foreword
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An industry of heavyweights Construction machinery and heavy equipment is at the centre of any jobsite, as any site manager will tell you. The production expertise for these engineering machines has been built up within individual companies over many decades, sometimes even longer than a century. In this book you will find the stories of many of the world’s biggest manufacturers. This region also boasts of some of the biggest dealers in the world, and we’ve listed those that often push themselves to the edge to make sure that projects and contractors continue to excel. Here in the Middle East these machines work in some of the harshest conditions imaginable. This book looks at those machines and manufacturers that have taken on the challenge and continue to stretch the definition of what was previously thought impossible. The fact that much of this physicsdefying work is being conducted in this region is a sign of how important the Middle East is to the global construction machinery industry. Welcome to the land of the giants, welcome to Construction Machinery’s Heavyweights.
contents
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Contents 06
Al-QAhtAni Vehicle & MAchinery co.
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cAse
14
cAterpillAr
18
JAspA
22
KAnoo MAchinery
26
liuGonG MAchinery
30
MAnitowoc
34
nFt
38
putzMeister
42
ritchie Bros. Auctioneers
46
shAntui iMport & export coMpAny
50
terex
54
VolVo
58
zAFco
Al-QAhtAni Vehicle & MAchinery co.
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e l c i h e V i n a t h a Q Al. o C y r e n i h c a M &
Al-QAhtAni Vehicle & MAchinery co.
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Al-Qahtani first started in 2006 and is now one of KSA’s leading distributors In just seven years it has sold 4,000 machines and 1,250 commercial vehicles The company is supplying to major O&G projects as well as Africa and Iraq
A
l-Qahtani Vehicle & Machinery Co. was first established in 2006. Today, the company has ten agencies and distributorships. Its key customers and markets are Aramco, the oil & gas sector, the construction sector with all its sub-sectors, the industrial sector, port operations, the public and governmental sector, and many more. Al-Qahtani employs 300 employees, 70% of which are in aftersales support departments, demonstrating its dedication
to the customer long after the sale has been completed. Al-Qahtani is the dealer for Chinese brand LiuGong’s heavy equipment in the Kingdom of Saudi Arabia, as well as Terex, Genie, Boge, Atmos and many others. Its product offering comes equipped with the latest innovations when it comes to safety and technology. These include, but are not limited to: safety devices, safety decals, easy to use/ operate/diagnose machinery with clear instructions manuals and documentation,
engine fuel management systems, alarm lights/sounds, plus much more. The services from Al-Qahtani also differ because they are derived from its mission to place the client at the core of its attention, often through a pro-active style of consultancy, cooperation and partnership. Its aftersales operations boasts very high parts availability unrivalled in the Kingdom of Saudi Arabia. Holding more than 16,000 line items, the value of the parts in its inventory value of more than $10 million.
Al-QAhtAni Vehicle & MAchinery co.
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Al-QAhtAni Vehicle & MAchinery co.
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well equipped Al-qahtani holds more than 16,000 line items, the value of the parts in its inventory is worth more than $10 million.
Recently, it has opened a main spare parts warehouse in Dammam with more than 4,000 m2 of shelved covered area which is complement by 4,000m2 of open area, making it one of the largest spare parts warehouses in KSA. It has also launched an online parts ordering system. An expansion of its 2,200m2 workshop has now been completed and Al Qahtani has invested in a range of services, including workshops that can handle components, a used equipment and machining. Like its afterparts operation, its service facility can be considered one of the most advanced facilities in the Kingdom – allowing it to offer comprehensive solutions for clients. Al-Qahtani has introduced major new products to customers: the LiuGong TC250 and TC500 mobile truck crane, the LiuGong 365A skid steer loader, as well as the Zowell range of warehouse material lifting equipment. The Saudi market is full of opportunities for Al-Qahtani, especially for small- and medium-sized equipment along with lifting and material handling equipment, and is expecting to gain significant market share with the products in 2014. Since its establishment, Al Qahtani
Vehicle & Machinery Co. has been successful in securing many major deals over the years, including supplying 150 units to the Khurais Gas Plant project, 80 units for the Shaybah-Abqaiq Pipeline (Shabab 2), and 60 units for the Shedgum NGL Pipeline Expansion (SHY 1). The company is also a major supplier in international terms, and supplied 25 earthmovers on a rental basis for the New Airport Project at Dakkar, Senegal. Expansion at Al-Qahtani has been relentless in terms of product ranges, manpower and infrastructure facilities. A new branch opened in 2014 to serve the Western region of KSA, and it continues to develop its large branch in the Southern area of Abha, the largest in the area in terms of service facilities, parts warehousing and sales showroom. The company has enjoyed annual horizontal and vertical growth since 2006 and it succeeded to make strategic deals in the western region with selected key customers in 2013 and in 2014. Underlying its success to date has been a commitment to giving full market intelligence to supplier/manufacturer
partners helping them innovate and develop products ideal for the market. Teams are developed and trained to qualify them in their specialisation, helping serve clients to the highest industry standards. In 2014, the company opened an advanced training centre in the Eastern Region, equipped with modern training aids and technologically advanced learning methods in order to help customers improve productivity. “We believe that we are the future of construction equipment in the Kingdom of Saudi Arabia through our perspective of the Train of (T)s,” says Khaled El Shatoury, Managing Director of Al-Qahtani Vehicle & Machinery Co. “Talent given by God; Technology provided by suppliers, Teaming by ourselves, Then Train our team, and giving them a certain Target, supported by different Techniques, giving them the right Tools, controlling Timing, Tolerance limitation, offering Tailored solutions, following-up through Tracking system, and applying Total Quality Management in all levels to gaining client Trust, resulting in Total Client Satisfaction, ended by Total Management Success.”
CONTACT Head Office: PO Box 20, Dammam 31411, Kingdom Of Saudi Arabia Tel Dammam: +966 13 802 4938 Tel Riyadh: +966 11 230 3613 Tel Abha: +966 17 227 2471 Fax Dammam: +966 13 826 9894 Fax Riyadh: +966 11 209 8767 Fax Abha: +966 17 227 6284 E-mail: info@ahqmachinery.com www.ahqsons.com
CASE
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Case
W Best known for compact and heavy earthmovers such as: skid steers, backhoes and wheel loaders
ith a history dating back to 1842, the CASE Corporation has spent a long time doing things the right way. Its founder, Jerome Increase Case was the first man to design steam engines specifically for farm use. Very quickly, the company he founded became synonymous with the steam engine and by 1912, had moved into the construction equipment sector, leading to the creation of CASE Construction. Today, the firm is part of the CNH Industrial Group, one of the world’s leading capital goods manufacturers, with CASE Construction being a full-range manufacturer of earth-moving machinery, as well as the Group’s pathway into the construction industry, says Dragan Krznaric, business director, CE Middle East. As part of its global strategy, CASE Construction offers a broad range of earth-moving machinery that has been specifically designed to answer local needs and demands. Its main markets are in North and South America, the Middle East, Africa, Europe and India, Krznaric adds. “We offer earth-moving machinery specifically designed for local conditions and applications in different areas of the world. While machines destined for European and North American markets feature many advanced applications and support features (from legally required Tier IV final engines to telematics solutions), machines designed for emerging markets feature robustness and simplicity, combined with ease of operation and maintenance,” he says. Krznaric cites the introduction of the new 570T backhoe loader as an example of CASE’s commitment to emerging markets. Specifically designed for those markets, he says it is an example of how the company is
focused on further strengthening its service capabilities in the Middle East, along with the introduction of telematics solutions and a wider range of service agreements, which are in line with the best industry standards. “With ever-growing pressure on contractors to get more work done with less resources and within shorter time, aftermarket support to obtain productivity and uptime is constantly growing in importance,” he explains. “On the other hand, for some applications, better cost-effectiveness is achieved by using less complex, downsized products that are fit for the job, but not burdened with over-engineering and unnecessary options that add to the cost, but bring no real benefits. So CASE is actively developing solutions and products to attend to both ends of the spectrum, productivity-
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across the board CASE develops solutions and products that attend to customers on both ends of the spectrum.
