From Creamer Media in Johannesburg, this is the Real Economy Report. China-based machine manufacturer XCMG launched a diverse range of specialist machinery in August in Ruimsig, Johannesburg. Jonathan Rodin tells us more.

Jonathan Rodin:
The range includes truck loader cranes, cherry pickers, rollbacks, wheel loaders, excavators, backhoe loaders, skid-steer loaders and truck-mounted mobile cranes.

XCMG South Africa was launched in South Africa in 2007 through a partnership with XCMG, in China, and supplies industrial cranes to the local market. However, the launch of these new machines furthers the company’s vision to become the leading brand of construction and mining equipment in Africa.

XCMG South Africa vice GM Alec Zhang tells us why the company chose South Africa.

XCMG South Africa vice GM Alec Zhang:
XCMG is the largest construction equipment manufacturer in China and ranks number five in the world. The South African market has a big potential for construction equipment, so for XCMG, the South African market is very important for us.

Jonathan Rodin:
South Africa is a vital market, as it is the financial and economic centre of Africa, and the stable political environment provides a safe investment environment

Zhang also highlights the company’s plans in terms of the local mining industry.

Alec Zhang:
“We are aware that South Africa houses several mines. For example, in Mpumalanga, Limpopo and the Northern Cape. XCMG will set up a branch in Middelberg, Mpumalanga in November. This will allow us to focus on the mining industry’s customers.”

Jonathan Rodin:
All XCMG products are supported by extensive quality guarantees.  XCMG in China uses world-class production lines, with robot welding and painting facilities, as well as the best testing line for construction equipment, which ensures all quality ratings are achieved before export

XCMG South Africa national sales manager Deon Grobler discusses the company’s plans and its product applications.

XCMG South Africa national sales manager Deon Grobler:
“We know with XCMG it is a challenge with a new scope and a new product on the market been launched today. We’ve already got sales with customers that look at the product and know that the product is affordable, but a very good, reliable product. 

So we are going to focus on Mpumalanga, Gauteng, branches in Cape Town. We are eventually going to look at Northern Cape, Eastern Cape, Namibia, KwaZulu Natal. So there will be branches, dealers, as well as agents to sell the product.

Our target is the mines, construction companies, light/heavy duty, and companies with plant hire – where they will buy the plant and rent it out. We are going to go for opencast mainly, although we have got products for underground as well.

With the product range that we have got, there is not one customer that we have to skip. We can go to every single one of them and we’ve got a product for every application in South Africa, for the conditions, very good, very reliable, yet affordable.”

Jonathan Rodin:
I’m Jonathan Rodin reporting for Creamer Media in Johannesburg.

Shannon de Ryhove:
Other news making headlines this week: Schneider Electric and BMW partner on the i3’s charging technology; More South African engineers are needed to improve social welfare; and, Growthpoint’s distribution growth is up 8.3% as the company experiences on of its “busiest years”.

BMW South Africa has reiterated plans to launch the i3 electric vehicle and the i8 hybrid car in South Africa in March or April 2015, while also announcing that the automotive manufacturer has partnered with global energy management company Schneider Electric on the charging technology for the i3.

Schneider Electric Southern Africa country president Eric Leger

Science and Technology Minister Naledi Pandor said South Africa didn’t produce enough graduate engineers, which was worrying, as good engineering made a significant contribution to social welfare.

Science and Technology Minister Naledi Pandor

JSE-listed real estate investment trust Growthpoint Properties achieved distribution growth of 8.3% during the year ended June 30, outperforming market guidance of 7.2%.

Growthpoint CEO Norbert Sasse

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.