Technicians from China Communications Construction Co Ltd check cables of a bridge in Chongqing.
Construction group to substantially boost overseas sales to 50 percent by 2035
China Communications Construction Co Ltd, one of the country's largest infrastructure project providers by market share, will boost its overseas sales revenue to 50 percent of the total by 2035 via diversified operation models, machinery exports, overseas merger and acquisition, said its top executive.
The company's global sales accounted for 33 percent of its annual sales revenue in 2015, thanks to fast-growing business in countries along the Belt and Road Initiative, including Mombasa-Nairobi Standard Gauge Railway in Kenya, construction work of Gwadar Port in Pakistan, and Sri Lanka's Colombo International Financial City project.
The infrastructure, service and trade network proposed by China in 2013 envisions a Silk Road Economic Belt and a 21st Century Maritime Silk Road, covering about 4.4 billion people in more than 60 countries and regions in Asia, Europe and Africa.
Liu Qitao, chairman of CCCC, said the group will focus on developing high-end infrastructure and manufacturing projects including ports, highways, underwater tunnels, offshore engineering products and cranes, to boost sales in overseas markets during the 13th Five-Year Plan (2016-20).
CCCC is a State-owned enterprise listed on the Hong Kong Stock Exchange that has businesses designing and building transportation infrastructure, and manufactures dredging and other heavy machinery. The group's sales revenue amounted to .76 billion in 2015.
"Unlike other Chinese construction companies, which only focus on engineering, procurement and construction projects, or EPC projects, our subsidiaries have gradually transferred their pillar business from EPC into new business models such as build-operate-transfer, and public-private-partnership for both the public and private sectors," said Liu.
EPC projects are a common form of contracting arrangement in the construction industry.
Having a market presence in 135 countries and regions, CCCC to date has established 193 branches and offices in 103 of them. It has over 60 subsidiaries, including China Harbor Engineering Corp, China Road and Bridge Corp and Shanghai Zhenhua Heavy Industries Co.
With a total contract amount of billion, the Chinese company has undertaken more than 2,000 infrastructure projects in 58 countries and regions along the Belt and Road Initiative, including railways, roads, bridges, tunnels, airports and harbors between 2013 and the first half of 2016.
Eager to enhance its global service ability, CCCC invested 6.3 billion yuan (6 million) to acquire John Holland, a subsidiary of Australian construction company Leighton Holdings Ltd last year.
This move will help CCCC further expand its market presence in sectors including tunnel building, railway operation and construction in Australia and other developed markets such as New Zealand, the United Kingdom and Canada.