CASE
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focused, as well as cost-focused.” Amongst the many benchmarks reached by the company in 2014, some of the biggest successes have been supplying machinery to major projects like the Dubai Airport runway refurbishment, the Mall of the Emirates extension, the Riyadh Metro and the Mile Tower in Jeddah. “That has certainly to do mostly with strengthening of both our own organization in the Middle East, through expansion of our Dubai-based regional hub, as well as continuous investments by our dealer-partners in development of their support capabilities,” Krznaric says. For its plans in 2015, Krznaric says that although CASE aren’t planning any major launches this year, they remain focused on
the build-up of existing network capacity. “As all major locations in the region are covered, further small but continuous steps should enable CASE to refine its solid base in the Middle East. In terms of locations, we are currently looking into ways to further strengthen our presence in Iraq, which is anything but easy, considering all the challenges and complexities the country is facing. But we are taking a mid-to-long term view and see it as an investment in the future,” he adds. Away from the market, Krznaric says that CASE will continue with its plans for research and development as part of its commitment to quality, safety and reliability. “CASE Construction is constantly keeping up with highest industry
standards related to quality, safety and reliability of our machines, through investments that are measured in tens of millions of dollars a year. “If I’d need to point out to a single main driver of innovation that would certainly be our Group’s powertrain division, which is at the cutting edge in terms of engine technology and in the forefront in terms of volumes produced (over 500,000 engines a year),” he asserts. “The CASE name has been associated for more than 170 years with quality products helping build our world, and we intend to be around for at least another 170, by offering robust, reliable and easy to use machines that help our customers do their job.”
CASE
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Long term view Dragan Krznaric says that CASE are taking a mid-tolong term view of the Iraqi construction market.
CONTACT IVECO Regional Representative Office DAFZA – Dubai Airport Free Zone West Wing 4, Floor 6 PO Box 54588, Dubai, UAE Tel: +971 4 299 4935 www.casece.com www.cnh.com
CATERPILLAR
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r a l l i p Cater
CATERPILLAR
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Best known for: Wheel loaders Excavators Off-Highway trucks Motor graders Asphalt pavers
D
espite being a company whose machines are not known for being cheap, Caterpillar’s goal is to sell machines with the lowest total cost of operation and ownership. Caterpillar, the world’s biggest manufacturer of heavy equipment. is both a global player and a dominant force in the Middle East market. The Caterpillar Tractor Company, forerunner of today’s Caterpillar, Inc, was formed in May 1925 from the merger of competitors C. L. Best Gas Tractor Company and Holt Caterpillar Company. Both of those concerns, meanwhile, had been involved in producing farm equipment, especially in the central valley of California, and later in the Midwest of the US, since the latter half of the 19th Century.
GLOBAL NETWORK Caterpillar sells equipment in 200 countries and territories, and has 94 plants in the U.S. and another 84 facilities overseas.
As a large manufacturing company, Caterpillar has had to carefully manage operations in anticipation of upturns and downturns. The 1981-1982 recession was particularly challenging and severely strained corporate finances. The downturn led to a dramatic decline in equipment demand, which, combined with competition from Japan’s Komatsu, resulted in Caterpillar losing $1 million a day at one point. In recent years, the machinery giant has sought to maximise its operating performance utilising various efficiency and cost-control methods. One recent, significant example of this effort is the Caterpillar Production System (CPS) with Six Sigma. CPS, similar to the Toyota Production System, organises manufacturing and logistics with the aim of optimizing the order-to-delivery
process. The system is largely based on just-in-time inventory management and lean manufacturing principles. Today, Caterpillar sells equipment in 200 countries and territories, and has 94 plants in the US and another 84 facilities overseas. The company has a global network of some 130 dealers (and 50 domestic US dealers). Employment is around 118,500. Sales and revenues in 2013 were about $55 billion (with over two-thirds of its sales coming from its international business). Caterpillar’s business lines are divided into three general categories, Machinery, Engines and Financial Products. With construction spending declining in the developed world, Caterpillar has prioritised moving into developing markets for some years. The company built a facility
CATERPILLAR
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CATERPILLAR
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LOCAL FOCUS The Middle East is a major priority for the company.
in Russia in 1999 and in the People’s Republic of China (PRC) in 2009. Availability of spare parts is a major contributor to timely repairs and consistent uptime, and in March 2013, Caterpillar opened its Middle East Distribution Centre (MEDC), a 47,030 sqm facility in the Jebel Ali Freezone with 130 staff. At the time it was one of only eight Caterpillar distribution centres outside North America, and the only facility of this scale in the Middle East for their construction machinery industry. Designed to move spare parts quicker to customers in the Middle East and North Africa, the facility is now running at optimal, following the synchronisation of dealers’ spare parts inventories last year. “Caterpillar’s Middle East Distribution Centre signifies an important investment in the region and a dedication to the perennial progress of the Middle East economy,”
said Zahid Tractor’s EVP Fahad Y Zahid. “The enhanced logistics and service offering the new MEDC will enable us to offer will not only benefit our direct clients, but it will also serve to improve efficiency of operations across a variety of sectors in Saudi Arabia. Our partnership with Caterpillar has played an integral and vital role in the development of the Kingdom’s construction industry for more than 60 years.” Caterpillar has also launched several key models developed specifically to respond to customer needs in the Middle East , such as the new 950 GC wheel loader, the 320D2L hydraulic excavator and the 988K loader. “These are products that are being designed for what customers tell us they want. They don’t necessarily want the latest generation technology integrated in – they want more simple machines for operators, but with
the same reliable CAT DNA. From a product position, we’re absolutely committed,” says Nigel Lewis, Vice President of Distribution Services Division EAME for Caterpillar. In second-hand sales, Caterpillar machines command some of the highest sale prices, a good indication of the market’s appraisal of their equipment, and an important aspect of reducing ownership costs, since customers can sell machines for a decent amount if they want to update their fleet. “Residual values are also important – customers see this,” explains Lewis. “That really gives me a lot of confidence that what we’re doing is on the right path. When I look at the macro picture and think about how the market recognises Caterpillar machine value, I think there are a few touch points that tell us we’re very good value for money. And we deliver on what we promise.”
