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    China Daily Website

    Heavy machinery sales drop amid falling investment

    Updated: 2012-06-26 16:01
    ( Xinhua)

    BEIJING - China's sales of road pavers and bulldozers fell nearly 30 percent year on year in May due to a decrease in the number of infrastructure construction projects, the Shanghai Securities Journal reported Tuesday.

    Sales of loaders and excavators nationwide were also down 25.77 percent and 23.92 percent, respectively, the report said, citing data from China Construction Machinery Business Online, also known as 21-sun, an industrial information provider.

    The report said last month's sales drop was caused by a contraction of investment in transportation facilities. Analysts predicted that the nation's investment in road and railway construction will decline in 2012.

    The report said sluggish sales might squeeze less competitive companies out of the market and lead to more mergers and acquisitions by heavyweight companies.

    Despite sluggish business in general, excavators sold by Sany Group, China's largest machinery manufacturer, hit 1,333 units in May, up 8.64 percent year on year.

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