of butadiene, an industrial chemical.
Earlier this year, the company's subsidiary specializing in airport-related solutions secured a 50 million yuan order from RAM Handling, a handling operator in Morocco, under which the Chinese firm will provide equipment to help enhance ground handling capabilities at airports in the North African country.
The company has also made deliveries to various other markets. Last month it won a bid in Singapore to offer automated warehousing and logistics equipment for the city-state.
Additionally, Dutch marine contractor Van Oord's offshore installation vessel, built by CIMC, was delivered in January, marking the world's largest of its kind. The company sees emerging markets as a key opportunity.
"Emerging markets such as Southeast Asia, the Middle East and Latin America have strong demand for infrastructure and they have enormous demographic dividends," said Wu Sanqiang, secretary of the board at CIMC, both listed in Shenzhen and Hong Kong.
"Coupled with the accelerated process of regional economic integration, these regions are expected to provide growth opportunities for our container, energy and logistics equipment business, and help us hedge against the risk of volatility in mature markets."
The positive backdrop for CIMC comes at a time when Chinese manufacturing enterprises are accelerating their presence overseas, especially in emerging economies, to diversify their sources of revenue amid domestic competition and heightened geopolitical risks.
This trend has been particularly evident in Guangdong province, known for its strong manufacturing capacity. Among listed companies in the southern province, over 60 percent are believed to have taken steps to "go global", helping the province achieve the nation's highest concentration of enterprises with the largest share of overseas revenue, according to local media.
In a 2024 report by Deloitte China, the consultancy said it assisted more than 2,000 Chinese enterprises with overseas expansion plans involving 96 countries.
Chinese enterprises are expected to further diversify their destinations of overseas investments for the foreseeable future, with the manufacturing sector more likely to set up business in regions close to their product end-users and markets, the report said.
Zhang Yi, CEO and chief analyst of market consultancy iiMedia Research, said that Chinese manufacturing enterprises have shifted from exporting low value-added products to high value-added products, including high-end equipment and new energy vehicles, for example. This shift underscored the country's technological innovation leap.
However, he also noted that more research needs to be done on product design, marketing strategy, analysis of local policies and market potential to avoid "blind expansion".