CONTACT Caterpillar 100 NE Adams St Peoria, IL 61629 Tel: +1 (309) 675-1000 Fax: +1 (309) 675-6620 www.caterpillar.com
JASPA
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Jaspa
JASPA
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A Jaspa holds operational locations in Abu Dhabi, Jebel Ali, and China
home-grown organisation, Jaspa was established in the UAE in 1981 as the sole distributor of Orient Fans. Founded by owners with an extensive family history of import and distribution enterprise, the company has seen tremendous success over the 30 plus years it has been in operation. After more than a decade of success, in 1993, the company decided that the time was right for them to diversify and enter the automotive supply field. Within a few years they quickly became known as specialised distributors for truck and bus tyres. On the back of this reputation, the company was appointed as the sole representative for the world renowned tyre manufacturer, Longmarch. In addition, Jaspa launched a construction sector division in 1991 that aimed to ‘deliver premium waterproofing admixtures and reference sands to the construction industry’. Based in Dubai and managed by an experienced team that is headquartered in the city, it also holds operational locations in Abu Dhabi, Jebel Ali and China, giving it the ability and infrastructure to supply to any part of the GCC or African regions through its logistics hub. The company also maintains closed warehouse facilities of more than 4,645sqm, says Pranay Mehta, division manager for Jaspa. “This facility maintains reserve stocks in a wide range of products throughout the year. Jaspa complies with the best-practice inventory management and quality control to ensure that customer specifications and product standards are always met,” he says.
Complete order Jaspa uses an integrated ERP system to ensure complete order tracking and order execution.
JASPA
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JASPA
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“Through an integrated ERP system, the company ensures complete order tracking and timely order execution. The Jaspa office in China conducts regular inspections on production to maintain strict quality standards, which helps give our customers peace of mind,” Pranay adds. Furthermore, there is a trained in-house freight forwarding team that can support customer requests to organise exports through trans-shipments or direct shipments to their destination countries, he says. With the main area of focus the GCC countries, with an emphasis on operations in the UAE, the company currently employs
a staff of 50 people, with plans to expand that number. Pranay says that his division has been focused on employing new staff in the sales and technical department as part of a strategy to strengthen customer service. “Jaspa believes in working very closely with the end users and providing them with aftermarket service. We understand customer requirement and offer products that suit their application and needs,” he explains. So successful has this strategy been, Pranay says that the last 12 months has seen his firm become the agents of five major brands. They are: FINIXX Puncture
free Safety tyres in the PCR and LTR segment, OKO puncture free tyre sealant from UK – which is a product that is suitable for all segments vehicles, Nexen Solid tyres from KOREA and BOTO OTR Radial tyres for heavy construction machinery. Most excitingly, he reveals that Jaspa has started its own brand of tyres, “ROADWEST”, which will target the truck and bus segment of the market. Should progress continue as it has for the last year, Pranay says that his company will look to expand its focus and aim to make presence in Oman, Saudi Arabian and Qatar markets.
CONTACT JASPA General Trading Co LLC PO Box 5357 Tel: +971 4 224 9353 Toll Free: 800-JASA(5272) Fax: +971 4 223 3551 Email: tyres@jaspa.com www.jaspa.com
kanoo machinery
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y r e n i h c a M o o n a K
H
ere yesterday, here today and here tomorrow - Kanoo Machinery and Commercial is a name you can rely on” is the mantra that has served one of the region’s best known names for several decades. Since its inception, the Kanoo Group has diversified its interests to include shipping, travel, logistics, oil & gas, power, chemicals, joint ventures and equipment rental, among many other sectors. From its humble start in the mid-1960s,
Best known for: Grove Cranes Hyster Forklifts Bobcat Compact Equipment, Hitachi Excavators and Wheel Loaders
the Kanoo Machinery and Commercial Division of the Kanoo Group has helped the region grow to what we see today. From the cranes that helped place the pipes into the desert to the earthmoving machines that paved the way, the Kanoo Machinery and Commercial Division has had a helping hand. Today, the Kanoo Machinery and Commercial Division says that it proudly represents “the cream of the crop in the machinery field”. It has grown to become
kanoo machinery
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Great Line-up Kanoo Machinery and Commercial can boast some of the best-known names in the machinery industry.
kanoo machinery
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kanoo machinery
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one of the leading materials handling, construction, agriculture, cleaning and industrial equipment distributors in the Gulf. Kanoo offers a huge range of equipment, from general application machines such as Grove cranes and Hyster forklifts to more specific applications machines such as Lincoln arc-welding machines and Tennant road sweepers and scrubbers. Brands in the Kanoo Machinery Commercial Division ranks include Grove Cranes, Hyster Forklifts, Bobcat’s Compact Equipment and Telehandlers, Hitachi Excavators and Wheel Loaders, Hitachi Sumitomo Crawler Cranes, Massey Ferguson, Norton Grinding Wheels, Lincoln Welding equipment, Ferguson Tractors, Tennant Sweepers Scrubbers, Perkins Engines, Dig-Dog Buckets and Spares and Ausa Dumpres. “This is all part of our continuous
effort to provide the best possible products to our highly selective customers,” says the company. From its newly constructed location in Dubai to its state-of-the-art facility in Abu Dhabi, Kanoo Machinery Commercial Division prides itself with stocking a large amount of genuine manufacturer’s spare parts that ensures the least downtime for its customers. Products from its principals are marketed through dedicated product specialists from sales and the aftermarket who are available in all the five of its branches (Dubai, Abu Dhabi, Al Ain, Sharjah and RAK) in the UAE. Kanoo Machinery carries an inventory of parts in excess of US $ 5 million. Fast moving parts are stocked in all branches whilst on-line link to regional warehouses in Saudi Arabia and Bahrain. As one of the few truly regional multi-
principled machinery and commercial companies, Kanoo covers clients from Saudi Arabia, Bahrain, the UAE, Oman and now Yemen. Kanoo Machinery is consequently delivering its highly praised for quality service standards - which are based on ISO9001:2008 certification and have seen it achieve prestigious accolades and awards such as Sheikh Khalifa Excellence Award and the Dubai Quality Award – across the region. “With the support from our regional locations throughout the Gulf, we put in the maximum effort to ensure our customer’s needs are met,” says the company. Kanoo Machinery is a member of The Kanoo Group, one of the largest family-owned business groups in the region, with over 100 years of experience in the Gulf, Middle East and international markets. Today, Kanoo Machinery operates in the UAE, Bahrain, Saudi Arabia, Oman, Qatar and Yemen.
CONTACT Abu Dhabi kanoo machinery & commercial Division Po Box 245 abu Dhabi, United arab emirates Tel: +971 2 555 3737 Fax: +971 2 555 4366 email: kanoocom@emirates.net.ae Dubai kanoo machinery & commercial Division Po Box 290 Dubai, United arab emirates Tel: +971 4 337 8400 Fax: +971 4 337 3660 email: kanoocom@emirates.net.ae
LIUGONG
26
g n o G Liu
LIUGONG
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New in 2014: The acquisition of Dressta’s range of bulldozers and pipelayers hit the GCC
L
iuGong is one of China’s best known manufacturer of high-quality construction equipment and an ISO 9001 quality-certified company. It has operated in the MENA region for over a decade and in 2011 expanded its Middle East footprint via its subsidiary, LiuGong Machinery Middle East FZE, located in Jebel Ali Free Zone, Dubai, United Arab Emirates. LiuGong says its mission is to provide customers with first class construction machinery and service. ‘’Quality, honesty and service is our principle. Our loyalty and commitments
Robust kit LiuGong specialises in equipment that is easy to own and easy to operate, and features technologies with well proven reliability.
remain successfully at your service.” LiuGong Machinery Middle East has 20 key dealers providing it with the regional coverage it needs. Support comes from the Jebel Ali spare parts distribution centre which also serves as the regional sales office and provides technical support to the company’s large customer base in the region. The spare parts warehouse facility boasts a sprawling area of more than 3,300sqm and is equipped with an automated warehouse management system for electronic scanning, allocation, order picking and packaging of the spare parts.
