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GEM to extend SANY range even further in 2019
07 February 2019
GEM to extend SANY range even further in 2019

Despite tough market conditions, Goscor Earth Moving (GEM) achieved significant growth in 2018, and is poised to extend its SANY range even further in 2019. This includes the addition of an even larger excavator.
Currently GEM offers a 75 t SANY excavator for mining applications specifically, but MD Barry Owen reveals that an even larger model will be available this year. Despite the continued slowdown in the mining and construction industries, Owen highlights that GEM “had a good year in a bad environment.

“Remember that we are coming off of a relatively small base, so the fact that the market is difficult at present did not deter our growth.” This growth has been exponential, largely due to the increasing popularity and brand awareness of SANY in Africa in general.

“As the fifth-largest construction and related equipment manufacturer in the world, SANY is a major powerhouse, with impressive technology. Coupled with Goscor and the Bud Group, that makes for a formidable combination,” Owen stresses. “My message to all potential SANY customers is simply to talk to us, as we are here to find the optimum solution for your specific requirements.”

Owen comments that the recent acquisition of Goscor by the Bud Group “really reinforces the balance sheet. We are a highly entrenched business with an extensive history, having been around for 35 years. Goscor now has additional financial muscle behind it, without impacting on the entrepreneurial nature of the business. Hence it is very good to have the Bud Group on-board with us.”

Looking at current challenges, Owen says a key concern is the fragmentation occurring in the mining and construction industries, where major contracts are being awarded to smaller empowered ‘start-ups’ without major track records or even assets. “Here we have an opportunity to ensure we deal with the correct companies in this regard,” Owen reiterates. What gives GEM a distinct advantage in the marketplace is both its access to funding and capability to assist in securing the necessary financing.

GEM’s strategy for 2019 will continue to focus on its main areas of excavators, front-end loaders, graders, and rollers. “We do not foresee dramatic growth in any of the major industry sectors next year. It will probably be a bit better, but only marginally so. I think it will be more of a year of recovery. Hopefully we should see some improvement in 2020.

“Generally speaking, we will see ongoing growth in the SANY business, as we continue to gain traction. Therefore we are quite excited about 2019. Despite it being an election year, with anticipated stagnation surrounding major decisions on infrastructure spend, the period immediately thereafter will probably see some tough decisions being taken that will spur on an economic recovery,” Owen opines.

Another development on the cards for 2019 is to showcase the SANY SY335 34 t excavator as an intermediary machine for mining, construction, and agriculture. “This is a highly versatile excavator with broad application,” Owen notes. It reinforces GEM’s proposition of offering flexible, cost-effective equipment tailormade for harsh operating conditions.

“SANY has been built specifically to be able to operate in Africa. For example, the SYL956 front-end loader is billed as being ‘readymade’ for the continent. This is a simple machine with no over-abundance of electronics, meaning there is little that can go wrong with it. In addition, SANY only uses top-quality components from leading international OEMs,” Owen emphasises.

The focus on quality goes hand-in-hand with the current trend of reducing operating costs in order to boost the bottom line. “Of course, that is a function of what you pay for the machine, the cost of running it, and the cost of the finance. Given the current state of the market, this is where a lot of emphasis is being placed at the moment. There is less attention being paid to developments such as emissions standards. It will follow in due course, but it is not a driving force as of yet,” Owen concludes.

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