Construction Machinery ME January February 2024

ISSUE 142 2024 FEBRUARY JANUARY-

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CONTENTS

JANUARYFEBRUARY 2024 06_NEWS The major news stories and company moves from the month.

12_ELECTRIFYING THE MARKET FAMCO’s Ramez Hamdan talks to CMME about taking a leading in electrifying the construction sector.

16_A TRIP THROUGH TIME

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CMME sits down with Al Shirawi Machinery and HD Hyundai CE at their UAE launch event.

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EDITORIAL JANUARY-FEBRUARY 2024

GROUP MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5713 DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 PUBLISHING DIRECTOR ANDY PITOIS andy.pitois@cpitrademedia.com +971 4 375 5473

LOOKING FORWARD TO HEADING BACK TO THE KINGDOM

EDITORIAL EDITOR STEPHEN WHITE stephen.white@cpitrademedia.com +44 7541 244 377 ADVERTISING SALES MANAGER BRIAN FERNANDES

Like a call from a bored housewife or stay at home dad who finally got around to moving the sofa and adding a splash of paint, the message on the other side of the phone or table this month has been: “You’re not going to recognise the place, Stephen.”

And that pretty much sums up every response to when I’ve mentioned that I’m going to Saudi Arabia for the first time in nearly 10 years. Jeddah in fact. Long time readers may even recall my scribbles from one of my final visits to the Kingdom. A mad-cap dash from Jeddah into the desert to track down the then CEO of Volvo.

And that pretty much sums up every response to when I’ve mentioned that I’m going to Saudi Arabia for the first time in nearly 10 years. Jeddah in fact. Long time readers may even recall my scribbles from one of my final visits to the Kingdom – a mad-cap dash from Jeddah into the desert to track down the then CEO of Volvo.

How I made it back with less than two hours to my flight, a run through the airport included, I will never know.

Among the list of things on my ever growing 2024 wishlist has been to spend more time in Saudi Arabia and I’m pleased to be heading to a flight (with time to spare, I should add), a few hours after writing this down.

If you don’t know by now (if not, where have you been?) the Kingdom of Saudi Arabia is experiencing what is being described as a transformative phase in its construction sector, heralding a new era characterised by technological innovation,

sustainability, and strategic development.

This shift is not only reshaping the landscape of the Saudi construction industry but also positioning the Kingdom as a global frontrunner in the adoption of cutting-edge construction methodologies and sustainable practices. You have to have been under a rock to not know construction in Saudi Arabia is changing, driven by Vision 2030, technological advancements, and a heightened focus on sustainability.

And up until now, I’ve missed most of it. Typical.

I’ve never known what to expect when I’ve gone to Saudi, except the unexpected.

There were missed flights, one footed taxi drivers, and on one occasion I genuinely thought I had penned my last editor’s note after our driver attempted to take on a full fat truck on the highway near Dammam.

Back then that was the charm of the place. I’m going to be interested to see how much of that is left. I know people are still worried about the time it takes to make decisions. Some complain about getting paid - still. However if there is one place to be in 2024 it is the Kingdom of Saudi Arabia, and I can’t wait to get back.

brian.fernandes@cpitrademedia.com +971 4 375 5479 DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpitrademedia.com DESIGNER PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com MARKETING EVENTS EXECUTIVE MINARA SALAKHI minara.s@cpitrademedia.com +971 4 433 2856 EVENTS EXECUTIVE PRIYANKA RAINA priyanka.raina@cpitrademedia.com CIRCULATION & PRODUCTION DATA & PRODUCTION MANAGER PHINSON MATHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WEB DEVELOPMENT ABDUL BAEIS UMAIR KHAN FOUNDER DOMINIC DE SOUSA (1959-2015) PUBLISHED BY

The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing.

Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Masar Printing.

Stephen White Head of Content, CMME stephen.white@cpitrademedia.com

CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2024. All rights reserved.

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ONLINE JANUARY-FEBRUARY 2024

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US $90mn contract awarded for improvement of Umm Suqeim Street Project The project follows on from works completed by the RTA in 2013 and 2020

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KAPP calls for bids for renewable energy project Once complete, the solar PV project will boast a net capacity of 1,100MW CONSTRUCTION

Consortium of Saudi Archirodon and DEME wins NEOM port contract

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US $336mn expansion of Sharjah International Airport gets underway The expansion will separate the arrivals from the departures and offer new systems and facilities CONSTRUCTION

Residential project announced for King Salman Energy Park

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Alstom to build world’s longest battery-operated tramway in AlUla 17-station network to be built by Alstom and connect region’s cultural hubs

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ADNH and Marriott join forces for major hotel rebranding

Saudi Arabia to invest US $92bn into transforming Riyadh ahead of Expo 2030 Princess Haifa said plans are afoot to transform Riyadh into one of the most sustainable cities by 2030

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Oman Cultural Complex to be developed at cost of US $383mn

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END-USERS

AMANTRA FM ACQUIRES AL MANQAB TECHNICAL SERVICES

JECTS, O R P W E N OFFICES, W E N , S E HIN AROUND K O NEW MAC O L E IVES – W T A MONTH I T S I I N H I T W E NE W WHAT’S N T A N O I G THE RE FRONT END ANNOUNCES PARTNERSHIP WITH CRANE+ At the Future Minerals Forum in Riyadh, Front End, a Saudiowned enterprise specializing in advanced solutions for various sectors, announced an exclusive partnership agreement with Crane+.

Al Shirawi and HD Hyundai in key deal Al Shirawi Machinery, a leading provider of construction equipment in the UAE, and HD Hyundai Construction Equipment, a global construction equipment manufacturer, have announced a landmark partnership in the UAE. At an official signing held in Dubai, both companies told an audience of contractors and local construction players that the alliance had been five years in the making and is set to revolution-ise the construction industry in the UAE with cutting-edge technology and a shared commitment to innovation and customer support.

CEO Thani Al Shirawi said the collaboration with Hyundai Construction Equipment would be “a revolutionary partnership in a new transformative era for construction in the UAE market.”

Hyundai CE is one of the world’s leading names in equipment. Now backed by Al Shirawi’s aftersales and

support in the UAE, it is determined to see its performance match its reputation.

Jason Byun SVP Head of Overseas Sales Hyundai Construction Equipment added that: “Hyundai is making remarkable return to the UAE. We will work closely to revive bonds with our customers.

Also speaking was H.E. Jehseung Yoo, Ambassador of the Republic of Korea to the UAE who highlighted South Korea’s contribution to the construction industry in the UAE, including the Burj Khalifa, described attending the signing ceremony as a great honour: “I congratulate them on embarking on their ambitious journey - where both groups make a commitment for a sustainable partnership,” he added.

