XCMG is synonymous with its Chinese origins, but in the past few years the company has been knocking louder on the door of the Australian market. We speak with the man behind the re-launch and establishment of XCMG in Australia.
XCMG is well known for its Chinese heritage, being one of the world’s three largest manufacturers of construction and heavy equipment.
But what some might not know is that XCMG has been operating in Australia for close to two decades. Today, XCMG has an extensive dealer and part network throughout the country, with capability to provide services nationwide.
The company’s status in Australia certainly didn’t come by chance, as General Manager Roy Rossini – XCMG Mining Equipment Australia can attest.
Just prior to 2020, XCMG finalised plans for further expansion into the Australian market. All it needed was a key figure that could help deliver this transition. When XCMG came knocking, Rossini says it was a tough opportunity to refuse.
“I’ve been in the construction and mining sector for over 40 years, working for several OEMs and working in my own business. COVID hit, and XCMG were communicating with me openly for a period, I’d seen them at a few trade shows,” he says.
“XCMG itself is a company that’s been successful overseas since the 1940s, in the very top tier of companies in the world in the construction and mining sectors.
“They offered me the opportunity to come and assist the building of their presence in Australia. They’ve already been here previously for about 17 years, but only in a small and modest way. Their previous approach was to bring a few machines over, sell them, then return to China. They didn’t have plans to establish a support network in Australia. That’s where I came in.”
From humble beginnings, Rossini made his mark and influenced the direction of the machinery manufacturer’s early years in Australia. A challenging, but enjoyable part of his role, as he explains.
“We started off with just one container with a bunch of products. After we unloaded them on site in Melbourne, we put the first machines out and started making modifications to improve the product. After that, I set up a dealer network from contacts that I already had in the industry, some of which I’ve known for many years,” Rossini says.
“We had more products coming in and we had a bit of instant success. In three years, we sold around 3000 units.”
The Australian criteria
Rossini says tailoring the existing product and service offering to best suit the Australian market was one of the first key steps to establishing XCMG’s presence domestically.
“The support and service network that you need to give to any market to make it successful is quite unique in Australia,” he says. “The number one priority was the need to set up a reputable dealer network, with dealers who had service and technical experience, support networks themselves with people on the ground and most importantly, people who understood the industry.”
The second step was establishing a headquarters for the planned expansion, a central site to support the national network.
“To have that base, which could have a million dollars’ worth of spare parts on the shelves, and technical people on the ground was imperative,” Rossini says. “Now we have long-term staff, a lot of whom have 20-30 years’ experience.
“They come with a unique set of qualifications and life experiences that helps to form the backbone of our business. Now we’ve got the equivalent of hundreds of years of experience injected into the organisation. Without that, we wouldn’t succeed.”
For its headquarters in Hallam, Melbourne, XCMG’s next phase is focused on having the systems in place to support additional growth and development, an aspect the XCMG team is still working on today.
Rossini adds that while all these steps have been crucial for establishing a sturdy foundation for future success, the most basic requirement is also the most important – having a decent product.
“You can’t go anywhere if you don’t have equipment that’s got great quality and is value for money for your customers,” he says.
“We’re not afraid to change as required within the industry. A key factor of our success has been listening and considering customer feedback, which has helped to shape product modifications and changes to our support network.
“From my point of view, XCMG has been, and still is, second to none in this area. I’ve never worked for an organisation that makes changes this quickly if there’s improvements to be had. It’s a unique operation here and we’ll continue to do that.”
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Machinery range
A core component of XCMG’s product range for the construction sector is its motor graders and rollers. These machines could be considered XCMG’s ‘bread and butter’ and as Rossini explains, are setting the standard for versatility and performance.
“Our graders have benefitted greatly from a joint venture with Rio Tinto, who have helped us to better develop and adjust the product to suit,” he says. “That includes our GR2605, which has a 14-foot blade, along with 260 horsepower.”
The GR2605 has been designed to suit motor grading projects of any scale, thanks to its blade pitch and grading precision, which make it an ideal candidate for several applications including surface levelling, not just road grading in isolation.
“We’re moving on to our stage two cabin design, which gives the operator greater visibility, while being more ergonomic. It’s an extremely viable product for the market, the price point is reasonable, and the quality is very good. There’s some in the industry that have been ‘inspired’ by our designs,” Rossini says.
Another exciting aspect of XCMG’s grader range has been its ventures into the battery technology space, with the company developing a variety of prototype, battery-powered graders.
“We will have the first grader in the world to run on battery energy and those concepts have already been realised through our prototype models,” Rossini says.
“We already have joint ventures and partnerships in place, along with a dedicated team in China. We’ve committed a lot of resources, it can be a challenge to implement that technology into massive machines, but we’re making progress right across the board in the battery space.”
When it comes to rollers, XCMG manufactures a variety of both single and double drum models, ideal for both paving roads and compacting soils.
Whether it’s a smooth drum roller, dirt packer, or a ride-on vibratory roller, Rossini says the XS123 is just one in a suite of rolling options for the Australian market.
“The 12 tonne is among the most popular in the marketplace at the moment,” he says. “Feedback has been really positive around that model and it’s a product that continues to progress with each of our factories dedicated to getting it right.”
XCMG is also aiming to implement brand new technology into its future roller units, this time in the form of autonomous operation. Operators should keep their eyes out, with the autonomous options set for a wider rollout soon.
These products and much more are backed up by XCMG’s support and servicing networks across the globe, an aspect that’s been instrumental in the growth of XCMG in Australia.
“We always keep the line of communication open between sites, so whether it’s a customer or a matter for us, we can speak directly with an engineer in the factory,” Rossini says. “Whenever we have any issues or suggestions, we can have those conversations quickly.
“I might be standing with a customer in front of a unit, and they might say the seat needs to move, or they’re used to the armrest being in this position, or they might need better visibility in a certain situation. Usually, a big manufacturer would just say ‘too bad, that’s how we make them’, but we don’t.”
Future plans
Reflecting on the progress made, Rossini says he’s “extremely proud” of how XCMG’s venture into the Australian market is progressing, from an initial foray, to now an established and growing international brand.
He says the collective minds of XCMG domestically, as well as the company’s vast international experience is ensuring that the manufacturer is rising in the ranks of Australia’s premier construction machinery brands.
“It has not been a small task by any means, it’s been a huge challenge. To see what we’ve done, building from nothing to where we are now in such a short time, that’s a massive achievement,” Rossini says.
“At the end of the day we’d be nowhere if it wasn’t for the team’s effort. They’ve all dedicated so much to reach the position that we’re in today. That’s the benefit of having people with so much experience in the sector and having established relationships. I trust what they’re saying and the direction they want to go and likewise, it’s a strong collective.”
And while it won’t happen overnight, XCMG has its sights firmly set on the top step of the podium.
“We don’t shy away from the fact that we’re gunning to be number one in the world. That’s what we’re aiming and growing towards. On top of our customer’s needs, that’s what pushes us every day.”
This article was originally published in the October edition of our magazine. To read the magazine, click here.
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