“The newly updated IT system (SAP) was installed and has worked perfectly to manage our warehouse and logistics. And all these lead us to a higher level to give supports to our partners, dealers and customers by the very efficient way,” says LiuGong. Major MENA markets for LiuGong Machinery include the UAE, Oman, Kuwait, Qatar and Morocco. The manufacturer says its strongest markets are currently Saudi Arabia (where machines are working on the new Jizan port), Algeria, Ethiopia, Sudan. LiuGong specialises in supplying construction machinery equipment that
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is easy to own and easy to operate and features technologies with well proven reliability. LiuGong’s product range includes wheel loaders, backhoes, excavators, rollers, motor graders, skid steer loaders, bulldozers, forklifts and concrete equipment. LiuGong’s claim that its machines are uniquely suited to rapidly growing emerging markets seems a valid one considering the environment in China that nurtures their designs is known to be one of the toughest in the world. Especially, in terms of run times between maintenance, harsh work environments, cost demands, and rough operating conditions. LiuGong machines use proven technologies and thrive in these rigorous settings – they are highly efficient, durable, simple to run, easy to service and offer affordable value. The company purchased bulldozer and pipelayer brand Dressta in 2012 along with its manufacturing facility in Poland. The line is being rolled out in the MENA market with LiuGong confident the reliable machines will be deployed on the many infrastructure projects in the region. It also expect Dressta’s big size dozers to “be very helpful to contractors with high efficiency”. New products to be launched in 2015 include the new generation H-series wheel loaders. First will be the new 17.8t wheel loader with a 5t payload, the 856H, replacing the current 856G. The machine makes extensive use of technology from LiuGong’s two major joint ventures in China, with engine producer Cummins and axle and gearbox producer ZF. The 5t payload machine will eventually be followed by a 9t payload class loader, and machines with 7-8t, 3t and 4t
LIUGONG
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payloads will all be introduced to the market over the next 18 months. The Middle East version will use a GCIC engine, produced out of the LiuGong-Cummins joint venture, with a power curve specifically developed for wheel loaders. In the Middle East, most machines will be sold with axles and transmissions from the ZF-LiuGong JV. The project to design the H-series began in 2010, says David Beatenbough, vice president of LiuGong, who is in charge
of LiuGong’s research and development. “This is the first time that we’ve done a true integrated design from the ground up for a wheel loader.” The machines have been designed by the LiuGong team with all the component systems integrated, including the software controller. Common features across the range will be improved fuel efficiency, a new and wider cabin and improved rear visibility. The machines have been developed by LiuGong’s internal industrial design team, the first project they have worked on.
CONTACT Zhu Xiong Bing LiuGong Machinery (Middle East) FZE RA 08 YB05 Blue shed, Jebel Ali, Dubai, UAE Tel: +971 4 887 0641 Fax: +971 4 887 0642 Email: lgme@liugong.com www.liugong.com
MANITOWOC
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c o w o Manit
MANITOWOC
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Best known for: Manitowoc cranes, Grove cranes, Grove YardBoss, Shuttlelift carry deck cranes, Potain cranes, National Cranes
M
anitowoc was founded in the lakeshore community of Manitowoc, Wisconsin, in 1902 as a shipbuilding and ship-repair organisation. The company has evolved and diversified since entering the lattice-boom crane business in the mid-1920’s and branching into commercial refrigeration equipment shortly after World War II. In the century and more that has passed, Manitowoc has grown into a global, multi-industry success story. Today, the company is comprised of two segments
GLOBAL REACH Manitowoc has operations in 26 countries around the world, and will continue to expand the global reach of products and services to meet the needs of its customers.
– cranes and foodservice equipment. In each of these segments Manitowoc is the industry leader in market share, product innovation, and product support services. Manitowoc has operations in 26 countries around the world, and is continuing to expand the global reach of our products and services to meet the needs of its customers. Manitowoc acquired the Potain brand in 2001, followed by Grove and National Crane in 2002 (the announcement to acquire Grove Worldwide was famously made in March 2002 at CONEXPO in Las Vegas).
Manitowoc purchased Grove for $271 million. In 2007, Manitowoc announced its acquisition of Shirke, an India-based Potain manufacturer and distributor since 1982. Manitowoc’s Grove product line includes rough-terrain, truck-mounted, all-terrain, Grove YardBoss, industrial cranes and Shuttlelift Carrydeck cranes. Grove is also a major supplier of custom-built machines to armed forces around the world. As a manufacturer, it has achieved a number of ‘firsts’ in the course of its history, including introducing the world’s first slewing
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rough terrain crane in 1968 and the world’s first trapezoidal boom in 1970; and by becoming the first international multi-facility crane manufacturer to receive the ISO 9001 quality assurance certification in 1994. The Manitowoc crawler crane product line has 16 products and two capacityenhancing attachments. Manitowoc latticeboom crawler cranes was the beginning of Manitowoc Cranes until the major acquisitions in 2001. In 1969, Manitowoc introduced its flagship crane, the Model 4100W. Manitowoc introduced its first self-erecting, all-hydraulic crane, the Model M-250, in 1992. Manitowoc also manufactures National Cranes, a line of articulating truck-mounted cranes. National Cranes was founded in Nebraska by Marlo Burg in 1947, and began by manufacturing roadside weed sprayers. In 1952, National also introduced a line of front-end loaders. Operations were moved to Waverly, Nebraska in 1962, and the name National Crane Corporation was adopted. After ownership passed through a number of companies, Manitowoc acquired National Cranes in 2002, and all production moved to the Shady Grove, Pennsylvania facility in 2003. Potain is the Manitowoc’s brand of tower cranes – featuring both top-slewing and self-erecting models. Potain was a Frenchbased company founded in La Clayette, France, in 1928 by Faustin Potain and its first crane was assembled in 1933. Manitowoc Crane Care is the customer service branch of Manitowoc Cranes. Formed in 2000, Crane Care provides customers with parts, service and technical support, technical publications, training, and EnCORE. The EnCORE programme rebuilds and repairs rundown or damaged cranes. Manitowoc Crane Care operates in 15 countries at 22 locations.
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FIRST FOR QUALITY Manitowoc was the first international multi-facility crane manufacturer to receive the ISO 9001 quality assurance certification in 1994.