“We are truly honored to have His Excellency Jehseung Yoo, Ambassador of the Republic of Korea to the UAE, Deputy Consul General Young-Joon CHOI, and distinguished guests from HD Hyundai with us.

The agreement positions Front End as the primary collaborator for Crane+’s state-ofthe-art products and services within Saudi Arabia.

The partnership focuses on transforming industrial, mining, and oil & gas operations by integrating autonomous high payload, longrange drones and trucks. This move aligns with Front End’s commitment to fostering an ecosystem of partners.

FM firm Amantra FM has acquired specialist fire-fighting and safety solution provider, AL MANQAB Technical Services. The acquisition is said to mark Amantra’s foray into the construction industry, where the integration of firestop solutions in design stages helps significantly avert fire hazards in the future. The solutions, coupled with installation from trained technicians, constitute AL MANQAB’s and Amantra’s competitive edge in construction.

Founded in 2018, AL MANQAB has built a strong portfolio of firestop solutions and ancillary offerings such as safety programs, fire safety audits, hazard identification, and risk assessment. The firm’s expertise encompasses MEP penetrations, electrical risers, shaft openings, floor/wall openings and joints, where sophisticated firestop solutions can play an integral role in averting and mitigating firerelated incidents in the future.

“AL MANQAB’s tested-and-proven competencies in firestop solutions will synergise perfectly with Amantra’s existing MEP capabilities to offer enhanced value to our customers. The construction industry can be the custodian of fire safety in future buildings by incorporating sophisticated solutions in the design stages. The resulting preventive rather than reactive approach to fire safety has profound implications for liveability in the urban context.

Amantra FM is proud to champion this righteous cause in GCC,” stated Sangeetha B, CEO of Amantra FM. ABM (Al Basti and Muktha), ASGC, and Innovo are among the leading clients who will benefit immensely from that synergy following the acquisition.

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NEWS ROUND-UP JANUARY-FEBRUARY 2024

CRANES

Hitachi to begin accepting orders for ZAXIS-7G series

Hitachi Construction Machinery Co., Ltd. is set to launch its new ZAXIS-7G series hydraulic ex-cavators in Southeast Asia.

The company has announced that it will start accepting orders for four models in this series - the ZX350-7G, ZX490-7G, ZX690-7G, and ZX890-7G - beginning late February 2024, initially in Thailand, followed by other Southeast Asian countries including Indonesia, Malaysia, Singapore,

the Philippines, Vietnam, Cambodia, and Myanmar.

The ZAXIS-7G series, which has already gained popularity in the European, Japanese, and North American markets, is now being introduced to meet the increasing demand for high-quality construction equipment in Southeast Asia.

These new models are expected to be in high demand for various applications such as urban civil

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engineering, large-scale public works, quarrying, and mining.

The ZAXIS-7G series boasts improvements in hydraulic efficiency, notably in the ZX3507G, and features the latest HIOS-V hydraulic system in the ZX490-7G, ZX690-7G, and ZX8907G models. These advancements contribute to significant fuel consumption reduction, allowing for more fuel-efficient operations and lower life cycle costs. The series also includes an ECO gauge on the cab monitor to aid in optimizing fuel usage.

Hitachi Construction Machinery is committed to addressing customer needs by enhancing safety, boosting productivity, and reducing life cycle costs with its innovative ZAXIS-7G series.

The launch of these excavators in Southeast Asia marks a significant step forward in the region’s construction industry, promising to deliver stateof-the-art technology and unparalleled performance.

ASSISTEDILE INSTALLS FIRST RAIMONDI T147 FLAT-TOP TOWER CRANE

Official Raimondi Cranes agent of Milan, Monza, and Brianza, Italy’s Assistedile Srl., says it has brought its total fleet size to 130 cranes with its newest Raimondi T147 flat-top tower crane.

Raimondi is owned by Dubai-based KBW Investments. A Class 110 series crane, the T147 is the 107th Raimondi in the company’s fleet, erected for the first time in the country in October 2023. Currently at work in Modena, Italy, on the construction of the new technical and administrative offices of the country’s most renowned automobile manufacturers, Ferrari.

“The deployment of the first Raimondi T147 on this prestigious jobsite represents a milestone for our company. We have of pleasure working on the expansion of Ferrari’s headquarters by renting this model to Ediltecno Restauri, contractor of the project,” stated Luciano Friso, Director General, Assistedile.

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Acciona reduces crane environmental footprints at healthcare project ACCIONA has used a new, much more efficient energy storage system in the construction of the Alentejo Hospital in the Évora region of Portugal.

This Atlas Copco ZBP4545 energy storage system connected to a 100 kVA generator - has been installed to power a crane tower being used in the construction of the hospital.

This system - in addition to diesel generators - makes it possible to reduce the environmental footprint associated with the crane’s energy consumption, in this case, achieving a significant reduction in fossil fuel (diesel) consumption and associated polluting gas emissions.

The system installed by ACCIONA consists mainly of long-life, low-maintenance lithium-ion

batteries that can be charged from different energy sources (grid, renewable sources, generators).

Thanks to this innovative system, at the beginning of the working day, the energy storage

provides all the electricity to power the crane’s motors, and during the day, they alternate with the electric generator for the necessary recharging time.

The diesel genset now runs less

than 10 hours per week, compared to more than 50 hours per week prior to the installation of this pilot system. ACCIONA has been able to increase the site’s energy efficiency and reduce its environmental impact by reducing daily fuel consumption, CO2 emissions and noise. This pilot study is part of ACCIONA’s Decarbonization Plan, promoted by the company’s Sustainability Department, which encourages the introduction of measures that effectively enable the progressive decarbonization of its projects at an international level.

Based on the results obtained during the three months that this new system has been in operation, it estimates a saving of 5,000 liters of fuel per year to power the tower crane.

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KIT SPOTTING JANUARY-FEBRUARY 2024

LR273 LUFFING JIB CLIMBS TORONTO

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anadian builder Avenue Building Corporation has deployed one Raimondi LR273 luffing crane for a downtown Toronto jobsite. The project, a new residential high rise, is located in the city’s sophisticated Bloor Yorkville area.

“The Raimondi LR273 is one of the best-selling models for this type of development in Canada, especially in major metropolises like Toronto. High-rise buildings are in increasing demand and swing rights are an issue; making this crane an apt onsite asset,” highlighted Jim Patullo, President, Avenue Building Corporation.

“The features of this versatile machine, including the out of service radius and the ease of its internal climbing, allow us to install the luffer on several ‘zero lot line’ projects,” Patullo added. He noted that the same luffing model was employed for the construction of the first Nobu Residences and Hotel in downtown Toronto, which had similar construction requirements.

