Sany IPO targets growth as overseas sales outpace domestic market

China-based construction machinery OEM Sany Heavy Industry plans to raise up to US$1.5 billion in a proposed initial public offering (IPO) on the Hong Kong stock exchange to support its global expansion efforts, as international sales continue to outpace demand in China.

Sany is one of the world’s biggest construction OEMs. Image: KHL/CLA

The planned listing, reported by the South China Morning Post, reflects the Chinese equipment giant’s push to double its overseas revenue and reduce reliance on a sluggish domestic market.

The move also reflects a broader shift in the company’s financing strategy, as Sany previously explored overseas fundraising via global depository receipts (GDRs), first targeting institutions in Switzerland and Frankfurt, before shelving those plans in 2024.

According to Jiang Qingbin, vice-president of parent company Sany Group, the company intends to use the IPO proceeds to build out local sales and service networks in key global markets.

“Globalisation is not about building factories,” Jiang told the Post. “It’s mainly about people – building localised marketing channels is probably the most important thing.”

Sany’s latest financial results underscore this pivot. In 2024, the company generated nearly $10.9 billion in total sales, a 6% year-on-year increase. Of that, about $6.8 billion, or 64%, came from international markets, marking a 12% increase over 2023.

Growth was led by the Asia and Australia regions, which together brought in about $2.9 billion, a 15.5% rise. Africa saw the sharpest gains, with revenue jumping 44% to $750 million. Europe and the Americas grew more modestly – up 1.9% and 6.6%, respectively – but still contributed more than $3 billion combined.

The majority of Sany’s 2024 revenue came from earthmoving, concrete, and hoisting machinery, with road machinery also seeing notable 20.8% growth.

The company said in a press release that it is “prioritising globalisation efforts” by establishing local production bases, R&D centres, and marketing teams to better serve regional demand.

While Sany maintains production facilities in the US, Brazil, Germany, India, and Europe, about 80% of its international revenue still came from direct exports, indicating that the company sees strong opportunity in building out post-sale service and localisation strategies rather than greenfield manufacturing.

A construction equipment race in China

Sany, like most China-based OEMs, is seeing an ever greater share of its sales come from international markets. Image: Sany

Sany’s global expansion aligns with a broader industry trend among Chinese equipment manufacturers.

Competitors like Zoomlion, XCMG, and LiuGong have also ramped up overseas sales amid waning domestic infrastructure demand.

Sany’s revenue from China declined 3.4% in 2024, down to about $3.8 billion, largely due to ongoing weakness in the real estate and construction sectors.

Jiang noted to the Post that the global market is “way bigger than China,” and reaffirmed that Sany would continue focusing on developing and emerging economies outside North America, where Chinese equipment brands are widely accepted.

A recent US–China agreement to temporarily lower reciprocal tariffs could ease global trade pressures and modestly improve Sany’s competitiveness in North America, even though that region currently accounts for only a small portion of its sales. The recent tariff reprieve may also help bolster investor confidence as the company prepares for its next phase of international growth.

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