Exploring China’s Vast Market: Insights from Shanghai Trip

Above image: Max Torkar takes in the sights of Shanghai.

DEUTZ Australia’s Managing Director, Craig Chamberlin, and Finance and General Manager, Max Torkar, embarked on a significant journey to Shanghai in late January. Their purpose was to delve into DEUTZ’s plans within China, a market renowned as the world’s largest for individual engines.

During their visit, they engaged with senior DEUTZ colleagues, gaining valuable insights into China’s immense potential. Fortunately, they returned before the emergence of the coronavirus pandemic, which soon engulfed the globe.

Although their trip was brief, it proved to be eventful as they managed to explore the captivating sights of Shanghai’s renowned waterfront area and establish vital connections.

Max and Craig departed from Australia on a Thursday and were back by Monday, encompassing a whirlwind of meetings held on Friday and Saturday. The entire journey, from door to door, spanned a gruelling 18 hours.

Following preliminary discussions on Friday, they attended the DEUTZ Asia annual meeting on Saturday, January 18. The gathering focused on identifying opportunities within China, a market that stands as the largest individual engine market worldwide.

DEUTZ AG strategically restructures its market presence in China through partnerships with three prominent Chinese companies: SANY, HORIZON, and BEINEI.

The joint venture with SANY, China’s largest construction equipment group, commenced at the end of December. The initial plan involves constructing approximately 75,000 new engines in 2022 at a new factory in Changsha, the capital of Hunan province. Production is slated to commence in 2021.

Max describes the trip as an excellent opportunity to meet DEUTZ’s Board of Management Chairman, Dr. Frank Hiller, and numerous international colleagues. They also gained insights into the progress made in production facilities that could potentially supply engines to Australia.

“The annual meeting brought together employees from the China office, along with key personnel from Australia, Singapore, Korea, Japan, and India,” Max explains.

“The main agenda focused on achievements and future prospects in Asia/China. DEUTZ is making significant investments in China with offices in Beijing and Shanghai. Coinciding with our visit, there was a signing ceremony with SANY.”

While the trip was undoubtedly packed with meetings, Max and Craig managed to seize a brief moment to explore some of Shanghai’s iconic historic buildings.

“Although most of our time was spent in meetings, we did take a walk around the city, including The Bund, the famous waterfront promenade offering captivating views of the city,” Max reminisces.

Fortunately, at that time, the coronavirus had not yet emerged as a concern, allowing them to return home safely. “Our main worry was consuming too much Baijiu, the traditional local grain-based brew,” Max adds with a lighthearted tone.

Their expedition to Shanghai provided invaluable insights into China’s vast market potential, fostering connections and paving the way for future collaborations in this dynamic region.