Located in a congested area, 55 Charles Condo is surrounded by several other high-rise developments. Installed in February 2021, the 18tn maximum lifting capacity crane is at work with a 40 meter jib, clocking in at 15m out of service radius with a tip load of 8.20t in UltraLift. Erected on a 6 GR6L tower sections on a concrete pad in the below ground parking at level

4, the 36m tower height has been climbed off internally for the past two years until reaching the final height of 167m above the ground level. Sitting now on the roof, the LR273 is approaching the final stages of the project, with the expected dismantling date scheduled for December 2023.

“Another asset of this luffer is the ability to promptly switch from two falls to four falls and reverse, allowing to lift large generators, air handling units, BMUs, and more without any downtime. This ensures that the developer gets its necessary equipment in place cost-effectively and quickly. Further, equipped with an 86kW hoisting gear, the LR273 can lift at a maximum speed of 204 meters per minute and have a drum capacity of 980m, boasting excellent lifting performances and meeting site deadlines,” he explained, noting that the weight-optimized luffer is also very easy to assemble and boasts excellent load curve.

“Our fleet currently counts seven Raimondi cranes, all deployed across different sites in Toronto, and we are pleased to anticipate that two additional LR273 luffing jib cranes will shortly go up in another key development of the city,” concluded Patullo. Upon completion, 55 Charles Residences, a project of MOD Developments, will add 665 residential units to the neighbourhood, contributing to the dynamic and ever-evolving landscape of central Toronto.

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FEATURE JANUARY-FEBRUARY 2024

Ramez Hamdan says that FAMCO is determined provide a full range of products and services to its customers across the region.

“FAMCO is in a transitional phase, and we have a solid strategy where we’re transforming into a onestop-shop solution provider for B2B customers”

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ELECTRIFYING THE MARKET

RAMEZ HAMDAN, THE MANAGING DIRECTOR OF AL-FUTTAIM AUTOMOTIVE INDUSTRIAL EQUIPMENT (FAMCO & COMMERCIAL VEHICLES) TALKS TO CMME ABOUT THE FIRM’S REMARKABLE REGIONAL RISE

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ou have to challenge yourself to provide the ultimate solutions for the customer,” Ramez Hamdan, Managing Director, Al-Futtaim Industrial Equipment (FAMCO & Commercil Vehicles) tells CMME early into a visit at the regional powerhouse’s headquarters in Dubai. Hamdan is noticeably patient as the photographer asks him to shift position again, happy to explain how one of the most famous names in equipment and vehicles in the UAE is fixed on growth even as he is asked to once again to fix a gaze into the lens.

“FAMCO is in a transitional phase, and we have a solid strategy where we’re transforming into a onestop-shop solution provider for B2B customers,” he leans into the phrase one-stop-shop throughout our interview come photo-shoot, but whether it’s the introduction of Volvo’s range of electric heavy equipment and vehicles last year, an ever-growing business, or its re-energised regional expansion, it’s clear that the words match the ambition.

“We provide total solutions for the customers, wide range of products, service, parts across the region.

About 60% of our customers are looking for that one-stop-shop experience across the 20 brands we represent. This strategy has pushed us to consider the entire service spectrum for our customers.”

FAMCO shifted gears during the COVID crisis, resisting the urge to consolidate like other distributors and importers in its home country, and has noticeably hit its stride since the turn of the decade. It is now a fully-fledged regional player that is daring to introduce new types of machinery and equipment such as the ECR25 Electric excavator and

wheel loader L120 electric which have been hailed as a potential game-changers, as well as the awardwinning FM Electric Truck from Volvo Construction Equipment’s sister company Volvo Trucks.

But the Volvo lines are only one part of the story when it comes to its portfolio. Within its ranks, FAMCO can now claim to have the range of equipment suitable to be used by contactors in the construction, logistics and oil and gas industries, quarry and mining. Like Volvo Construction Equipment’s range, brands such as Yanmar, Bobcat, Himoinsa and Linde are considered among the best in their fields too. Ramez says the company will continue to explore new products that enhance its ability to fulfil the needs of its clients.

“If we look at the whole picture for B2B customers, a contractor can need a truck with an excavator or wheel loader,” he notes. “They’ll need a generator or a bus to transport labourers. You might need compressors, light duty trucks, sometimes a forklift.

The dream is really to get a customer to buy into all these different brands. We’re also helping them to finance through bank or leasing as well. We’re trying to offer the customers many suitable options that can fit their unique terms and conditions.”

Like the other members of the Al-Futtaim family of companies, FAMCO is being encouraged and supported to invest in other markets. With operations in the UAE, KSA, Qatar, and Bahrain, and plans to enter three more countries, FAMCO is strategically positioning itself to be closer to its customers, says Hamdan.

“We are taking the best practices from the UAE and applying them across our operations. We often promote internal talents to lead these new markets, combined with hiring local experts. This approach ensures we maintain our high standards and adapt

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FEATURE JANUARY-FEBRUARY 2024

to each market’s unique challenges.”

Hamdan emphases the importance of adapting to each market’s unique challenges while maintaining high standards: “Each market, like Saudi Arabia, has its own nuances, especially regarding ease of doing business and credit practices. However, with solid operational policies and strategies, we maintain control over our business.”

The challenge, he adds, is to find the right balance between local insider nous and product experience – all its employees, wherever they are, must follow the company’s high standards of service delivery to customers.

“FAMCO is 60 years old and it’s not easy to replicate our success and experience,” he says. “We have a very solid foundation.

Wherever we go, we will always bring the best practices we’ve learned in the UAE and try to maximise our current resources. We want to give opportunities for our current employees and don’t have to go and hire people from the market. We like to empower and to grow the current talent that we have.

So, we promote internal talent and combine this with local expertise, ensuring we uphold our quality and adaptability,” he explains.

“This expansion aligns with our strategy to be closer to our customers, many of whom operate regionally and demand our presence in different markets.”

Operating in different countries brings other sets of challenges, particularly in terms of business practices and credit policies.

FAMCO may be a six-decade success story, but it is reaching forwards, and daring to launch electric equipment into the market.

Hamdan notes that solid operational policies and strategies are crucial in maintaining control and adapting to these differences. FAMCO’s regional expansion can simplify interactions for brand partners, offering a unified approach across multiple markets, he says.

“Dealing with one dealer for consistency in pricing, stock management, and strategy is a significant advantage for our partners,”

adds Hamdan. “And it’s an ambitious strategy as we need to be an active agent as well. Many of our customers are now multinationals that are operating regionally in areas such as waste management and FMCG and they’re asking us, demanding us, to be there. They are thinking, ‘okay, we’ve looked at what’s available in Saudi Arabia, but actually we know what we’re going to get through FAMCO’.”

Like other members of the Al-Futtaim group of companies, sustainability is a key aspect of FAMCO’s operations that must be reflected in its approach to market. The company is heavily invested in initiatives like finding greener ways to power its growth but is at the same time taking a lead in providing decarbonising products in areas such as construction and mobility.

