If Chen is right, excavators may soon go the way of wheel loaders in China.
FORBES: The Battle For China's Construction-Machinery Market
But in wheel loaders, the most common form of construction vehicle, Cat has a plan to dominate.
In May, sales of 22, 805 wheel loaders were only 2 percent higher than sales in May, 2010.
Even at China prices, the China market for wheel loaders and excavators is definitely worth the fight.
FORBES: The Battle For China's Construction-Machinery Market
And many large, important industries like trucks, diesel engines and wheel loaders are dominated by local players.
This facility will manufacture CAT986 large wheel loaders for mining and quarry applications.
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Through July, 134, 160 wheel loaders have been sold, a 63% increase from 2009.
FORBES: The Battle For China's Construction-Machinery Market
In January Cat completed its purchase of remaining shares in Shandong SEM Machinery, a leading maker of wheel loaders in China.
Wheel loaders outsell all other construction equipment in China by far--130, 000 last year, or 60% of all construction machines sold in 2007.
Its construction equipment business manufactures excavators, wheel loaders, forklifts and skid loaders.
Of the 134, 160 wheel loaders sold during the first seven months of the year, Liugong, Lonking, Xiagong, Lingong and Xugong accounted for 96, 677, or 72%.
FORBES: The Battle For China's Construction-Machinery Market
Two staples for any construction project are wheel loaders and excavators.
FORBES: The Battle For China's Construction-Machinery Market
In terms of winners and losers, the battle is already over in wheel loaders, with the local companies emerging as the clear winners and no foreign competitors in sight.
FORBES: The Battle For China's Construction-Machinery Market
In construction machinery, for example, sales of wheel loaders in April were down 28 percent, and excavator sales were down 40 percent, from the sales levels achieved in March, reflecting a slowdown in fixed asset investment.
These little four-wheel construction loaders can operate in tight places.
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