Seeking Alpha
View as an RSS Feed

Stenvall Skoeld & Co.  

Latest  |  Highest rated
  • As Chinese Companies Conquer Global Telecom Equipment, Other Industries Are Bound To Follow [View article]
    Thanks for commenting. We don't want to suggest that all the established players are doomed to failure as a result of the Chinese competition. But we do believe that the emergence of the Chinese construction machinery makers will have a negative impact on industry margins. As was the case in the telecom equipment industry, some companies will deal with this better than others.

    Non-Chinese heavy equipment manufacturers can obtain many of the advantages of the Chinese companies we mention in the article by increasing their footprint in China and other emerging markets. This is happening both in the form of acquisitions of competitive Chinese companies and in the form of Greenfield investments.

    The companies you mention have both invested in China. CAT, for example, is investing in both R&D and production capacity in order to develop "sustainable and cost-competitive local R&D resources to help Caterpillar compete in China and other growth markets."
    More here: http://bit.ly/O6pCVx

    Incidentally, CAT just recently began exporting China-made machinery to the Middle East and Africa.
    More here:
    http://reut.rs/O6pCVz
    Aug 9, 2012. 06:57 AM | Likes Like |Link to Comment
COMMENTS STATS
1 Comment
0 Likes