KOREAN FIRMS CONTROL LION'S SHARE OF CHINA'S EXCAVATOR MARKET.

SEOUL, Aug 1 Asia Pulse - Korean excavators have cut out a strong presence in China's construction equipment sector, gobbling up 44 percent of the country's excavator market, industry sources said Wednesday.

Hyundai Heavy Industries Co. (HHI) and Daewoo Heavy Industries and Machinery Ltd. (DHIM) reported that they were currently the first and second place suppliers of backhoes in China.

HHI, which set up Changzhou Hyundai Construction Machinery Co. in 1995 has seen its revenues soar from US$830,000 in the first year to $92 million from January to June of this year. This constitutes an increase of 22 percent compared to the whole of last year when the Hyundai affiliate sold $75 million worth of equipment. It also made the company the largest excavator distributor, outselling well-known construction equipment makers like Hitachi, Komatsu, Kobelco and Caterpillar.

The company attributed its successes to its timely supply of products well suited to Chinese conditions. HHI reported it sold 360 pieces of equipment in March alone.

Daewoo, which lost the number one slot because it sold 27 fewer excavators than its rival, nevertheless reported strong sales.

The company entered the Chinese market a year after Hyundai, and after establishing the Daewoo Heavy Industries Yantai Co in Shandong Province sold 120 machines in 1996. This figure rose to 1,425 in 2000, and 1,269 ...