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China trailer giant ready to hit UK
Page 14
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After nearly two years of planning, Chinese giant China International Marine Containers (CIMC) is about to begin selling its products directly to UK hauliers via a UK business partnership. Brian Jarvis reports.
EXCLUSIVE
IT HAS BEEN nearly two years since CIMC snapped up Burg Industries and set European minds whirling ('Chinese trailer giant moves in on Dutch firm', CM 16 February 2006). CIMC's main aims then were to set up a new joint company, imaginatively called Newco, and become the world's largest trailer manufacturer.
With 14 factories in China and one in North America, subsidiary company CIMC Vehicles Group has an annual capacity of approximately 120,000 units.
Its products are mainly ISO containers but it also builds a range of semi-trailers, road tankers and airport-related equipment.
Exports to the USA in 2006 totalled 38,000 trailers and this year this is expected to exceed 55,000 units. These numbers place CIMC just ahead of Wabash and on a par with global giant Great Dane, which manufactures around 55,000 trailers a year in the USA.
CIMC not only sells its products into America and its own domestic market; it has a strong presence in AustraliaJapan and Korea. Little wonder, therefore.that the EU Monopolies Commission was concerned enough to slow the European negotiations.
However, in August the Chinese giant finally cleared this hurdle and acquired 80% of the equity of Burg Industries, which concentrates on tanker production.
Having resolved its differences with the EU over the Burg buy-in, the Chinese giant began exploring the UK market with a view to establishing a foothold here.
To handle the notoriously conservative UK market, CIMC has linked up with two well known businessmen, Mike Rayner and Dave Moffett, to form a sales and service partnership near the mouth of the Humber.
Rayner's background is in container engineering while Moffett is a director of Immingham-based trailer manufacturer Clayden Engineering (see panel).
Both hope to take an active role in the business when CIMC registers a UK company.
The first trailers to go on sale here are expected to be flatbeds with a range of fixed and sliding skeletals. These are designed to accommodate containers up to 13.6m and the longest 45ft boxes.
Both chassis designs will be mounted on Granning axles and suspension which will have the usual lift-axle options; Truck-Lite will provide the lighting systems.
The first prototypes are expected to arrive in November with user trials soon afterwards. The imported trailers will be prepared for UK duties at Clayden Engineering's Humberside site before being delivered direct to customers. Clayden will also provide full UK service support and warranty backup.