XRMC on the hunt for Middle Eastern distributors

Chinese road construction equipment manufacturer, XRMC, is currently searching for distributors operating in Saudi Arabia, Qatar, and Kuwait

Zhau is confident that this is the right time for XRMC to enter the Middle East's road construction sector.
Zhau is confident that this is the right time for XRMC to enter the Middle East's road construction sector.

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XRMC has revealed that it is looking for distributors in the Middle East.

The Chinese road equipment manufacturer told PMV that although it is interested in representation across the region, its countries of greatest interest are Saudi Arabia, Qatar, and Kuwait.

The firm has selected these target markets based on criteria such as infrastructure investment, social stability, and levels of demand.

"We are on the hunt for distributors in the Middle East," said Andy Zhau, sales manager at the International Department of CCCC Xi'an Road Construction Machinery, XMRC's parent company.

"Right now, our primary focuses are Saudi Arabia, Qatar, and Kuwait. XRMC already has some machinery working in the region. For example, I sold an asphalt mixing plant to Iraq back in 2010. However, the sales that we do make in the Middle East tend to be conducted directly, or as one-offs. We are looking for permanent agents in the territory," he explained.

XRMC already has established representatives in 43 countries, across regions such as Africa, Russia, Central Asia, and Southeast Asia. The Middle East, according to Zhau, is the next step for the company.

"Right now, we are focusing on Saudi Arabia, Qatar, and Kuwait," he told PMV.

"There is a lot of infrastructure development taking place in these countries; high levels of demand for the types of equipment that we produce.

"Also, these countries are stable from a social perspective. Some countries in the Middle East, like Lybia, for example, are not so stable. It would be difficult for us to tap markets such as these. We're looking for the safest countries in which to grow our business, but also, countries in which there is sufficient demand to make it worthwhile," said Zhau.

When asked why prospective distributors might want to partner with XRMC, Zhau cited the manufacturer's long heritage on the domestic market.

"XRMC is one of the oldest and largest Chinese companies to specialise in road construction machinery," he explained.

"The company was established in 1959, and we research, develop, and manufacture all of our products here. As such, this is our biggest market. China has been through a period of rapid growth over the last 30 years, ever since it opened up its markets to the rest of the world. XRMC machinery has facilitated this development, and we have dealed a great deal of experience during this time," said Zhau.

Whilst the manufacturer is happy for interested Middle Eastern distributors to approach them, it's also making proactive efforts to identify suitable partners.

"This is a brand new strategy of ours," explained Zhau.

"We are happy to talk to established distributors in the region that are interested in supplying high-quality, Chinese-manufactured road construction equipment to their respective markets.

"However, we'll also be travelling to Doha next year for Project Qatar 2015. This, we believe, will be an ideal platform to meet with prospective partners from across the Middle East," he concluded.

XRMC is currently exhibiting its machinery at Bauma China 2014 in Shanghai. For in-depth coverage of the trade show, check out the January 2015 issue of PMV Middle East

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PMV Middle East - May 2018

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