CONTACT Manitowoc PO Box 261734, Jebel Ali Free Zone, South Side - Dubai Tel: +971 4 886 2677 Fax: +971 4 886 2678 Email: info@manitowoc.com www.manitowoccranes.com
NFT
34
NFT
NFT
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Best known for: Princess Noura University, KAUST, KAFD, Barwa Financial District, JBR
I
n terms of construction machinery suppliers in the Middle East, you can’t get much higher than NFT Cranes (NFT stands for Nouman Fouad Trading). A growth spurt which saw it amass hundreds of towers at the end of the last decade took the once Saudi and now Abu Dhabi-based dealer to the top of the tree during the boom. Half a decade later and its synomonous partner Potain’s cranes still line the roads leading into the UAE capital. Like the islands of Saadiyat and Al Reem, the industry climate has changed vastly since the heady days of 2008. NFT was once at the centre of a spending spree on towers that captured the imagination of the world’s media. In the aftermath of the global economic downturn, the cranes became a
Global force Globally second in terms of the number of cranes, NfT reigns over its US and european counterparts in terms of tonnage and capacity.
key statistic for those wanting to use the UAE and Dubai, in particular, as an example of how untenable ambition leads to inevitable decline. While many of its peers within the Middle East were burdened with their inventories, NFT has instead embarked on a deliberate global programme to distribute his cranes as far and as wide as possible. As the old saying goes, out of necessity comes change. NFT’s managing partner Nabil Al Zahlawi remains inarguably one of the most recognisable figures in the industry and is frequently asked for his views on the market. He has embarked on turning NFT into one of the world’s biggest traders of tower cranes pushing his rental fleet into markets as wideranging as North America and the Far East. “After the financial crash of the last
decade, NFT changed its business model from Dubai to Asia and moved a big part of its cranes business to India, Taiwan, Hong Kong and Korea,” he explains. NFT accounts for more than over 60% of the cranes market in the Middle East and has expanded its capability geographically to other markets like India, the Far East, Canada and other locations. At the height of the Dubai boom, the company had 1000 cranes in its fleet, though this number dropped to 500, with cranes moved to other markets where NFT operates outside of the Middle East, while in 2014 the company had 700 cranes operating in the region. As Zahlawi knows all too well, the Middle East markets are challenging to work in
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eXPaNSIoN PlaNS NfT accounts for more than 60% of the cranes in the region and is expandingin the far east, canada, Turkey, and elsewhere.
for rental operators, both due to the harsh environmental conditions, as well as the expectation from contractors that rental companies have enough cranes at all times to satisfy their needs. Sometimes a call can come in, with the contractor hoping to have cranes the next day; only those with a large fleet in reserve can hope to be competitive. Illustrating the point, Zahlawi refers to the King Abdullah University for Science and University close to Jeddah. “Saudi Oger said we need 58 cranes, quickly. The next day we started putting in the cranes; we used whatever we had,” he says. “Princess Noura was a different story. We knew the project was coming and I took the decision to buy the cranes before
signing the contract. This is something nobody (else) can do. We sold 40 cranes to the customer and erected about 150 from our side. In the first day after we had been awarded the job we delivered 35 trucks. “On a daily basis there were between 25 and 35 trucks being delivered. Imagine the logistics, but this is a project where you make money. You either do it (make the investment) or somebody will take your place. I was not impressed by the size of Princess Noura but to build a university like that in 20 months, from nothing, is impressive.” Second in terms of the number of cranes, NFT reigns over its US and European counterparts in terms of tonnage and capacity. Thriving post-downturn in South
East Asia, Africa and even North America, NFT is finally at the top of the tree but al Zahlawi is not prepared to ease up. “I don’t where my next destination is,” he jokes. “But I hope to get a few days off.” Global expansion means global reach and NFT employs 20 teams to oversee crane erections. Each team is coordinated onsite by a construction manager who liaises with the NFT team and the contractor. “We send teams to Africa, to India; we have no limitations,” Zahlawi says. “(There is) no border with business. You have to catch the opportunity when you can. We are fast with everything we do, we negotiate the price right away and most importantly we have a good network.”
CONTACT NFT Specialised in Tower Cranes LLC Store 11, Mena Port, Abu Dhabi PO Box 28037, UAE Tel: +971 2 403 7555 www.nftcrane.com
putzmeister
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r e t s i e m z t Pu
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Best known for: Burj Al Arab Burj Khalifa King Abdullah Financial District New Doha Port Dubai Airport
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t starts with a waist-high scale drawing of the Burj Al Arab and ends at eye-level with the Burj Khalifa and Kingdom Tower - Putzmeister Middle East’s wall of honour, extending as it does down one side of its office, is an impressive way to great visitors. It is also a demonstration of the importance of its concrete pumps in helping to the region’s developers to build higher and higher. Putzmeister develops, produces and sells construction machinery worldwide, especially concrete pumps, for the building and mining
THE MASTER OF MORTAR IN THE MIDDLE EAST Putzmeister’s pumps have been deployed on a wide range of projects, but they have made their name working on prestigious projects such as the Burj Khalifa.
industries, as well as for tunnel construction and large-scale industrial projects. The beginnings of the German manufacturer’s history can be traced back to 1958, when Karl Schlecht started a company called KS-Maschinenbau in Aichtal near Stuttgart. Schlect, a trained mechanic, was only 25 years old at the time. Within a year of the company’s foundation, the very first mortar machine came into existence along with his master’s dissertation. In 1963, the name of KS-Maschinenbau was replaced by Putzmeister, which
means “master of mortar” in German. Putzmeister has been a major player of the concrete machinery industry ever since. Putzmeister’s ‘Elephant’ concrete pump gained its popularity in early 1970s, and has gradually made the company one of the global leaders in terms of market share, geographic coverage, technological advancement, and is offers one of the most comprehensive product ranges in the concrete pumping industry. Putzmeister sold its first product in China through its Hong Kong-based distributor in 1970s. It was a move that
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PUMPED UP Putzmeister enjoys a global marketshare of 40%. The Sany merger arguably puts it in a stronger position.
would decades later lead to one of the industry’s most famous acquisitions. The presence of German companies in China such as Putzmeister and its long-standing rival Schwing, ensured that they dominated the market for 20 years. However concrete pumps remained relatively small with the technology considered expensive in the nascent market. By the mid-1990s Putzmeister was established enough in the market to build its third factory in Songjiang District of Shanghai. However even as it better positioned itself in the fast developing market, competition was growing from within China. Therefore, market share kept falling even though sales grew in the next few years. By 2004 and 2005, the market share of Putzmeister had fallen to 6% to 8%, as it focused on high-end concrete pump trucks.
While China weakened, Putzmeister was still strong elsewhere, enjoying a global market share of 40%, generating more than 90% of its sales from outside Germany. Excluding Germany, Europe and North America contributed more than 75% of the sales. In the Middle East, Putzmeister’s contribution was crucial to a series of landmark projects, culminating with its world record breaking pumping operation on Burj Khalifa. Its entry into China came full circle in 2012, when it was purchased by Sany, the publically listed Chinese producer of construction machinery and the established market leader for concrete pumps in China. The merger raised concerns that Putzmeister would be swallowed up by Sany, but both companies moved quickly to explain that their business activities are highly complementary geographically and both partners benefit substantially from the
combination. The merger of the Chinese market leader in concrete pumps with the leading provider in most markets outside of China thus follows a clear strategic and industrial rationale: the creation of the global market leader for concrete pumps. Arguably Sany’s financial strength secures Putzmeister’s growth prospects and provides a significant competitive advantage – best typified by Putzmeister taking on truck mixer maker Intermix in 2012. At the same time, Sany adds to its portfolio technologically cutting-edge products and innovations “Made in Germany” and acquires a strong distribution and service network outside of China. For buyers in the Middle East, such as Saudi Arabia, the UAE and Oman (where it was one of the first OEMs to recognised its potential), this means that the master of mortar is still Putzmeister.
CONTACT Jumeirah Lakes towers swiss tower, Office 1403 pO Box 262657 Dubai, uAe tel: +971 4 454 27 83 Fax: +971 4 454 27 82 email: BawidamannJ@pmw.de www.putzmeister.de
RITCHIE BROS.