“Our focus goes beyond profitability to corporate social responsibility, aligning with the vision for zero carbon emissions,” Hamdan states. “Sustainability really is a key aspect of our business. We are actively involved in initiatives like installing solar panels and supporting electric mobility. Our commitment aligns with the vision to achieve zero carbon emissions, and it goes beyond profitability to corporate social responsibility.”

The launch of Volvo CE’s pioneering electric construction machines to the UAE marks a major step towards decarbonising construction sites in the region.

FAMCO believes the launch of these electric machines, including the ECR25 Electric

15 compact excavator, the 23-ton EC230 Electric excavator, and the 18-ton L120 Electric wheel loader, demonstrates both partners’ commitment to sustainable construction practices. These machines offer the higher performance as their diesel counterparts but with additional benefits such as zero emission, reduced vibrations, and a more comfortable working environment. They are not only environmentally friendly but also comply with stringent emission regulations, opening up new business opportunities. The first introduction of electric construction equipment in the region comes with unique challenges, particularly in ensuring the equipment meets specific regional needs.

“We conduct extensive testing and train our technicians to maintain this technology efficiently,” Hamdan emphasises.

To those sceptical about electric equipment, Hamdan advises trying the machines instead of disregarding the technology outright. He believes they will prove their financial advantages and sustainability benefits in the long-term.

“We’re committed to providing the best solutions and support for our customers in this transition,” he remarks. “I would encourage them to experience electric equipment first-hand. It’s not only beneficial for sustainability but also offers long-term financial advantages. We’re committed to providing the best solutions and support for our customers in this transition.”

“Our focus is on providing reliable and

efficient solutions for our customers.

Introducing electric construction equipment has its challenges, especially ensuring it meets the region’s specific needs. We are conducting extensive testing and we are ensuring that our technicians are welltrained to maintain this technology.

“We want to tell people that here are alternative ways to do the right thing and even a better way to do it, while protecting the future for our kids and the future generations. We want to show them that the technology exists, and we have it. We just need everyone to put their heads together to reach this goal.”

As FAMCO continues to evolve and expand, its focus on innovation, sustainability, and customer-centric solutions positions it as a leader in the construction equipment industry in the Middle East. Hamdan highlights the significance of refreshing their three-year plans annually to stay aligned with market conditions.

“Continuous internal reviews and expert consultations help us identify and fill gaps in our offerings,” he adds.

The past three years have seen the growing importance of the Saudi Arabian market to the construction industry. With mega projects such as NEOM and The Line capturing the world’s attention, flights are now full of contractors and construction professionals following the work and the promise of new opportunities. According to Ramez, FAMCO was an early mover into

“Sustainability really is a key aspect of our business. Our commitment aligns with the vision to achieve zero carbon emissions, and it goes beyond profitability to corporate social responsibility”

Ramez Hamdan advises equipment buyers to try electric machines to understand their potential in the region.

the market over a decade ago, and is now benefitting from its established network aftersales and servicing centres.

“Over last year, you are starting to see that the industry is moving over into Saudi Arabia.

The amount of work is unbelievable. The scale is huge, and they want to do it in a very short time. That’s putting pressure on everyone. That’s why you see thousands and thousands of machines getting into Saudi. But until now, the market has been very short on contractors and machines,” remarks Ramez as he explains the potential for FAMCO. However, while his company is well-positioned when it comes to supplying the booming market, he stresses that industry observers must not overlook the resilience of the UAE market too.

“Abu Dhabi is putting money into the market, Dubai as well. They’ve set a very strong budget. I would anticipate that there will be competition with Saudi Arabia, and it’s always a competition to attract the best talent, the best contractors and subcontractor companies. But from our side we are supporting both countries through our main hub here.”

With the interview coming to a close, Ramez’ final comments raise an interesting question for a regionally expanding company. Does FAMCO really need to hold on to its UAE heritage?

“The UAE will always remain at the heart of FAMCO, it’s where the headquarters are.

It’s home.”

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FEATURE JANUARY-FEBRUARY 2024

WHEN TIMING IS EVERYTHING

CMME SITS DOWN AL SHIRAWI MACHINERY AND HD HYUNDAI CONSTRUCTION EQUIPMENT AT THEIR LAUNCH EVENT IN DUBAI TO UNDERSTAND WHY NOW IS THE RIGHT TIME FOR

L

ast month saw as a major development for two of the biggest names construction industry in the UAE after Al Shirawi Machinery and HD Hyundai Construction Equipment announced they were embarking on a new partnership which they promise will re-shape the UAE market.

CMME was at the official signing ceremony, held in Dubai, and was told by Thani Al Shirawi, CEO of Al Shirawi Machinery, Vice Chairman and Group Deputy Managing Director at Oasis Investment Company & Al Shirawi Group and Eli Park, Managing Director, Middle East & Africa, HD Hyundai Construction Equipment that the move marks the culmination of five years of planning. Both believe that their combined forces are

poised to revolutionise the construction sector with state-of-the-art technology and a shared vision for innovation and customer support.

The first major announcement of its type in 2024, the ceremony was itself was graced by eminent figures from both organizations and the diplomatic community. Among the attendees were His Excellency Jehseung Yoo, Ambassador of the Republic of Korea to the UAE. Mohamed Abdulla Mohamed Al Shirawi, Chairman of Oasis Investment Company; and Jason Byun, Senior Vice President & Head of Overseas Sales at Hyundai Construction Equipment.

Thani Al Shirawi expressed his enthusiasm about the collaboration with Hyundai Construction Equipment, describing it as “a revolutionary partnership in a new transformative era for construction in the UAE market.”

Jason Byun, SVP Head of Overseas Sales at Hyundai Construction Equipment, echoed this sentiment, emphasising Hyundai’s renewed commitment to the UAE market and its determination to elevate its performance through Al Shirawi’s aftersales and support: “Hyundai is making remarkable return to the UAE. We will work closely to revive bonds with our customers,” he told the audience.

During the event, Al Shirawi Machinery spokesperson underscored the presence of dignitaries from both countries as a testament to the strong relationship between the UAE and Korea, both leaders in innovation and operational excellence.

His Excellency Jehseung Yoo, Ambassador of the Republic of Korea to the UAE, highlighted South Korea’s significant contributions to the UAE’s construction industry, including iconic projects like the Burj Khalifa. He expressed his congratulations

17 on the ambitious journey the two groups have embarked upon, emphasizing the sustainable partnership between the nations.

Highlighting South Korea’s contribution to the construction industry in the UAE, including the Burj Khalifa, described attending the signing ceremony as a great honour: “I congratulate them on embarking on their ambitious journey - where both groups make a commitment for a sustainable partnership,” he added.

