Originally, SIEG was a joint venture between a Shanghai company and a German company Interkrenn.
When the JV stopped, SIEG adoped the idea of the generic corporations such as CMEC, which usually is a short form for 'China Machinery Imports & Exports Corporation'. CMEC normally followed by the name of the city or province it was in, as a company name. So back then, in SIEGs case, they would say that SIEG is a short form for ''Shanghai Imports & Exports Group' depending on who asked, because CMEC or CMC were and to a certain extent still are financially and politically powerful, most powerful of which was/is the Beijing branch, parent which owned ALL Chinese engineering based factories pre-privatization. Post privatization, CMEC/CMC Beijing are still silent partners with limited share holding in most such companies which were born pre-privatization. This relationship is a little complicated to explain.
Most international buyers in the late 1980's and early 1990's were used to the idea and meaning of CMC/CMEC/SMEC as abbreviations which they could understand when buying. It would be easier for purpose of communication, rather than saying that the factory which produces these machines is called Shanghai Zhonjing (SZ – but I cant remember the full name)…, which is part of a bigger group of companies under the SIEG umbrella.
Post privatization, some people at SIEG started to use the posher idea to suggest SIEG to be a short form for 'Shanghai International Equipment Group'.
In the early 2000s, the concept of branding was born…. Initially, Frank Hoose (FH) kept on saying SIEG in his YT videos. ARC presented the idea for this factory to promote and build their relationship further with Frank, and start using/adopting promoting the word 'SIEG' as a brand. Until then, the factory kept saying that we are factory SZ under the SIEG group, and that they will be happy to put any 'logo'/'branding on their machines as they were already doing with Harbor Freight and Clarke machines.
ARC was interested in promoting the machines as products made by 'SIEG' under a 'SIEG' brand. As FH was already popular in directly promoting the factory by the early 2000s, it made sense for the factory to start using new marketing strategies to stand on its own name.
The factory does own a foundry under the group. The main castings are produced in-house, at a different location well away from Shanghai. Non-critical castings out-sourced. To comply with government requirements, they are not permitted to have a foundry at the location where the machines are built.
Ketan at ARC.
edits for poor spelling.. sorry.
Edited By Ketan Swali on 23/01/2021 16:13:52
Edited By Ketan Swali on 23/01/2021 16:15:32
Edited By Ketan Swali on 23/01/2021 16:17:07