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. s o r B e i h c t i R
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Auction house An aerial view of the
In 2014, the number of bidder registrations for Ritchie Bros hit a record of 463,500
Ritchie Bros. facility in
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tarting out as a small familyrun business in Kelowna, British Columbia in Canada, Ritchie Bros. Auctioneers has grown into a global entity that conducts hundreds of unreserved public auctions around the world each year. Ritchie Bros. came into being in 1958, when the three founders – Ken, Dave and John Ritchie – needed to pay a bank debt. As a solution to their problem, they held their first unreserved auction in 1958, selling off CA$2,000 of surplus inventory from their used furniture store. Following on from this success, they decided to continue holding auctions for themselves and then expanding it to help other local businesses, eventually shifting decisively towards selling off industrial and agricultural equipment. Over the years, the demand for their services grew to such an extent that it
Jabel Ali Free Zone.
made sense for the company to expand across the North American continent. By the late 1980s, Ritchie Bros. had reached Europe, with the first auctions being held in the UK and the Netherlands. Ten years later, the first Middle East auction was held in Dubai’s Jebel Ali Free Zone, where auctions continue to be held until today. What had started out as a small, family owned business has grown into the world’s largest seller of heavy equipment and trucks. In fact, in 2014 alone, more than 319,500 equipment items and trucks were sold at Ritchie Bros.’ auctions, totalling $4.2 billion in gross auction proceeds. The secret to their success is that the company uses a powerful auction method and value adding services. This makes selling and buying industrial equipment easier, more efficient and more rewarding, the company says. Their auctions feature all kinds of construction, transport and agricultural
machinery from all around the world. In Dubai, the company’s auctions usually focus on heavy earthmoving equipment, construction and mining equipment. This includes anything from skid-steer and wheel loaders to motor graders, hydraulic excavators, dump trucks, cranes, crawler tractors and more. If it’s used to lift, transport or demolish, then it’s likely to be seen at a Ritchie Bros. auction. Wherever there is a need to sell, Ritchie Bros. Auctioneers offer inventory disposal solutions tailored to the specific needs of their customers.. At the same time, the auctions act as a powerful and efficient method for buyers to get the items that they need for a price that is right. There are presently more than 110 Ritchie Bros. offices around the world, including 40 auction sites. The auction site network stretches from North America through to Australia, encompassing Europe,
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the Middle East and Asia. At present there are more than 1,300 staff members around the world. In the Middle East, the auction site is based in Dubai and there is a team of representatives that help businesses in the region sell and buy equipment. “Since 1958, the company has gained a lot of knowledge and experience working with equipment owners to find solutions that meet their needs. There’s simply no other company in the world that sells more used and unused equipment than we do. Having a global network of auction sites and an international base of customers is a huge benefit for equipment owners who are challenged with selling one or more assets,” Karl Werner, managing director of Middle East and Africa for Ritchie Brothers Auctioneers. “We provide easy access to the demand in the global market and can turn an otherwise complicated selling process into a rewarding selling experience. At the same
time, our auctions offer equipment buyers an efficient and transparent platform to find and get the items they need. On our website www.rbauction.com , people can find up-to-date equipment listings, auction dates (including upcoming Dubai auctions), contact details and lots more information.” Last year, the number of bidder registrations for Ritchie Bros reached a record peak of 463,500. Another exciting development was that the number of online bids has seen a continuous increase over the last few years. In 2014, approximately $1.8 billion worth of equipment was sold to online bidders, an increase of 17% compared to 2013. “Live online bidding via our website was launched in 2002. It is a powerful addition to the auctions. Still, many people prefer to bid in person, at one of the Ritchie Bros auction sites. The key to conducting a successful auction is that people have
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great options to join in,” Werner added. For 2014, the Dubai operations saw four auctions held, with in excess of 5,500 lots sold. There were more than 3,000 registrants, with 620 plus sellers. Some of the most expensive items sold in 2014 included: A 2011 Komatsu PC1250SP-8 hydraulic excavator that sold for $375,000, another 2011 Komatsu PC1250SP-8 hydraulic excavator that sold for $350,000, a 2007 Caterpillar D10T dozer that sold for $340,000, two 2008 Caterpillar D10T dozers that sold for $327,500 each and four 2011 Komatsu HD785-5 rock trucks that sold for $315,000 each. “Our next auction in Dubai will be held on March 10 & 11, we’re now working with businesses to build up the inventory. The main highlights of the auction at the moment are six unused 2011 Caterpillar D9R dozers and three unused 2011 Atlas Copco ROCD7-11 crawler drills,” Werner said.
CONTACT Ritchie Bros. Auctioneers Gate 8 & Roundabout 9, Jebel Ali Free Zone, Dubai, United Arab Emirates Tel: +971 4 812 0600 Fax: +971 4 813 8495 Email: emea@rbauction.com www.rbauction.com
SHANTUI
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i u t n a Sh
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Best known for: Bulldozers – Shantui is one of the biggest producers of earthmoving equipment in the world
THE FULL PackagE Shantui is the world’s largest maker of dozers but also offers a highly diversified line of construction machinery and equipment.
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n 26 November, 2012. Shanghai, China, at the Bauma China 2012 exposition in Shanghai, Shantui Construction Machinery Co., Ltd. unveiled its biggest and most powerful bulldozer yet: The SD90-5 prototype. At 115t, 4.5m-tall, 5m-wide, and 12.3m-long it will be the second largest bulldozer in the world after the Komatsu D575A-3SD Super Dozer. Along with its enormous size it boasts an unstoppable 950 horsepower Cummins QST30 V-type, direct injection diesel engine, and features several patented technological innovations typifying Shantui’s in-house expertise.
In China, Shantui’s name has long been synonymous with the word ‘bulldozer’. Today, Shantui is not only the world’s largest maker and seller of brand name dozers, but also offers a highly diversified line of construction, road, public utility vehicles and cement handling machinery, making everything from wheel loaders and road rollers to truck cranes and motor graders, to forklifts and excavators. Shantui is a distinguished Top China Brand and a leading Chinese multinational corporation with sales in more than 120 countries and regions worldwide. In 2012, the company reached the US$2.5 billion milestone in revenue.
The company is publicly listed on the Shanghai-Shenzhen 300 Index, and is headquartered in Jining, Shandong Province. Shantui prides itself as China’s Value Leader in the construction machinery industry, offering a unique balance of high performance and great value. Already one of the world’s best known and largest producers of bulldozers, Shantui seeks to answer the increasing demand for bulldozers that possess power greater than 420hp. Currently undergoing certification, the SD90-5 prototype will operate in the harshest environments with great efficiency. With the world’s environmental regulations
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DESERT STORMERS Shantui’s deal with genavco gives it a wide range earthmoving equipment to offer to the market.
and engineering practices constantly changing, the SD90-5 adapts well to different methods of mining and earthmoving. Featuring a rearmounted hydraulic ripper arm, the SD90-5 is well-suited for agitation-method mining, while the 45-cubic-metre blade is excellent for clearing any stone debris. Furthermore, its K-type floating rollers and auto-locking torque converter give it the means to efficiently handle any water conservancy, earth moving, or demolition tasks. Complementing its robust power, the SD905 comes standard with many new features and designs developed by Shantui’s own engineers to optimise the operator and ownership
experience. The SD90-5 is built with a modular design, so that components can be easily maintained or replaced. For example, the new integrated gearbox utilizes the coolant and oil-injection lubrication systems of the rest of the machine, easily connected and disconnected from the rest of the working units. This reduces the overall size of the gearbox, facilitating removal and maintenance. In the area of operator use the SD90-5 features an on-board integrated computer and proportional pilot control. The computer is integrated with the rest of the machine, allowing real-time monitoring of vital systems, remote diagnosis of faults,
and GPS tracking. The pilot control is also connected to the gearbox, providing more gear options and smoother shifting. To aid in operator comfort new floor structures reduce cab vibration, and a roll-proof cab structure increases user safety. “With the SD90-5, we hope to establish ourselves as the number one name in bulldozers, not just in China, but the world as well” stated Chad Cheng, General Manager of Shantui Import & Export Co., Ltd. “This product sets the bar for Shantui as far as engineering goes, and hopefully it will advance the industry as a whole, especially in developing markets.”
