Xiangdian Heavy Equipment Co. Ltd is the first dump truck manufacturer in China to sell its independently designed and manufactured equipment.
Xiangdian Heavy Equipment, a manufacturer of off-highway vehicles, counts among its customers many mining companies and construction companies that build metro lines or are involved in water conservancy projects. Having obtained 10 patents for inventions and another 60 patents, Xiangdian is one of the first dump truck manufacturers with independent intellectual property rights in China.
At the end of May 2011, the first 300-tonne electrically driven dump truck designed and manufactured independently by Xiangdian Heavy Equipment rolled off the production line, making the company a pioneer in manufacturing large-tonnage dump trucks in China.
“Our decision to design and manufacture large-sized trucks was based on the overall development plan of the company,” says president of Xiangdian Heavy Equipment, Li Jiping. “From 1974 to 2007, we relied on the 108T dump truck. After Xiangdian Heavy Equipment was established in 2007, we developed the 220T dump truck in 2008 and achieved pilot production. This contributed to increased profit and business expansion.
“From a technical perspective, the large-tonnage dump truck has a different body structure, which poses great challenges in terms of manufacturing and parts. Our engineers made full use of a wide range of resources and overcame a lot of difficulties. ”
Growth will continue
China has imported more than 200 large-tonnage dump trucks for its economic development. A market survey carried out by Xiangdian Heavy Equipment suggests that demand will continue to grow in China – another reason for Xiangdian Heavy Equipment to manufacture the 300T dump truck.
Besides consolidating its leading position in the domestic dump truck market, Xiangdian Heavy Equipment has taken an active role in opening up new markets overseas. In May 2011, it signed an agreement with Australian mining giant, Rio Tinto, to export mining dump trucks.
Exporting heavy-duty dump trucks
According to the agreement, Xiangdian Heavy Equipment will manufacture custom-made 220T electric wheel dump trucks for Rio Tinto. This co-operation establishes the first export of China-made heavy-duty dump trucks with independent intellectual property rights.
“We started negotiations with Rio Tinto in 2008,” says Li. “They made an assessment of our quality system, technical exchange, customer support and other aspects of our service. In turn, we also visited their mines. The contract was finalised following negotiations on design and the manufacture of parts and the finished truck.”
Li adds that Xiangdian agrees with Rio Tinto’s philosophy of striving for perfection and that the two parties are committed to achieving mutual benefits. “We are capable of developing and manufacturing world-class dump trucks, while Rio Tinto’s substantial experience in the use of mining equipment may help us enhance product performance and competitiveness.
"For China’s equipment manufacturing industry, the co-operation marks the first time dump trucks have been exported, which is a confidence builder for our national industry.”
Xiangdian Heavy Equipment plans to go public in 2012, and preparations are already under way. “Getting listed in itself is not the real goal, but a way to expand business,” says Li.
“We aim to provide high-end products, develop advanced technology and capture a global market, and meanwhile we are working hard to improve existing products and provide customers with reliable equipment.”
For the long-term plan, Xiangdian Heavy Equipment will increase annual production to 200 dump trucks, become a world-class dump truck manufacturer and break new ground in heavy equipment manufacturing in China.