Al Shirawi Machinery is renowned for its wide range of construction equipment, from mini excavators to heavy machinery, is committed to customer satisfaction and is the preferred choice for construction equipment in the UAE. The company provides access to the finest construction machines and comprehensive after-sales support.

Thani Al Shirawi, CEO of Al Shirawi Machinery, said the launch day marked the start of a new era in the UAE’s construction equipment industry, telling CMME that he was confident that the partnership between Hyundai and Al Shirawi Machinery would be “unmatched in customer satisfaction”.

“The 18th of January will be a date that will be remembered in in our market. It is a start of a of a new era in the construction industry in the United Arab Emirates. The partnership between Hyundai and Al-Shirawi Machinery will be so perfect that the customers will be addicted to us.”

HD Hyundai Construction Equipment (HCE) is a global leader in construction and material handling equipment. Committed to eco-friendly energy solutions and advancing construction equipment technology, HCE continues to innovate for a better future, promoting smart construction globally.

Eli Park, Managing Director of Hyundai Construction Equipment Dubai office, expressed his honor in announcing Hyundai’s return to the UAE market in partnership with Al Shirawi Machinery.

“I have definitely no doubt that Hyundai construction equipment and Al Shirawi Machinery will keep growing together through a close and sincere cooperation with each other for our customers here in the UAE,” he told CMME. “Al Shirawaii Machinery has an excellent and distinguishing ability when it comes to providing product support and services here. So in order to build a comfortable tomorrow here in the UAE, we will keep growing and we will keep going harder and harder.”

Park assured that the close cooperation between Hyundai Construction Equipment and Al Shirawi Machinery would lead to continued growth and excellence in providing product support and services in the UAE. Thani Al Shirawi highlighted the importance of specifying the right machine for the right application and providing unparalleled after-sales service. He emphasized that customer satisfaction and uninterrupted machine operation are the primary goals of their partnership.

“I’m very, very honored and pleased to hold this event with Al Shirawi. With the main purpose of this event to officially announce that we are back in the

UAE market. Until now, unfortunately, to be honest with you, we have not been able to provide any services to the customers here. So, I’m very, very happy to meet the industry and VIP guests here.”

The new partners believe the coming together of the two powerhouses marks a significant milestone in the UAE’s construction industry. They told CMME that the alliance is set to redefine the construction landscape in the UAE and beyond, offering customers unmatched quality and service.

“Customers that will try us will never leave us.

Visiting the Hyundai facilities in Korea was a day that I will not forget. I was very impressed with the facilities,

with the attention to detail and, the innovation that they are continuously putting into the machines,” he told CMME, adding that their shared commitment to innovation, customer support, and sustainable solutions, has all the ingredients to be a success.

“The recipe of success is not a secret: It is specifying the right machine for the right application.

Then providing second to none after sales service to our industry,” he said. “No news is good news.

So, when the customers don’t hear any news, this means that the machine is working. And that is our homework. And ffrom the days I was in school, I never missed a homework.”

“Hyundai is making remarkable return to the UAE. We will work closely to revive bonds with our customers”

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FEATURE JANUARY-FEBRUARY 2024

ROCK-SOLID ETHIC

CMME TAKES A LOOK BEHIND THE SCENES WITH ROKBAK’S FATHER AND SON DUO IN SCOTLAND

I

f you work with Rokbak, you can consider yourself part of a family. However, for two employees who have both carved out successful careers with the Scottish articulated hauler manufacturer, that family-feeling has an even greater meaning. In this article, father and son Tommy and Garry Moore discuss their roles and why they think Rokbak is such a good place to work.

Rock-solid ethics, strong values and a rewarding place of employment — though Rokbak articulated haulers may be making in-roads globally, with Rokbak ADTs in operation across Asia, America, Oceania and Europe, the

company’s reputation begins on the factory floor in Motherwell, Scotland. And that is built, first and foremost, on employee satisfaction.

Motherwell natives Tommy and Garry can proudly claim almost a quarter of a century’s experience with Rokbak between them. “It really is a great environment to work in,” says Rokbak Aftermarket Training Manager Tommy Moore.

“The way employees are treated, whether that be on the assembly line or in the boardroom, is the key quality of the company. Everyone is valued.”

The younger Moore, Garry, began at Rokbak in March 2010, starting on the assembly line with body and hoods before moving into the Training Manager role in 2018. In 2021, he became

Customer Support Manager, looking after Rokbak dealerships in the UK and across Africa. Tommy became Garry’s Rokbak colleague in 2016, also beginning on the assembly line building axles, and in the manufacturing engineering department and then customer solutions.

“Seeing our trucks in action first-hand and working closely with the people who operate them is a real reward for me,” explains Customer Support Manager Garry Moore. “We can sing the praises of the RA30 and RA40 all day long, but actually observing our machines up close and watching massive infrastructure projects being built knowing that you are some part of it is what it’s all about for me.”

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Though both Tommy and Garry call Rokbak home, they rarely find themselves in the same place at the same time.

“Our sales team visits specific regions to meet with different dealers to discuss the need for the product in the market,” explains Garry. “It’s my duty to ensure a dealer is firmly up to scratch on all things technical, including the aspects of warranty.

“Visiting a dealership regularly emphasises how we prioritise our relationships within our dealer network, which are crucial to our operation. It also ensures that each dealer is following the Rokbak process to the letter.”

Garry responds to technical queries, running through Haul Track telematics and supporting other members of the team working out of the Motherwell factory, as well as offering back-office support for colleagues in the USA, Australia and mainland Europe.

“I’m always out and about, visiting customers, dealers and job sites, conducting operator familiarisation,” says Garry. “This means taking the customers, technicians and the drivers through all of the RA30 or RA40 controls and making sure they know how to activate specific functions of each machine. We want to make sure these guys are going to be able to operate the trucks in a safe manner.”

technologies of the Rokbak hauler but provides production insight as well, from the electrics and diagnostics to capabilities and limitations, so customers can really get the most out of their haulers.

“Knowing the proper maintenance and start-up and shutdown procedures help keep costs low,” Tommy elaborates, “And as a result attendees are keen to learn. People can really see the benefits small changes can make to total cost of ownership (TCO). Keeping things fresh and

“Observing our machines up close and Bak Your Ambition watching massive Rokbak’s customer-centric approach is emphasised by its ‘Bak Your Ambition’ messaging. This is about infrastructure empowering efficiency by utilising the knowledge and expertise of Rokbak’s team of specialists to projects being built ease the pressure of tight margins and tough job sites by adopting the customer’s success incentive. knowing that you are Every person operating a Rokbak hauler is required to be fully up to date with the latest some part of it is what developments, with re-training programmes running across a four-day session every two years. it’s all about for me” This is where dad Tommy comes in. The course he teaches not only educates about the updated

sustaining communication is something positive to be part of.”