CONTACT Shantui Import & Export Company Shantui International Business Park, No.58, G327 Highway Jining City, Shandong Province Tel: 186 537 2909367 Fax: 186 537 2311219 Email: trade@shantui.com www.shantui.com
TEREX
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Terex
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Best known for: Terex construction equipment and cranes Genie Powerscreen Demag
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erex Corporation is focused on its mission of providing solutions to our Machinery and Industrial Product customers that yield superior productivity and return on investment. Terex has continued its evolution in recent years, primarily through a series of acquisitions and divestitures, designed to enhance the product offering, improve geographic coverage and deliver value to Terex customers, shareholders and team members. The history of Terex is not a simple one. This is the history that led to the name “Terex” and the evolution that followed. However, there is an equally rich history to many of the “historic” names that Terex acquired in recent years. This document is intended to cover the highlights. In 1933, what was to eventually become Terex Corporation began its existence as the
“Euclid Company,” founded by the Armington brothers. Its success designing and building haul trucks later attracted the attention of General Motors, which purchased Euclid in 1953. GM’s “Euclid Division” developed and sold large equipment including over half the nation’s off-highway dump trucks. The dominant performance of Euclid had a negative consequence, however, when the US Department of Justice brought an antitrust suit against GM, forcing it to stop manufacturing and selling off-highway trucks in the US for four years, and to divest parts of its Euclid business and the Euclid brand name. GM coined the “Terex” name in 1970 from the Latin words “terra” (earth) and “rex” (king) for its construction equipment products and trucks not covered by the ruling. The remaining parts of the new Terex business produced crawlers, front-end loaders, and scrapers.
The recession of the early 1980s took its toll on Terex, and General Motors sold Terex to IBH Holdings, a company owned by German businessman, Dieter Esch, in 1981. When Northwest Engineering bought Terex USA in 1986, the agreement included an option to purchase Terex Equipment Limited. Northwest Engineering exercised that option in 1987. During that same year, Lenz expanded the company’s manufacturing footprint into Scotland. The next year, the name of the company was changed to Terex Corporation. During the remainder of the decade, Terex made a number of acquisitions, including Koehring cranes and excavators (1987), Unit Rig (1988), and Fruehauf Trailer (1989). The Fruehauf acquisition alone resulted in Terex nearly tripling in size. In the early 1990s, Terex took a series of steps to improve its financial
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picture, including spinning off Fruehauf as a separate public company. Woody Baldus, CEO, passed away in the fall of 1991. Randolph Lenz assumed the title of Chairman and CEO. This led to the recruitment of Ron DeFeo in May 1992. Ron DeFeo joined Terex as President of the Company’s then - Heavy Equipment Group in Tulsa, Oklahoma. In 1993, Terex corporate offices were relocated to Westport Connecticut. Then, in October 1993, Ron DeFeo was appointed President and COO of Terex and a member of the Terex Board of Directors. Facing a recessionary environment, DeFeo began an aggressive operational and financial restructuring of Terex that included raising additional capital, selling assets, and restructuring operations. Among the actions taken by Terex was a focused effort on turning around Clark Material Handling and the sale of its Fruehauf stock in the private market for $28 million. Over the remainder of the decade, Terex made important acquisitions including Powerscreen which was acquired in 1999. In 1999, Terex became a leader in the crushing and screening industry with the acquisitions of Cedarapids, Re-Tech, Powerscreen and Finlay. In 2000, Terex moved into the Compact Equipment category with the acquisition of Fermec, a UK manufacturer of tractor loader backhoes. In 2001, Terex established the Roadbuilding business with the acquisitions of Jaques (crushing and screening), CMI (road building) and Bid-Well. The Atlas acquisition is also completed this year. In 2005, Terex established a new corporate operations group, with the goal of developing and implementing world-class capability in supply chain management, logistics and
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LOCAL FOCUS Terex’s range of cranes are a popular choice for rental operators in the region.
global purchasing. Historically, Terex supply chain decisions have been made site by site, which provided limited opportunity to leverage Terex’s size. However the company has gained ground focusing on efficiencies with suppliers based on the company’s global purchasing power and resources in a way that transcends individual business units. While local responsibility will be retained, there will be a comprehensive effort to reduce cost, improve quality, simplify operating systems and optimise new product development to market time. Terex is dedicated to leveraging its size and consolidating vendors in an effort to remove waste throughout the organisation. Terex has focused on growing and
improving the operations of its core business segments. The Company has expanded the size and scope of its core businesses both through acquisitions and through development of new products to increase its market share. In addition, Terex is focused on expanding the geographic reach of its products, emphasising developing areas such as China and India. Management believes that these initiatives continue to help to reduce the effect of potential cyclical changes in any one product category or geographic market. These initiatives have also expanded the Company’s product lines and geographic reach, added new technology and improved Terex’s distribution network.
CONTACT The Pinnacle Building, Sheikh Zayed Road Office 304 & 305 PO Box 282325 Dubai, Al Barsha 1 United Arab Emirates Tel: +971 4 399 0381 Fax: +971 4 399 0382 www.terex.com
VOLVO TRUCKS
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s k c u r T o v l Vo
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new range The Swedish manufacturer launched three new, top-
Best known for: trucks and construction machinery
of-the-range models at Yas
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ith a customer base spread across more than 140 countries, 2,300 dealerships and workshops, Volvo Trucks easily live up to the claim that it is the world’s second-largest heavy-duty truck brand. As its retail strategy is based on customer orientation, it’s easy to see where the focus lies, given that 95% of the trucks it builds are in the heavy weight class of more than 16 tonnes. The trucks continue to be the core products in the company’s total offer, which also includes aftermarket service and extended offers. The manufacturer has a production structure based on having a global presence. The company has eight whollyowned assembly plants and nine factories owned by local interests. About 95% of the company’s production capacity is located in Sweden, Belgium, Brazil and the USA, with 17,000 dedicated employees worldwide.
Island, Abu Dhabi in 2014.
