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Bettesworth Construction
Balikpapan

XCMG Breaks Ground on Mining-Equipment Remanufacturing Center in Indonesia

XCMG broke ground in Balikpapan on a planned center for mining-equipment component remanufacturing, parts support, refurbishment and technical training.

By Bettesworth Construction Team 2 min read
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XCMG held a groundbreaking ceremony for its Indonesia Remanufacturing Center in Balikpapan on September 16, 2026. The planned facility is a service hub for mining-equipment components and used equipment—not a new equipment-production plant. XCMG says it will handle component overhaul and remanufacturing, parts supply, equipment refurbishment, technical training and on-site service.

What XCMG is building in Balikpapan

XCMG describes the project as its first overseas center for major overhaul and remanufacturing of mining-equipment parts. The company held the groundbreaking ceremony on September 16, 2026; its announcement was distributed through PR Newswire on September 18. XCMG’s announcement and the company release on PR Newswire identify Balikpapan as the location.

The announcement concerns an aftermarket service operation, not a factory for producing new mining machines. XCMG’s stated plan brings together component overhaul and remanufacturing, regional parts warehousing, used-equipment refurbishment, local technical-talent development and field service.

What the planned center is intended to do

XCMG describes an operating chain that starts with used components and extends through service support:

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  1. Recover and inspect components: assess used parts for potential overhaul or remanufacture.
  2. Repair or remanufacture: restore eligible components using the company’s stated global remanufacturing standards and lean quality system.
  3. Store and supply parts: provide regional warehousing and parts support.
  4. Refurbish used equipment and provide on-site service: support equipment beyond component-level work.
  5. Develop local technical talent: train workers as part of the planned local service capability.

The announcements do not provide a component-by-component service list, so they do not establish which specific assemblies, machines or parts will be handled.

How local remanufacturing could affect downtime

A local overhaul and parts operation could reduce the time spent waiting for parts or sending components elsewhere for service. XCMG says the center is intended to shorten service response and equipment downtime and improve equipment availability once it is operating. Those are projected benefits: the announcements give no measured results, performance targets or comparison with existing service times.

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XCMG quoted an unnamed representative of an Indonesian mining customer who said local overhaul and spare-parts support would be faster and downtime losses easier to control. The speaker and company were not identified, and the statement is a customer comment published by XCMG, not independently verified performance evidence.

How the project fits XCMG’s Indonesian operations

XCMG presents the center as part of a wider localization strategy for equipment operations and aftermarket support. Chairman and Party Secretary Yang Dongsheng summarized the company’s stated approach as: “Globalization is localization.”

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In company-reported context, XCMG says it has operated in Indonesia for more than three decades. Its August 2026 page about the Indonesian new-energy manufacturing base reports more than 100 specialized service vehicles, support for over 30,000 XCMG equipment units in the country, and a workforce that is nearly 80% local. Those figures describe the company’s Indonesian network, not the remanufacturing center’s staffing, capacity or service commitments. XCMG also says its new-energy manufacturing base began operating in 2026 and its Indonesia R&D center was inaugurated that year. These are company-reported developments, not independent assessments of local performance. XCMG’s project announcement and its page on the Indonesian new-energy base provide this context.

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What has not been disclosed

The project announcements do not state the facility’s investment amount, construction schedule, opening date, processing capacity, component throughput or quantified downtime or cost reductions. They also do not name mining customers or project partners. The groundbreaking confirms the start of the project, not that the facility is open or already providing service.

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