[Asia Economy Reporter Ki-min Lee] As the Chinese construction machinery market, which had contracted due to the novel coronavirus infection (COVID-19), shows signs of recovery, Doosan Infracore has secured a large-scale order for medium-sized excavators.
Doosan Infracore announced on the 6th that it had received an order for 32 units of 22-ton medium-sized excavators from two large infrastructure construction companies in Jilin Province, located in the northeastern region of China. Doosan Infracore explained that these machines will be used at infrastructure construction sites such as subways, highways, and bridges in Changchun City.
Yum Yoon-sung, Executive Vice President in charge of China sales at Doosan Infracore, said, "The customers who placed this order have expressed their intention to purchase more than 10 additional units," adding, "We will continue to secure additional orders through excellent product quality and trust-based relationships with customers."
Doosan Infracore recorded a 7.3% market share in the Chinese excavator market last year. In the Jilin Province area, it has maintained a market share in the 10% range over the past 3 to 4 years, and the cumulative market share as of February this year reached 13%.
China's manufacturing industry, which was severely contracted due to the impact of COVID-19 earlier this year, is recovering rapidly. On the 31st of last month, the National Bureau of Statistics of China announced that the 'March Manufacturing Purchasing Managers' Index (PMI)' was 52.0. This is a significant rebound following the record low of 35.7 recorded in February this year. A manufacturing PMI above 50 indicates an expansion phase in the economy.
The Chinese excavator market also recorded cumulative sales of about 14,000 units until February this year, which is about half the 27,000 units sold in the same period last year. However, sales exceeded 40,000 units in March alone, recovering to last year's level.
A Doosan Infracore official stated, "Demand in the Chinese market, which had slowed down for about two months at the beginning of the year, is normalizing," and added, "The industry expects the market's peak season to fully begin in April and May."
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