XCMG Secures Order for 500 on-highway trucks in Zambia

Deal marks XCMG's first RMB financing and settlement transaction in Southern Africa

XCMG, a global construction machinery manufacturer, recently signed an order for 500 on-highway trucks in Zambia, completing its first RMB-denominated financing and settlement transaction in the market. The deal combines equipment supply with tailored financing, providing the customer with a complete equipment procurement and financing solution.

Products and Lifecycle Services Help Secure the Order

Zambia is a key market for infrastructure development in Southern Africa. Its road construction sector has grown rapidly in recent years, driving demand for reliable construction equipment with high uptime. To meet these requirements, XCMG provides equipment backed by comprehensive lifecycle services, including equipment selection advice, operator training, spare parts and responsive after-sales service. These combined equipment and service capabilities played an important role in securing the order.

Tailored Financing Secures the Deal

The transaction moved beyond traditional installment arrangements by incorporating financing earlier in the sales process. XCMG developed an integrated equipment procurement and financing package to meet the customer's needs, helping bring the deal to completion. This approach also provides a potential model for future road construction, mining and infrastructure projects.

XCMG's Hong Kong treasury platform facilitated coordination across the sales, customer relations, trade and treasury functions involved in the transaction. The arrangement enabled the customer to complete the purchase while allowing XCMG to receive the full sales proceeds in a single payment, lowering financing costs and improving capital turnover.

Expanding Cooperation with Financial Institutions

XCMG is also building closer relationships with financial institutions to expand financing options for its overseas customers. On October 8, XCMG Group held discussions with the Export-Import Bank of China on high-end equipment exports and new approaches to cross-border financing. XCMG Group received the bank's "Global Strategic Customer" designation. The two sides also discussed expanding their cooperation in overseas markets and on major projects.

XCMG will continue to expand its financing capabilities, develop solutions tailored to individual markets, and offer customers worldwide comprehensive equipment and financing packages to meet their diverse needs.