(Yicai) Oct. 22 -- Chinese heavy equipment manufacturers are finding fresh momentum abroad even as global trade faces “de-globalization” pressures. Through innovation and stronger product competitiveness, firms like Shandong Heavy Industry Group and its subsidiaries are seeing exports grow rapidly, company executives told Yicai.

Shandong Heavy's revenue from exports climbed between 6 percent and 7 percent in the first nine months to CNY72.7 billion (USD10 billion), Deputy General Manager Zhang Gengsheng told Yicai. Full-year exports are on track to reach the target of CNY100 billion (USD13.8 billion).

"Over the past five years, the Jinan-based company's exports have quadrupled,” Zhang said. “Rapid growth in the Middle East, Africa, Southeast Asia, Latin America and other regions has presented new opportunities for Chinese equipment manufacturers."

Despite economic headwinds at home and abroad, as well as rising competition from the new energy vehicle boom, business has remained strong and stable, said Ma Changhai, chairman of Weichai Power, which is Shandong Heavy’s engine manufacturing arm. In the first six months, operating income jumped 6 percent from the year before to CNY250 billion (USD34.5 billion).

The rise of emerging industries has also brought fresh opportunities for Weichai Power. The AI boom is driving a surge in data centers that are equipped with large-bore diesel engines as backup power sources, Ma said. “We have seized this opportunity and our sales of these engines quintupled in the first three quarters year on year.”

Ma added that future growth will mainly come from exports. Weichai’s engine exports surged over 30 percent from January to September from a year earlier, hitting a record high.

“Weichai Lovol Intelligent Agriculture invests CNY1 billion (USD138 million) in R&D every year, focusing on the Chinese, Japanese and European markets,” said Wang Guiman, chairman of the country’s largest agricultural machinery manufacturer, which is a subsidiary of Weichai.

Sinotruck Group, the heavy-duty truck unit of Shandong Heavy, logged a 24.5 percent jump in exports in the first three quarters to 111,000 units, maintaining its top position among China's heavy-truck exporters, said Chairman Liu Zhengtao. In September, it exported over 15,000 units, setting a new monthly export record for Chinese truck makers. Sales to Africa soared 37.4 percent year-on-year, sales to Southeast Asia surged 41.5 percent, and sales to the Middle East jumped 28.7 percent.

Zhongtong Bus, another subsidiary, has recently won large orders from the Middle East, Kyrgyzstan, Chile and other regions.

“Zhongtong Bus has consistently spent over 5 percent of annual revenue on research and development, and has set up a dedicated product development system for overseas markets,” Chairman Wang Xingfu told Yicai. “We tailor our products to the specific needs of different markets, for example, developing buses that can handle Dubai’s high temperatures and sandy conditions, or Chile's unique routes."

Looking ahead, Shandong Heavy will continue to finetune its understanding of the specific needs in overseas markets and speed up product upgrades, said General Manager Wang Zhijian. "As we realize the localized production of vehicles and machinery, we will at the same time help our suppliers to 'go global.’"

Editors: Tang Shihua, Kim Taylor