With more than two decades’ worth of experience with the company under their belts, Garry and Tommy have witnessed the growth of the Rokbak brand and the success of its products in the construction and earth-moving industries.

The biggest leap forward for the off-highway truck product line came in 2014 when the company was purchased by the Volvo Group to become a division of Volvo Construction Equipment. Since then, the Volvo Group has invested millions of pounds in the products, people and processes at the Motherwell factory, with significant improvements made in every aspect.

“There’s a lot of scope for people to progress here,” says Garry. “To see promotion from within and the excellent apprenticeship programmes available is great. Year on year we bring in apprentices who go on to full-time roles. It’s progressive and there’s good collaboration between the teams, between operations, technology, sales and marketing.

There’s a lot of good work that goes on.”

“We’ve got one of the best workshops in Scotland which benefits from continuous investment of the Volvo Group,” concludes Tommy. “What’s more, by being under the Volvo Group ownership, Volvo Group values and culture are part of our company.

Ethically, Rokbak is an incredible company to work for. There’s investment year on year and we’re always striving to improve.”

WE ARE BACK WITH NEW FEATURES

All the Nice Features of Previous Model Bodily Succeeded, Even Nicer Things to Come.

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For More Details Visit https://www.germangulf.com/contact

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FEATURE JANUARY-FEBRUARY 2024

RECYCLING ROCK STAR

ROCKSTER’S MOBILE IMPACT CRUSHER PRODUCING HIGHQUALITY AGGREGATE FOR KING SALMAN PARK IN RIYADH

I

n the heart of Riyadh, a groundbreaking project is underway to transform the cityscape into a green oasis. The future King Salman Park, a symbol of sustainable urban development, is making strides towards its realisation.

One key element of this endeavour is the utilisation of reliable European technology, such as of Rockster’s R1100d mobile impact crusher, to recycle limestone at the construction site, marking a significant leap towards environmentally responsible construction practices. Rockster service technician, Bernhard Stiebitzhofer travelled to hand over the crusher and gave a detailed two-day training workshop for the machine operators. As a versatile and efficient machine, the R1100d arrived in Riyadh in the September of 2023. It is designed to crush and recycle on-site not only construction materials, but also asphalt, concrete as well as natural stone. In the case of the King Salman Park project, limestone is being recycled to create a strong foundation for various structures within the park. This not only minimises the need for new raw materials but also significantly reduces the carbon footprint associated with traditional construction practices.

The R1100d is equipped with a powerful 380HP CAT C9.3 engine, a strong circular screen box as well as a double-functional return- or stockpile belt, which enables a 100% production of defined finalend product. Weighing at only 38t, the crusher is transported between job sites with ease as well as

put into operation within 10 minutes from the time of unloading. The crusher rotor is powered by a hydrostatic drive, which lets the engine run in optimal rpm mode and the crushing process to be finely adjusted depending on the material.

• On-Site Recycling: The crusher enables immediate recycling of construction materials, eliminating the need for off-site transportation.

• Resource Efficiency: By reusing limestone, the project minimises the demand for new raw materials, promoting sustainability.

• Cost-Effective: Recycling materials on-site reduces construction costs, aligning with Riyadh’s commitment to economic viability. The crusher itself has large engine compartment openings

making it extremely accessible when it comes to service and maintenance.

The booming branch of recycling As the King Salman Park project embraces the crusher, it mirrors a larger trend in the booming branch of recycling within construction. NEOM, The Line or Sindalah are just a few megaprojects where production of a quality aggregate plays an important role. Recycling technologies are transforming the way projects are conceived and executed. This thriving sector not only fosters innovation but also reinforces the notion that responsible construction practices are integral to shaping a resilient and sustainable world for generations to come.

As general agent for Bahri Line (one of the Business Units of the Saudi Arabian National Shipping Company) in Northern Europe and Scandinavia TO GROUP offers a wide range of cargo opportunities on six state-of-the-art vessels. With two trades from the USA (Global Service) and Europe to Far East (via Mediterranean Sea, Middle East, Asia, India and vice versa) you can reach your growth markets even better and faster from the Continent.

Each Ro/Con vessel is equipped with two heavy lift cranes and is perfectly designed to carry a wide range of products, from cars and commercial vehicles, construction materials, various IMO Classes, mining and agriculture machinery to various breakbulk products and containers.

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R E W O P RAW EED TO N U O Y G N I EVERY TH

KNOW

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26_NEW RELEASES The latest releases from the world of construction machinery.

30_A FORK IN THE MARKET’S ROAD The global forklift market is set to be 50% bigger by 2032.

ST TOP 10: FA CHANGE O T S Y A W E N TS ATTACHM ick u to make a q Top ten tips e g t chan . attachmen

32_DIGGING INTO HISTORY The world’s first 1t electric mini-ex digs into Naples’ past.

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NEW RELEASES JANUARY-FEBRUARY 2024

KTH4815 TELEHANDLER EXPANDS AGRICULTURE OPTIONS WHY GET IT?

MOOG LAUNCHES ZQUIP BATTERY PACK WHY GET IT? GROUNDBREAKING TECHNOLOGY CAN TRANSFORM DIESEL-POWERED CONSTRUCTION FLEETS INTO ZERO-EMISSIONS POWERHOUSES. ZQuip, a pioneering division of Moog Construction has introduced a new ZQuip modular energy so-lution. At the heart of the ZQuip energy kit which features 70- and 140-kWh Energy Modules. These versatile and interchangeable modules are designed to be compatible with any machine, regardless of size, type, or manufacturer.

Their flexibility ensures seamless integration into a variety of construc-tion equipment.

Comprising a battery harness, electric motor, and AI-driven thermal management system, this kit is engineered to ensure efficient energy use and longevity of the machinery. Advanced IoT capabilities provide real-time monitoring of fleet activities and battery life.

ZQuip’s technology allows for simultaneous conversions, optimizing energy and performance across the fleet rather than on a machine-by-machine basis. The system allows for precise battery capacity matching according to job requirements.

BATTERY TECHNOLOGY

ZERO EMISSION POWER By enabling the conversion of dieselpowered fleets into zero-emission machines, ZQuip is not only promoting environmental sustainability but also offering enhanced efficiency and cost savings. This innovative approach positions ZQuip at the forefront of ecofriendly construction technologies.

BY ENTERING INTO THE TELEHANDLER SEGMENT KUBOTA IS NOW PROVIDING A FULL-RANGE OF AGRI-MACHINES. Kubota has launched its first telehandler, called the KTH4815. This is a compact machine which has an overall width of 1.6m and an overall height of below 2m, making it a suitable loader for those with traditional livestock and poultry buildings.

