Chinese success stories in Europe – SANY

In this new series, HI-COM will be taking a look at how certain Chinese companies have found success in foreign markets.

To kick off, we will look at SANY, a leading Chinese multinational corporation specializing in heavy machinery and equipment manufacturing. We will analyze its globalization strategy, which has shown how Chinese manufacturing can achieve global success through deep localization, tech co-creation, and cultural integration.

Amidst fierce competition in the global construction machinery market, SANY has emerged as a benchmark for Chinese high-end manufacturing. This has been achieved by pioneering a strategy of localized management, technology co-creation, and cultural integration. Its overseas breakthroughs in Europe and beyond offer critical insights into globalization’s core logic: deep localization powered by technological innovation.

Below are some of the key strategies that have brought such great success.

Hiring local people, for local matters

Example: SANY’s German R&D Center

• At its German R&D Center, over 80% of employees are locals
• All senior management positions are held by Germans, ensuring decisions match European market needs.
• The German team designed a thin-seam coal miner. As the team were fully familiar with EU safety rules and followed them closely, it gained over 25% of the market share in its first year.

Operational Localization: a “Front Shop, Back Factory” Model

• The market team (front) is led by locals.
• The technical team (back) provides fast support from China.
• This creates a strong “market + technology” system.

Cultural Adaptation

• Blending German engineering precision with Chinese operational speed:
• German teams handle precision design for thin-seam coal miners
• Chinese teams ensure rapid prototyping (14-day cycle vs. industry-average 45 days)

Local Decision-Making

• Major decisions for the European market are voted on by the local team.
• The China headquarters only keeps veto power.
• This eliminates the old “remote control from headquarters” approach.

Joint R&D Ecosystems

• It co-developed electric excavators with German partners:
• The German team improved emissions (30% less nitrogen oxide)
• The Chinese team handled battery management and cost control
• Result: The products obtained both the EU CE and German TÜV certifications

Smarter Supply Chains

• The key parts of SANY products are made in Europe; its hydraulic systems and engines are 100% European to ensure optimum quality
• Technological exchange: SANY brought China’s 5G factory tech to German plants, boosting productivity by 25% while cutting energy use by 18%

Setting New Standards

• SANY has assisted in writing German machinery safety rules. It has also published an industry report on electric machinery with German researchers. Therefore it has gone from being rule followers to rule makers.

Building Trust Through Culture

• SANY has a solid track record in training local talent. It is a valued partner of Munich Technical University, training 50 bilingual engineers every year, and as a result, 92% of European factory workers are now local hires.

Branding and Localization

• Localized Branding: SANY adjusted its brand message to resonate with European customers by adapting naming conventions, taglines, and marketing materials to fit local cultural expectations.

• Professional Translations: All product manuals, technical documents, and safety protocols were accurately translated to meet both regulatory and cultural standards.

• Marketing Localization: Campaigns were tailored to local sensibilities, ensuring that visuals, slogans, and tone aligned with regional norms.

• Transcreation for Impact: Instead of direct translation, SANY used transcreation to rewrite brand messages so they retained their emotional appeal in the local language.

• Multilingual Customer Experience: Sales, support, and promotional channels were all made available in the local language, which helped improve trust and engagement.

• Result: A more relatable brand image and higher conversion rates across European markets, especially in Germany and the Nordics.

Community Projects

• SANY funds scholarships for German engineers to study in China, sponsors local environmental projects and supports Bayern Munich’s youth soccer program

Shared Stories

• SANY has made various documentaries showing German/Chinese engineers solving problems together, and have documented several success stories from its European construction sites

Key Lessons for Global Expansion

• Local teams make better decisions than a head office located thousands of miles away in another country.
• Co-developing technology beats copying others
• Earning community trust matters more than advertising

Conclusion

Lasting success abroad comes from blending into local cultures, not just selling products. SANY’s approach shows how Chinese companies can move from simply being economical suppliers of products to respected global partners.

Key Milestones:

• : 2015 – The Bedburg Industrial Park is inaugurated
• : 2018 – The EU Stage V certification is obtained for 20-ton excavators
• : 2021 – Co-development with VDMA standards
• : 2023 – #3 market share in German excavator segment
• : 2024 – 100% electric product line released for Nordic markets