Tadano was 2013’s big Middle East winner
Japanese mobile crane seller Tadano experienced stratospheric sales growth in the Middle East in 2013, growing its sales revenue in the first half of the year by more than 100%
The Middle East made a big impact on Tadano’s bottom line: sales revenue here grew more than 100% in the first half of the year, from $36 million to $74.6m
In the Middle East Tadano expected to sell $160m worth of lifting equipment in 2013, up from $97.8m in 2012. While this represents real growth of 63.5%, it also lifted the Middle East as a region, to make up 9.4% of Tadano’s total sales worldwide, up from 7.5% in 2012 – and this at a time when its total sales grew 30%.
In the first half of the year, in the Middle East alone Tadano had sold 287 rough terrain cranes, 101 all-terrain cranes, and 46 truck cranes. From its own calculations it grew its market share in the region from 20.2% to 31.3% – a figure that excludes Chinese and Russian production from the global demand.
Globally in the first half of the year Tadano sold 4,218 units, up from 3,906 in 2012, and grew its worldwide market share from 23.5% to 27.8%.
2013 was a good year for sellers of construction machinery in the Gulf, with business confidence growing, but it may be mobile crane seller Tadano who made the biggest gains. Japan’s largest manufacturer of cranes and lifting equipment grew its full year interim revenue by some 38%, to $840 million, and reported its highest ever profit, in its 2013 interim results. Its forecast for total sales in 2013 is $1.7bn, growth of 40% from the previous year.
And the Middle East also made a big impact on Tadano’s bottom line: sales revenue here grew more than 100% in the first half of the year, from $36 million to $74.6m.
On a unit basis, it sold 434 mobile cranes in the first six months of 2013, up from 331 in 2012; and its market share in the Gulf rose from 20.2% to a massive 31.3%, though this figure excludes mobile cranes manufactured by Chinese companies. For the full year, it expects to sell $160m worth of lifting equipment here, an almost unfathomable growth figure of 63.5%.
As CMME reported last year, Japanese sellers of machinery have seen their fortunes improve steadily with the weaker Yen benefitting exporters, even to the point of over-demand, especially with the strong demand for mobile cranes globally, as well as the disaster recovery in their domestic market. But it seems that a close focus on the Middle East is bearing fruit for Tadano – its Dubai office opened in 2003, and its cranes are popular with rental companies, oil & gas, and construction companies.
Tadano’s dealers – including United Alsaqer Heavy Equipment in UAE, and Saleh & Abdulaziz Abahsain in Saudi Arabia, have seen strong sales growth. Abahsain said that it expected to sell 150 mobile cranes in 2013, with major customers including SABIC, as well as the crane rental companies that service Saudi Aramco
In September the dealer sold the first Tadano ATF400G-6 hydraulic all terrain crane sold in the Middle East. The ATC has a 5-section telescopic boom that extends to 60m, and its 49.6m fixed jib gives it an overall reach capacity of 109.6m, mounted over a special 12×8 all-wheel steerable chassis. The customer, Y K Almoayyed and Sons, also bought one 220t and two 110t all-terrain cranes in the same order.
In the UAE, the major buyer of Tadano is the oil and gas sector, says United Alsaqer’s sales manager, Walid El Dessouki. Its technology is well-adapted to the Middle East working conditions where reliability is a major factor, and the cranes are built with the well-regarded Nissan engines.
“In oil and gas, uptime is critical. We provide high quality after sales service through our fully equipped workshop and high qualified technicians,” said El Dessouki.
As strong as its sales performance was in the first half, on the technology front it also advanced. In August it announced a new model designed specifically for the energy markets in the Middle East and North America. The GR-1450EX-2 is the highest capacity rough terrain mobile crane in production, with a 145t rated lift, and already it is selling well.
The product was developed due to demand from the oil and gas industry, where jobs are requiring cranes with larger lifting capacities and longer boom length – the crane has a 61 metre, 6-section boom, plus two stage jib, extending the maximum working height to 78.3m and working radius to 64.9m. Built over three axles, it is also able to manoeuvre on tight jobsites.
Meanwhile in Japan, Tadano is known for its complete portfolio of mobile cranes, truck loader cranes and aerial work platforms. The company wants to expand its presence as an exporter, and is aiming to grow its international sales, from historical ratio of 50:50, to 20:80, with the majority being sold internationally.
In 2013, in a landmark move, the company opened a new plant in Thailand, its first plant for loader-cranes outside of Japan. Thailand is a popular manufacturing base for Japanese companies, due to the prevalence of second tier component suppliers there, and to de-couple production costs from the vagaries of the yen.
As production ramps up at the Thai plant, eventually reaching 1,000 units a year, the Middle East is again seen as a key market for overseas growth. The small truck-mounted loader cranes that are produced there allow operators to load, transport, and install cargo with a single unit. At the Thai plant it will produce 8t class and 5t class truck loader cranes.
There is also the option to expand production into other product areas in line with global demand, while the factory can be expanded to a point where it can produce 2,000 units annually – not an unlikely proposition if the company continues with its trajectory of strong growth.