In the Middle East alone, the company operates in 13 countries with an extensive importers’ network, 33 service centres and three mobile workshops to cover the demands of the massive Volvo Trucks population in the region. Binding these disparate chains together is Volvo Truck’s core values of Quality, Safety and Care for the Environment, says Lars-Erik Forsbergh, president of Volvo Trucks for the Middle East. “KSA, Iraq, the UAE and Oman are mainly our markets for long haul and construction. UAE and Iraq saw the highest growth for Volvo Trucks in 2014 (vs 2013), with market growth of 49% and 67% respectively,” he points out. At the end of 2014, the Middle Eastern arm of the business reported a 24% increase in deliveries and a 27% increase in part sales year on year for 2014 across its 13 active Middle East markets. These figures come at a time when the regional construction
industry is set for rapid growth due to heavy government investment, infrastructure development and diversified market drivers. These include a rapidly growing population, an increase in tourism numbers and the ongoing preparations for the 2022 FIFA World Cup in Qatar and the Dubai Expo 2020. In response to this growing demand, the Swedish truck manufacturer launched three new, top-of-the range models in 2014, in a ceremony heralded as its biggest ever truck launch in the Middle East. This is part of a continuous evolution by the division to keep up with demand in the region, as Forsbergh explains. “In 2006, Volvo Group Middle East commenced operations in new independent facilities on an area of 47,500sqm in Jebel Al Free Zone. The facilities include the Regional Parts Distribution Centre, the Regional Competence Development Centre and the
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aiming for the top Forsbergh says that he
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wants Volvo Trucks to be number in sustainable transport solutions by 2020.
representative offices of Volvo Trucks, Volvo Construction Equipment and Volvo Buses. “Volvo Trucks employs more than 70 employees, who strive to deliver the best in-class customer service to its customers in the region. Since 2013, the workforce has grown by more than 25% to meet the growing market demand and truck population in the region,” he says. If 2014 was a year of considerable successes, there were a few notable deals conducted by Volvo Trucks. The team organised the delivery of 250 FH 4x2 tractor heads, all equipped with I-Shift gearboxes, to a major construction firm in Dammam, KSA, and a delivery of 100 FH 6x4 tractor heads, also all equipped with I-Shift, to a construction company in Dubai, UAE. In Muscat, Oman, an order of 80 trucks were delivered, including a mix of FH 6x4 tractors and 8x4 concrete mixers, to another
construction firm operating in the Sultanate. In Iraq, the Volvo Trucks team delivered 282 FMX units to Baghdad Municipality. These included a mix of FMX 6x4 and 4x2 rigid trucks equipped with different types of superstructure, including vacuum tankers, garbage compactors and tipper bodies. A further 100 units of FH 6x4 tractor heads, with flatbed general cargo semitrailers, were delivered to the Ministry of Transport in the Iraqi capital. “We offer a wide range of service contracts ( blue, silver, and gold) that differs from country to country whenever applicable, they are totally adapted to market demands, applications, and special customer’s needs in the Middle East region,” says Forsbergh. “Our regional customers benefit from service agreements which give them peace of mind and allows them to have a clear and transparent visibility on the total cost of ownership when it comes to service
and parts, while running their day-to-day businesses, they want to avoid any unplanned stops, retain a high resale value, and be able to rely on quick and efficient service.” Despite these considerable successes in 2014, there is no intention of Volvo Trucks resting on its laurels, Forsbergh says. With more than $3 billion and 14 million engineering hours invested into research and development worldwide, along with 21 million kilometres in testing, the aim of the company is to continue moving forwards, he says. “By 2020, we want to be number one in sustainable transport solutions. We’ve already launched a full new range and product technologies, as well as new workshop openings and a CKD facility in Iraq. We’re planning on having new workshops in Oman, Iraq, Qatar, KSA and Egypt. We’re also planning to extend the KSA factory in the coming year,” Forsbergh adds.
CONTACT Volvo Group Middle East S-10122 Jafza South PO Box 261857 Dubai, UAE Tel: +971 4 803 8555/803 8444 Fax: +971 4 886 0588 www.volvotrucks.com
ZAFCO
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O C F A Z
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diversified revenue 20% of ZAFCO’s revenue comes from the local market, with the balance coming from around the globe.
S ZAFCO supplies the GCC region with Doublecoin, the leading Chinese tyre brand
et up in 1993 in the UAE, ZAFCO has grown rapidly over the last two decades to become one of the leading distributors of automotive tires, batteries and lubricates in the region, housing a diverse portfolio of top-level brands including China Manufacturing Alliance’s Doublecoin brand. With customers spread across six continents, ZAFCO has a well-diversified revenue mix. In 2015, 20% of revenue comes from the local market, with the balance coming from around the globe. The entire Middle East and Africa region accounts for 50% of revenue, while 15% comes from the USA and Europe respectively. The 20% balance comes from the rest of the world. At present, ZAFCO employs more than 325 professionals, with 25 different nationalities, says Rishi Vig, chief financial officer of the company. He adds that this number will increase gradually over time, as the scale of operations widens. “The workforce is considered to be our greatest asset. We strive to ensure that we attract and retain the best talent in the industry,” he adds. ZAFCO’s wide range of product offerings includes tires for everything from passenger cars to trucks, buses and industrial vehicles. In the last 12 months, the company has acquired the distribution rights for Metzeler – a motorcycle tire brand – in the UAE region.
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Long term goaLs Rishi Vig says that ZAFCO is focusing on becoming an ‘end-to-end’ company for tires and related services.
“ZAFCO is working in a focused manner towards its long-term strategic goals and vision of becoming an endto-end company for tires and related services. In this direction, it has taken a strategic stake in a couple of manufacturing companies in South-East Asia to build its propriety brand, ZEETEX,” says Vig. He adds that the company plans to go ahead with new product offerings and other ‘exciting projects’ that are in the pipeline for 2015, which will enable ZAFCO to get close to its 2020 vision. “ZAFCO intends to expand its Thailand manufacturing facility to make passenger car tires. The project will reach initial commercial production in 2016,” he says. “We will continue to expand our global footprint.” “We are constantly working on bringing improved products with less carbon imprints and making road journey safe. In this direction we have launched a range of ‘green tires’ by ZEETEX. “Apart from scaling the business, we continue to care about the environment and the community as a whole by indulging in CSR activities frequently.” “Being in the business over for the last two decades, the group has developed certain process and by continuing to work closely with our customers, it helps to identify opportunities,” Vig adds.
CONTACT ZAFCO FZCO Jebel Ali Free Zone (South) POBox 262176 Dubai, UAE Tel: +971 4 886 2700 Fax: +971 4 886 2701 Email: info@zafco.com www.zafco.com
64 ACKNOWLEDGMENTS
GROUP CHAIRMAN AND FOUNDER Dominic De Sousa GROUP CEO Nadeem Hood GROUP COO Gina O’Hara
PUBLISHING DIRECTOR Raz Islam raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR Vijaya Cherian vijaya.cherian@cpimediagroup.com +971 4 375 5472 EDITOR Stian Overdahl stian.overdahl@cpimediagroup.com CONTRIBUTING EDITOR Gavin Davids gavin.davids@cpimediagroup.com +971 4 375 5480 COMMERCIAL DIRECTOR Michael Stansfield michael.stansfield@cpimediagroup.com +971 4 375 5497 MARKETING MANAGER Lisa Justice lisa.justice@cpimediagroup.com +971 4 375 5498 ART DIRECTOR Simon Cobon simon.cobon@cpimediagroup.com +971 4 433 2849
EDITED by STIAN OVERDAHL EDITORIAL SuppORT by gAVIN DAVIDS
PRODUCTION MANAGER Vipin V. Vijay vipin.vijay@cpimediagroup.com +971 4 375 5713 DATABASE AND CIRCULATION MANAGER Sunil Kumar sunil.kumar@cpimediagroup.com +971 4 375 5476 PUBLISHED BY
DESIgN AND LAyOuT by SIMON CObON Corporate Publishing International Registered at IMPZ POBox 13700, Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com PRINTED BY Printwell Printing Press LLC A supplement of Construction Machinery Middle East
2015 edition