XCMG's Strategic Move into Morocco
The Chinese construction machinery giant, XCMG Construction Machinery, has strategically chosen Casablanca as the hub for its direct expansion into Morocco. The company has established a wholly-owned subsidiary with a capital of 900,000 dirhams, allowing it to engage in activities such as selling, renting, importing, and exporting its heavy equipment. Furthermore, this new entity is also tasked with providing operational services related to these machines. This move is particularly significant as XCMG sets its sights on participating in the infrastructural projects associated with the upcoming 2030 World Cup.
In March, XCMG had already announced its engagement in the construction of the Grand Stadium Hassan II by deploying ten tower cranes, including eight XGT360E-20S1 models and two XGT800-40S models. To ensure operational excellence, the company has dispatched a dedicated team responsible for the installation, adjustment, maintenance, and technical support of this equipment. The establishment of this Moroccan subsidiary marks a pivotal shift for XCMG, which previously operated in the region primarily through equipment sales and support for major construction projects. With XuGong Morocco, the company now possesses a dedicated local entity to enhance its commercial operations, equipment rental, and technical services, especially as international markets have begun to account for more than half of its total revenue for the first time.
Significant Growth and Global Expansion
XuGong Morocco has been structured as a single-member limited liability company, focusing on the import, export, purchase, sale, renting, and trading of various categories of construction and transportation machinery. This subsidiary is classified among XCMG's foreign entities that specialize in "sales, operations, and services," and it operates its accounting in dirhams, with its primary revenue and expenses denominated in Moroccan currency. While XCMG has not yet disclosed specific revenue or profit figures for this subsidiary, the company has noted that its financial contribution is currently considered "minimal," reflecting its recent establishment. Nonetheless, this subsidiary provides a permanent local presence, complementing XCMG's already visible involvement in the heavy equipment sector, where it offers a range of products including cranes, excavators, loaders, bulldozers, road and mining machinery, foundation equipment, concrete machines, aerial work platforms, trucks, and handling equipment.
XCMG's presence was further highlighted during a recent trade show in Casablanca dedicated to mining machinery and construction equipment, where the company showcased six categories of machinery and announced an order for six sets of equipment. This Moroccan establishment is particularly aligned with XCMG's international expansion efforts, which have seen the company achieve a remarkable revenue of 61.247 billion yuan in the first half of 2026, approximately 84.59 billion dirhams, marking an 11.75% increase year-over-year. Notably, sales outside of China reached 30.917 billion yuan, nearly 42.70 billion dirhams, reflecting a robust growth of 21.03% and accounting for 50.48% of total revenue, surpassing domestic sales for the first time.
In China, revenue stood at 30.330 billion yuan, around 41.89 billion dirhams, with a growth of 3.65%. XCMG also reported a gross margin of 24.76% on its international activities, compared to 19.42% in its domestic market. However, the net profit attributable to shareholders fell by 9.09% to 3.962 billion yuan, approximately 5.47 billion dirhams. Excluding exceptional items, the profit decreased by 14.28% to 3.829 billion yuan, or about 5.29 billion dirhams. The group has invested 3.296 billion yuan in research and development during the first half of the year, which is roughly 4.55 billion dirhams, representing a 25.07% increase from the previous year. Additionally, net cash flows from operating activities increased by 11.63% to 4.158 billion yuan, approximately 5.74 billion dirhams.
The excavating machinery segment remains XCMG's primary business, generating 21.749 billion yuan, around 30.04 billion dirhams, which constitutes 35.51% of its total revenue and reflects a 27.80% increase. Lifting machinery accounted for 12.608 billion yuan, nearly 17.41 billion dirhams, up by 20.37%, while mining equipment generated 4.831 billion yuan, about 6.67 billion dirhams. Concurrently, XCMG has established new entities in France, Kyrgyzstan, Nigeria, and Indonesia. With the establishment of operations in Casablanca, the Chinese company is solidifying its global footprint, as its international markets increasingly overshadow its domestic activities.
As reported by barlamane.com.
