Issue link: https://read.dmtmag.com/i/141651
New Wave continued from page 51 ing markets. At the Bauma China show in November 2012, Volvo launched the L105 wheeled loader – a maximum 4.5 m3 bucket capacity, 18 tonne category machine that will be manufactured in China and that has been specifically developed to suit the demands of Chinese customers. Hyundai is also adding to its earthmoving ranges for emerging markets and highly regulated markets. It has been busy developing its 9A Series machines that comply with Tier 4 Interim/Stage IIIB-laws, as well as launching new Tier II-compliant machinery. The 9A Series includes crawler excavators up to 120 tonnes and wheeled loaders with bucket capacities up to 6 m3. As well as featuring emissions-compliant Perkins and Cummins engines with EGR and DPFs standard for machines over 130 kW, the new machines feature a number of enhanced features, such as electrically controlled joysticks on some wheeled loader models, new operating modes, automatic differentials and touch displays. On the other hand, the 2.2 m3 maximum bucket capacity SL30 and 4 m3 maximum bucket capacity SL760 wheeled loaders that Hyundai introduced in India sport Tier 2 compliant engines, and the design focus has been more on robust structures, enhanced reliability and efficient maintenance systems. Other earthmoving manufacturers have focused on markets outside of the highly-regulated North American, European and Japanese regions. China's XGMA, for example, has this year added to its H Series of wheeled load- IDA UNIVERSAL July-August 2013 ers with the XG935H, a 1.5 to 1 m3 bucket capacity machine for sale throughout Asia, the Middle East, Russia, Middle and South America and Africa. XGMA said the H Series range could be tailored to the needs of different regional overseas markets. For South America and the Middle East, the loaders are designed with a small turning radius for better flexibility and efficiency. For Russia, the engines are available with a cold start function for performance in extremely cold conditions, while models sold in Southeast Asia can feature extended dump heights of up to 2.8 m to meet special agricultural demands. XGMA has four subsidiaries located in Hong Kong, UAE, Ethiopia and Europe. In the latter, it has built regional logistics and service centres in Bulgaria, Spain and France. The manufacturer said it also aimed to set up a new subsidiary in Brazil in the future. Servicing But it takes time to build up service networks, and the emissions laws in Europe, North America and Japan are certainly playing their part in raising the barrier of entry for new competition. Indeed, many believe the pressures of not only supplying Tier 4 Final machines, but servicing them too, as well as supporting demand in the rest of the world, will result in big changes for the construction equipment industry as a whole. Yanmar Construction Equipment Europe managing director Jean-Marc Reynaud summed up the situation. "The emissions regulations will really be a game changer for the industry. Look at the value chain – it is very fragile in terms of profit. But we all have to adapt, and manufacturers from Asian countries must also adapt if they want to sell into Europe, for instance. "But it's not as simple as just swapping engines – when you bring in a DPF, the question is how do you adapt your service proposal to customers to clean it? This is where your network becomes very important, and it will be a challenge for some to build a service network from scratch." There is also a looming issue concerning the second hand market for Tier 4 Interim and Tier 4 Final-compliant machines. Their highly sensitive engine components cannot cope with high sulfur fuel, and will simply break down if used in countries where fuel quality is low. This has an obvious impact on where the machines can be used, and while this may not be an issue for the initial buyer, it could be a factor when selling a machine later. Although some years down the line, this is an issue that the industry needs to be thinking about now, as it clearly affects the residual value of these new machines. ● www.khl.com, 23 Apr 2013 53