Focusing on China Ms. Huang Qun Do not refresh this file Presented By ZOOMLION HEAVY INDUSTRY SCIENCE & TECHNOLOGY DEVELOPMENT CO., LTD On 12th May 2011 in London

Overview of Global Tower Crane Market Presentation of nowadays Chinese Tower Crane Future Prospect of Chinese Tower Crane

Overview of Global Tower Crane Market Presentation of nowadays Chinese Tower Crane Future Prospect of Chinese Tower Crane

Source: AEM,HIS(Global Insight) Total Building Construction Around the World Billions of ＄ In 2009, global construction output fell by 11.5%. After 2011, an average annual growth rate of 6.5% is expected. But the Asia- Pacific region has maintained an average annual growth of 7%. 4380.2 3712.5 Source: AEM,HIS(Global Insight)

Global Tower Crane Market Size sets

Imbalanced Market Development Global Tower Crane Market Size China Europe Rest of the World Imbalanced Market Development Rapid Growth Phase Went done after 2008 accelerated urbanization process average annual 20.7% growth in real estate investment Speed ​​up the process of industrialization Credit crisis Sharp decline of construction activities Over stock of new equipments Lack of market confidence No replacement of the existing equipment From 2008 to 2010 North America, Russia and Japan markets went down sharply while Asia Pacific, Latin America, Middle East and North Africa markets emerged rising trend.

Tower Cranes Production and Demand by Area （2011） Chinese barriers: production costs and prices, distribution network, local Authorities influence European barriers: Advanced regulation, Service network, Customized production The Japanese, Koreans, Us, Brazilian, Russian and Indian demand is served also by small local players

Tower Cranes Production and Demand by Area （2015） The Chinese Installed Production Capacity could serve an additional share of the worldwide demand Europe could loose further production volumes, production facilities will move towards China The RoW will stay flat to serve local and tailored demand

Market Features and Drivers Europe China Crisis, Small market Negative trend of volumes Strict regulations (CE, EN) High service requirements Strong rental companies Residual value of products Exceeding production capacity Huge Market Still positive trend of volumes Huge production capacity Low technological requirements Distribution system is a barrier for non Chinese

Overview of Global Tower Crane Market Presentation of nowadays Chinese Tower Crane Future Prospect of Chinese Tower Crane

Global Sales and Service Network Powerful global sales network, with coverage of: China Europe America Australia South Asia The Middle East, etc. Perfect service system: Localization of spare parts centers

Product Serialization Product series: Topkit Luffing Topless Product range: From 25tm to 5200tm Product models: >100 models Service: To provide customers with comprehensive lifting solutions Topkit Luffing Topless

Large Scale Manufacturing Annual sales volume of tower crane: 100,000 sets Tower crane manufacturer: More than 500 manufacturers. Plant area: There are 10 manufacturers with plant area exceeding 120,000m2. Tower crane manufacture base: The world biggest single tower crane manufacture base is situated in China. The foreign tower crane manufacturers (including Potain) are flocking in China for establishment of manufacture plant.

Suspension chain coating system Production Modernization Suspension chain coating system Automated production line Advanced product coating line: 500m suspension chain coating system Extensive adoption of welding robots 100% guarantee by tooling Modern plant Welding robot

Suppliers’ modern plant Delivery of steel materials Quality Assurance Mature Supply Chain Suppliers’ modern plant Delivery of steel materials Quality Assurance The Chinese tower crane manufacture supply chain has been formed and is gradually getting matured Sufficient supply of raw materials, with the quality level reaching international advanced level Rich supplier resources, with systematic supply chain Localization of products of foreign tower crane manufacturers Steel material comparison between Chinese standard and other foreign standards Chinese standard DIN standard ISO standard EN standard Q235 st37 Fe360 S235JR Q255 st44 Fe430 - Q275 st50 Fe490 S275 Q345 Fe510 E355 S355

Internationalization of Standards The design standards are always in line with western developed countries and regions Rich absorption from contents of ISO, DIN, and EN international standards GB/T5031-2008 ISO 12480-3:2005 ISO 9927-3:2005 ISO 9374-3:2002 GB 5144-2006 EN14439: 2009 EN13586: 2008 ISO 7752-3:1993 GB/T 20304-2006 ISO 12485:1998 GB 5226.2-2002 IEC 60204-32:1998 ……

Independent innovation and intellectual property rights The biggest in world: 5,280 t.m Intellectual property rights: Independent R&D Development period: 8 months Product application: Ma’anshan Yangtze River Bridge Year: 2010 Surging independent innovation capability of Chinese tower crane industry Thoroughly escaped from the situation of heavily reliance on imported ultra-large tower cranes.

Cooperation Globalization Industry foothold: Independent innovation International cooperation: Proactively seeking extensive international cooperation. Cooperation mode: From pure technology introduction to all-round multiple sectors Cooperation description: Tower crane structure, mechanism, electric control, product certification, product service, etc. Cooperation territory: Worldwide

Deficiencies in Chinese Tower Crane Industry Enterprise management: Extensive, not intensive Manufacture capability: Uneven Testing measures: Simple, but with blind spots Product quality: To be further promoted Design concept: Lack of systematic design roadmap

Overview of Global Tower Crane Market Presentation of nowadays Chinese Tower Crane Future Prospect of Chinese Tower Crane

Completed investment in real estate (100 million RMB) Chinese Tower Crane Market Trend China’s urbanization ratio: approximate 40.7% currently, which will take 25 years to reach the level of advanced countries Chinese real estate investment: Annual 20.7% growth is expected Chinese tower crane market will bring about a boom period State Information Center Completed investment in real estate (100 million RMB) Newly added volume of tower crane (set)

Outlook over Overseas Market Export territory of tower crane: 144 countries and regions Average annual export amount: >328.33 million US$ Chinese tower crane products: Have become one of vital parts of world tower crane industry Expected economy recover: In 2012, we will have more opportunities Export amount of Chinese tower crane (10,000 US$) Data source: Customs trading data

Last Decade: We together witnessed the blooming market of Chinese tower cranes. Next Decade : China will proactively seek international high-end technology cooperation and further hold a big say in international standards.

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