TIANJIN JIAYI STEEL CO.LTD , https://www.jiayisteel.com
Changsha may not be a hub where numerous construction machinery companies gather, but it is a city that has seen its fair share of industry events. Thanks to media attention, local firms have gained visibility, especially the key players involved in various incidents, who have left a lasting impression on the public. So, what makes Changsha's construction machinery industry stand out? What kind of strength does it truly possess? To uncover these answers, reporters recently conducted an in-depth investigation into the sector.
Changsha ranks among China’s top ten industrial bases for construction machinery. In 2005, the industry generated over 12 billion yuan in sales revenue. At that time, 12 Chinese construction machinery companies made it into the Top 100 Machinery Enterprises in China. Among them, China United Group, based in Changsha, ranked 30th with annual sales of 4.67 billion yuan, while Sany Group came in at 35th with 4.42 billion yuan in revenue. This year, seven Chinese construction machinery companies entered the global top 50, and both China United and Sany were included.
There's a saying in the industry: third-rate companies work hard, second-rate sell technology, and first-rate sell standards. Zoomlion was established based on the Ministry of Construction's Changsha Construction Machinery Research Institute, which is responsible for setting national technical standards for construction equipment. The institute has developed 294 national standards for the industry.
According to incomplete data, Changsha’s construction machinery industry holds at least 400 national patents, including 163 from China United Group, 158 from Sany Group, and 28 from Shanhe Intelligence. Such a concentration of patented technologies is rare in China’s construction machinery sector.
In recent years, Changsha-based companies have heavily invested in their own research institutes. In addition to Zoomlion, Sany Heavy Industry also operates a national-level technology center, with an annual R&D budget of 100 million yuan. They have also set up research branches in Japan, the U.S., and Germany, integrating advanced overseas technologies into their products and gaining a competitive edge by entering the market from a high starting point.
The region benefits from a strong talent pool, which has driven the rapid growth of its construction machinery industry. There are currently three postdoctoral stations, two national technology centers, and three provincial ones. Statistics show that four major companies—China United, Sany, Jiangyan, and Shanhe Intelligence—have received government grants and have more than 100 young and middle-aged experts at the provincial or ministerial level, along with over 2,800 engineers and technicians.
Shanhe Intelligence is closely tied to academic talent. Its chairman, He Qinghua, is a professor and doctoral supervisor at Central South University. More than half of the company’s 1,000 employees hold bachelor’s degrees or higher, with over 100 postdoctoral, doctoral, and master’s degree holders.
Changsha’s construction machinery firms have largely overcome development bottlenecks through stock listings. Zoomlion and Sany went public in 2000 and 2004 respectively, raising significant capital for expansion. In 2005, China United Group achieved 4.67 billion yuan in sales and 510 million yuan in profit. According to the Top 100 Machinery Enterprises in China, China United and Sany ranked 30th and 35th by sales revenue.
Despite these advantages, there are still challenges. While individual companies in Changsha have strengths, none have yet reached a large enough scale. The industry remains fragmented, with low concentration, limiting its impact on the regional economy and overall industry development. A true "aircraft carrier" has yet to emerge.
Unlike other domestic construction machinery hubs, where a central enterprise drives the entire ecosystem, Changsha lacks this cohesion. Companies often compete rather than collaborate, leading to inefficiencies. Both the government and industry leaders hope for stronger cooperation among key enterprises, forming a collaborative community to better utilize resources and enhance overall competitiveness.
Today, market competition is no longer just between companies—it's about the strength of the entire industrial chain. Those with a complete chain can dominate the market. Changsha’s construction machinery industry still faces challenges in this area, as its supporting industries are underdeveloped, the chain is loosely connected, and critical links are missing. Overcoming these issues will be key to its future success.