Indonesia is the world’s largest exporter of thermal coal and its mining industry is worth in excess of US$ 100 billion. Despite a recent slow-down in demand for natural resources, the Volvo Group took the opportunity to demonstrate its commitment and optimism towards a fast recovery for the mining sector at Indonesia’s biggest industry exposition – Mining Indonesia 2013. The show attracted 20,000 visitors and hosted 800 exhibitors from 43 countries around the world.
Volvo Construction Equipment (Volvo CE) has been committed to delivering fuel efficient and productive equipment to the Indonesian market for over 30 years, and the range of construction equipment and aftermarket support available in the region continues to improve and broaden. Volvo CE joined Volvo Trucks, UD Trucks and Renault Trucks to demonstrate the Volvo Group’s integrated approach to offering a complete beginning-to-end solution for any mining operation.
A united front
At the Volvo Group’s joint press conference, Executive Vice President for Truck Sales & Marketing in Asia, Joachim Rosenberg, said: “Since the 1960s, the Volvo Group has turned its attention to Asia and the region now makes up almost a quarter of our total turnover – an estimated $11 billion. This growth has been both organic and acquisition driven.”
One recent acquisition – the Volvo Group’s Chinese construction equipment joint-venture partner, Shandong Lingong Machinery Co., Ltd. (SDLG) – was also exhibiting at the show. The Group acquired a majority share of China’s leading wheel loader manufacturer in 2005 and the company has since seen rapid growth in export markets as a result. SDLG is now the
leading Chinese construction equipment manufacturer outside of the North American and European markets. Other acquisitions in the region include Samsung Heavy Industries in Korea and UD Trucks in Japan.
Volvo CE strengthens its commitment
In 2011, Volvo CE strengthened its market position in Indonesia with the appointment of a second authorized dealer, PT Indotruck Utama (ITU), ensuring complete coverage of Sumatra, Java, Nusa Tenggara and Papua. This appointment formed part of the company’s strategy to expand its presence in Indonesia and ITU joined forces with long-standing dealer, PT Intraco Penta Prima Servis, which serves Kalimantan, Sulawesi and Maluku. With this extended coverage, Volvo CE is able to offer customers a closer, more localized relationship and faster on-site maintenance and parts delivery.
At the show, Volvo CE’s vice president for sales & marketing throughout Asia-Pacific, Roger Tan, said: “All of our salespeople and service technicians receive world-class training in their area of expertise and we are confident that our strong team here in Indonesia will continue to serve the market in the professional manner that they have become accustomed to.”
Industry-leading product innovation
The Group’s construction equipment division took the opportunity to launch the EC220 D-Series excavator – featuring increased power, the new fuel-saving ECO mode, a safer and more ergonomic cab design and a reinforced structure. It’s an evolution of the popular EC210 Series, and this new generation demonstrates Volvo CE’s dedication to improving quality, safety and care for the environment in the Indonesian market.
Also being showcased at the event was the 70-ton excavator, which has the power and performance of a much bigger machine, thanks to the Volvo V-ACT engine. The EC700CL offers industry-leading fuel efficiency, allowing customers to gain faster payback on their investment. The A40F articulated hauler, winner of the prestigious Red Dot ‘Best of the Best’ award was on display alongside the latest G-Series wheel loaders.
It wasn’t all about Volvo’s construction offerings though, and the Group’s truck brands also had much to offer visitors to the show. In his press conference speech, Rosenberg spoke about UD Trucks new Quester range that has been specially designed for growth markets. “Previously trucks were designed for the Japanese market and adapted for export. The Quester range has been designed from the ground-up for growth markets such as Indonesia,” he says, “It’s not only a game-changer for UD Trucks, but for the whole market.”
When asked about the future of UD Trucks in the Indonesian market, Rosenberg confirmed that the company sees this populous nation – of over 250 million inhabitants – as becoming the biggest market for UD Trucks in the future, overtaking its current largest market, Japan. He said: “The Indonesian government has an impressive growth plan for attracting new foreign industry and investment, as well as plans to continue improving infrastructure. There is a great deal of opportunities here for us.”
Much more than a machine manufacturer
In addition to manufacturing machinery, Volvo CE used the Jakarta-based exhibition to demonstrate its ability to develop industry-leading technology that increases machine uptime. A good example is the patented telematics system, CareTrack, which offers remote access to machine monitoring information, helping owners to reduce their fuel costs, optimize performance and to manage a whole fleets’ service plan.
Also in the aftermarket offering for the Indonesian market is a range of Volvo-branded attachments, including a full range of buckets and hydraulic breakers that match the machine design to ensure maximum performance and durability.
“Mining is still a very important part of our Volvo CE business in Indonesia and we think the sector will recover relatively quickly,” explains Tan. “In the meantime, we will be working with our dealers to penetrate other segments, while continuing to deliver the best products and services to this important market.”
Text: Holly Brace
For further information, please visit: www.volvoce.com/press
Manager, Corporate Communication
Volvo Construction Equipment
Sales Region APAC
Tel: int +65 9755 2271