It comes with a maximum lift height of 4.8m and a maximum lift capacity of 1.5t, depending on which model is chosen.

Hydraulic performance is provided by a pump with an output of 81L/min. 51L of this is available through an auxiliary circuit for powered attachments carried on the handler’s Eurohitch headstock.

In addition to a hydraulically locking headstock, the telehandler features a proportional joystick, with adjustable flow rate and memory function. Engine wise, it is powered by a EU Stage V emissions compliant Kubota D1803 three-cylinder motor with a peak output of 50hp.

The transverse mounting position is said to afford generous service access to the filters and the battery isolator, in addition to providing easy access to the handler’s cooling pack.

The Carraro axles are connected by mechanical driveshafts, although the transmission is a hydro-static Bosch Rexroth hydraulic unit delivering drive in two speed ranges – 0-7km/h and 0-25km/h. The powertrain on the KTH4815 includes multidisc brakes with permanent 4WD, with an option of a selectable front axle differential lock, to further help with traction.

Four versions of the telehandler are available; two are canopy equipped models with a curved front screen, and two use fully glazed cabs with a two-piece door.

The entry-level variant is supplied without a 170kg rear counterweight and is shod on 10/75×15.3 narrow tyres, reducing both its cost and overall weight. A wider, 31/15.5-15 skid steer tyre option is available.

The highest specification KTH4815-2 also includes three-mode steering, adding two-wheel and crab steering modes to the standard four-wheel steering function.

Using four-wheel steering, an outside turning radius of 2.7m can be achieved.

Engine service intervals are every 500 hours, and all four variants are offered with a two-year, 2,000-hour warranty.

SPECIFICATIONS

KTH4815 TELEHANDLER Power: 44 PS Maximum lifting capacity: 1,400 kg Maximum lifting height at hinge pin: 4,800 mm Overall height: 1,970 mm Three steering modes: 2-wheel, 4-wheel, and crab steering

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JOHN DEERE LAUNCHES MID-SIZE 444 G-TIER WHEEL LOADER WHY GET IT? FOR THOSE SEEKING AN ADDED TOUCH OF COMFORT, OPTIONAL AIRRIDE SUSPENSION SEAT AND RIDE CONTROL FEATURES HELP ELEVATE THE OPERATOR EXPERIENCE ON THE JOB. John Deere has introduced the 444 G-Tier wheel loader as part of its performance tiering strategy, offering customers a model that provides reliability without the extras that they would find in a P-Tier or X-Tier machine.

The versatility and ruggedness of the 444 G-Tier are similar to the previously introduced 544 and 644 G-Tier machines, but at a lower operating weight and smaller size. This latest addition to the wheel loader lineup aims to cater to the segment of the construction market that values simplicity and reli-ability and serves as a response to the demand for more economically priced wheel loader options that don’t compromise on quality and durability, according to the manufacturer.

“Our customers are always seeking the perfect solutions to meet their needs, and the introduction of the 444 G-Tier was a direct response to the demand for reliable and more economical options within our lineup of wheel loaders,” said Drew Miller, global product manager, wheel loaders, John Deere. “This model not only comes

in at an attractive price point, but it was also designed to perform and deliver the same durability and power customers expect from a John Deere machine.”

While offering a competitive price point, the 444 G-Tier still offers similar productivity as other mod-els in its size class, including the 444 P-Tier wheel loader and industry leaders in its category. Among its standout features, the 444 G-Tier can be equipped with optional high-lift, expanding the reach of the machine. The optional debris package, which comes equipped with a centrifugal air precleaner and an auto reversing fan, helps reduce downtime by enabling the operator to stay up and running on the job without pausing to remove job site debris.

This model also boasts protective transmission and bottom guards, which are specifically designed to fend off debris and ensure the machine’s longevity.

The stacked cooling package, with the hinged door for cleanout, can be set to automatically reverse at regular intervals, making for simplified maintenance.

Additionally, operators will benefit from the ground-level access on the machine’s left side, making refills of major fluids, fuel and DEF straightforward and simple.

This loader also boasts clear visibility for both transmission and hydraulic sight gauges,

enhancing access to important components when needed. Further enhancing its userfriendly design, there is dedicated right-side access to the machine’s engine, aftertreatment systems and the cooling system.

With the operator’s ease of use and machine versatility at the forefront of its design, the 444 G-Tier is packed with familiar creature comforts. On the versatility front, the machine doesn’t fall short either. The 444 G-Tier can be equipped with a range of attachment options, from snow blades to grapples, ensuring adaptability across different tasks and applications. Lastly, the in-cab adjustable boom settings help streamline operations, especially when performing repetitive tasks.

Also helping to keep the job running smoothly, the 444 G-Tier features JDLink in base, which enables access to service advisor remote and expert alerts, as well as support from trained technicians.

SPECIFICATIONS

444 G-TIER WHEEL LOADER Power: 92 kW (124 hp) at 2,100 rpm Operating Weight: 10,026 kg Bucket Capacity: 1.9 m3 Breakout Force: 8000 kg

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TOP TEN JANUARY-FEBRUARY 2024

01 QUICK COUPLING Use hydraulic or mechanical quick couplers to rapidly change attachments without manual intervention. These devices allow operators to switch between buckets, grapples, hammers, and other tools with ease and safety.

02

PIN IT DOWN For equipment without quick couplers, manually remove and insert pins to attach or detach tools. This method requires stopping the machine and using tools like hammers and wrenches.

: N E T E P G TO N A H C K C I U Q R T IP S F O S T N E M H C A T T A L HELP L I F W S O D O ETH G THESE M N TIN TS O N N E E M M E L H P C A M I GHT I NG ATT I R G E N N A O H D C MENT IS ENSURE P I U Q E N CTIO CONSTRU

03

SIMPLIFY YOUR ROTATION Attach a hydraulic tiltrotator to enable 360-degree rotation and tilting of attachments, which simplifies the process of changing and positioning various tools.

EMPOWER THE R OPERATtoO ol control

anced Utilise adv erators at allow op th s m e st sy ure and config to change ally ic n o tr ts elec n e m h c a tt a ing ab, enhanc from the c g in c u d nd re efficiency a . rt o manual eff

04

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06 05

DEDICATE AN ATTACHMENT CHANGE AREA Designate a specific area on the construction site for changing attachments. Ensure it’s level and stable to facilitate a safe and efficient change process.

REGULAR MAINTENANCE IS KEY Keep the attachment mechanism, such as couplers and pins, wellmaintained and lubricated to ensure smooth operation and prevent rust or wear that can make changing attachments difficult.

K EEP IT LOCKrEeqDuipment

you Ensure that locking sa has a fety to secure mechanism This is ts in place. n e m h c a tt a tal ent acciden vital to prev t during detachmen operation.

