Zoomlion Heavy Industry Science & Technology Co. said slower expansion in China’s demand for cranes and excavators will carry on next year because of waning economic growth and cutbacks in railway building. Chairman and Chief Executive Officer Zhan Chunxin said meeting a 50 billion yuan ($7.9 billion) sales target for this year will also be “challenging.”
The stock price of China’s second-biggest maker of construction equipment fell 7% in Hong Kong trading as the comment added to signs of cooling in the nation’s economy and in spending on new factories and houses. Changsha-based Zoomlion plans to offset the slowdown, and competition from Sany Heavy Industry and Caterpillar by opening plants in Japan, Brazil and India.
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