USE HELP FROM OTHER EQUIPMENT Employ cranes, hoists, or other lifting devices to handle heavy attachments. This method is crucial for larger construction equipment where attachments are too heavy for manual handling.

07 10

09 08

TRAIN AND CERTIFY Provide proper training and certification for operators on safely changing attachments.

Understanding the specific equipment and attachment types is key to preventing accidents and damage.

READ THE GUIDELINES Always follow the manufacturer’s guidelines and recommendations for changing attachments.

Different types of equipment and attachments might require specific procedures or precautions.

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HARD HITTERS FEATURE JANUARY-FEBRUARY AUGUS T 2019 2024

THE GREAT LIFT

THE GLOBAL FORKLIFT MARKET IS SET TO BE 50% BIGGER BY 2032, INTERACT ANALYSIS’ MIAO XIAO TELLS CMME

S

trong growth in shipments of 4-5% is forecast for the global forklift market out to 2032, with greater competition driven by emerging technologies and rising global demand for logistics. According to global market intelligence specialist Interact Analysis, this is expected to fuel further innovation and development opportunities for the industry over the coming years, as the market looks set to grow by 50%, from around 2m units in 2022 to c.3m units in 2032.

Poor demand in China led to a contraction of 12.4% in shipments during 2022, with the Americas

and EMEA regions also witnessing a decline, leading Interact Analysis to reduce its forecast for 2023/24.

Order volume is expected to fall by around 6% in 2023 to 2 million units, marking the first time since 2019 it has dipped below the shipment volume.

Covid-19 pandemic-related supply chain issues caused a significant difference between order and shipment volumes, leading to a historical peak of 370,000 units in 2021, as shipments lagged far behind orders. The sector has been catching up ever since, but with a sharp fall in order volumes, Interact Analysis predicts 2024 will be a low point for the market.

However, there are clear signs of a recovery.

This is particularly evident in the performance of major forklift manufacturers, with an increase in growth momentum of new truck business among

these companies in 2023, following relatively slow growth over the past two years.

In its latest report, The Global Forklift Market – 2023, Interact Analysis reveals new business revenue for major forklift companies grew by 21% year-on-year during the first three-quarters of 2023 to reach $19.5 billion, significantly higher than the 5.2% recorded for the same period of 2022.

Demand for electrified forklifts has been surging in recent years and Interact Analysis predicts China and several countries in Europe will achieve a 50% electrification rate for forklifts as early as 2025. The global market share of Li-ion models is anticipated to surpass 50% in 2030, with Class 3.1 predicted to be the first category to achieve over 50% electrification.

Maya Xiao, Senior Research Analyst at Interact

31 Analysis, says, “Our study of electrification and autonomy trends in the forklift truck sector has revealed a challenging picture in the short-term.

However, we are expecting the market to rally from 2025, headed by the major forklift manufacturers, and to see the growing trend for electrification accelerate as early adopters such as China and some of the European countries continue to lead the way.”

According to Xiao, forklifts have seen new growth and demand in recent years driven by the rapid development of smart manufacturing and intelligent warehouses. External factors such as the strict emission standards and rising labor costs are also fueling demand, as the trend toward electrification becomes significant in the global forklift market.

Interact Analysis’ research manager, says the biggest question facing producers of forklifts is when will demand for lithium-ion forklifts, which, has been increasing rapidly, surpass the proportion of those powered by lead-acid batteries in electric forklifts by 2025 in China and some European countries.

It is expected that by 2030, the global market share of lithium-ion models will exceed 50% in all classes, and Class 3.1 will become the first forklift type to achieve over 50% lithium-ion rate. By 2032, many regions, including China, will achieve full lithium-ion rate of Class 3.1.

Interact Analysis uses the indicator of ‘50% critical turning point year’ as an important evaluation criterion. In this case, the term refers to the year in which lithium-ion models account for more than 50% of the sales of forklift models in the region for the first time.

The firms predicts Germany will see the proportion of lithium-ion battery Class 1 forklifts exceed 50% of Class 1 sales in 2030. This means

GLOBAL LI-ION FORKLIFT PENETRATION RATE (2022-2030) 2021 edition

2022 edition

60%

50%

40%

30%

20%

10%

2020

2021

2022

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that the shipment volume of lithium-ion models will exceed that of lead-acid models in this year.

“According to our forecasts, China and a number of European countries (France, Germany, Italy, Spain, the UK, and Sweden) will have the earliest 50% critical turning point year: that is, the proportion of lithium-ion/electric vehicle models(Class 1-3) will reach 50% as early as 2025,” says Xiao.

The Chinese market is predominantly driven by the rapid lithium-ion electrification of Class 3.1 forklifts. In 2022, the global shipment volume of Class 3.1 reached 355,318 units, of which 192,731 units were shipped in the Chinese market (over 60% of the total). The total volume of forklifts shipments in the Chinese market over the same year was 686,000 units, with Class 3.1 models accounting for 28.1%.

REV(US$ M) FROM NEW TRUCK BUSINESS FOR MAJOR PUBLIC VENDORS 2021

2022

2023

7,000

6,000

5,000

4,000

Source: Interact Analysis

3,000

2,000

1,000

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“The penetration rate of lithium-ion batteries in major European countries largely benefits from early electrification. In 2022, electric forklifts (including lead-acid, lithium-ion and fuel cell batteries) accounted for 67.8% of the global forklift market, 59.5% of the market in China, and about 90% across the European region. Compared with the dual line integration of gasoline to electric vehicles and lithium batteries replacing lead acid in other parts of the world, the European region has a greater focus on lithium-ion batteries replacing lead acid,” remarks Xiao.

The volume of lithium-ion forklifts in Africa is expected to reach 50% by 2029, primarily due to the dependence of the region’s market on imported forklifts from China. The penetration rate for lithium-ion batteries in forklifts in Africa is directly related to the product strategy of Chinese manufacturers.

By 2030, the lithium-ion penetration rate of Class 1 forklifts in most countries will exceed 50%, with the exception of Japan and South Korea, where local manufacturers dominate the market and have responded more slowly with lithium-ion electric vehicle models.

In terms of Class 2 forklifts, North America and Japan are the two largest markets. This is closely related to the level of automation in local warehouses and the type of shelving.

Class 3.1 forklifts will be the earliest model to reach the 50% critical turning point, and by 2025, all regions will achieve a 50% lithium penetration rate. Class 3.1 is also the only vehicle model to achieve full lithium electrification within the forecast period (before 2032). Class 3.2 forklifts are expected to reach the critical 50% turning point in European countries first, with this expected to occur around 2025, explains Xiao.

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THE LAST WORD JANUARY-FEBRUARY 2024

F I RS T 'S D L R O T HE W MINIC I R T C E L 1T E S INTO G I D R O T EXCAVA NAPLES C I R O T S I H

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