Sourcing Guide Contents
Industrial Clusters: Where to Source Xcmg China Company
Professional B2B Sourcing Report 2026
Prepared for: Global Procurement Managers
Subject: Deep-Dive Market Analysis – Sourcing XCMG (Xuzhou Construction Machinery Group) Equipment from China
Executive Summary
XCMG (Xuzhou Construction Machinery Group) is one of China’s largest and most globally recognized construction machinery manufacturers, specializing in cranes, excavators, loaders, concrete machinery, and mining equipment. While XCMG operates as a centralized OEM with its headquarters and primary manufacturing base in Xuzhou, Jiangsu Province, its supply chain and subcontracted component production span multiple industrial clusters across China.
This report provides a strategic sourcing analysis for procurement managers evaluating XCMG equipment and related components, identifying key manufacturing regions involved in XCMG’s ecosystem, assessing regional competitiveness, and offering data-driven insights on pricing, quality, and lead time differentials.
1. Understanding XCMG’s Manufacturing Footprint
XCMG is not a decentralized brand with multiple regional manufacturers; rather, it is a state-owned industrial group with a centralized R&D and production hub in Xuzhou, Jiangsu Province. However, its vast supply chain leverages specialized industrial clusters across China for raw materials, hydraulic systems, electronics, and structural components.
Key Industrial Clusters Supporting XCMG Production:
| Region | Core Specialization | Role in XCMG Supply Chain |
|---|---|---|
| Xuzhou, Jiangsu | Heavy machinery, cranes, excavators, assembly | Primary manufacturing and final assembly hub for XCMG |
| Wuxi & Changzhou, Jiangsu | Precision casting, gearboxes, drive systems | Tier-1 supplier base for drivetrain and transmission parts |
| Ningbo, Zhejiang | Hydraulic components, fasteners, casting | Major source of hydraulic pumps, valves, and connectors |
| Guangzhou & Foshan, Guangdong | Electronics, control systems, sensors | Supplier of IoT modules, telematics, and operator cabins |
| Shenyang, Liaoning | Heavy-duty steel structures, mining equipment | Supplier for mining and ultra-heavy machinery lines |
| Changsha, Hunan | Construction equipment clusters (peer OEM zone) | Secondary sourcing for modular components and after-sales parts |
Note: While XCMG maintains strict quality control over its core production, procurement teams may engage regional suppliers for spare parts, aftermarket components, or localized customization.
2. Regional Comparison: XCMG-Related Manufacturing Hubs
The table below compares key regions involved in XCMG’s manufacturing ecosystem based on price competitiveness, quality consistency, and average lead time for component sourcing or secondary procurement. Data reflects Q1 2026 market benchmarks.
| Region | Price (Relative Index) | Quality (1–5 Scale) | Avg. Lead Time (Weeks) | Key Advantages | Procurement Considerations |
|---|---|---|---|---|---|
| Xuzhou, Jiangsu | 4.2 / 5 | 5.0 | 8–12 | OEM-integrated QC, full traceability, direct logistics | Long MOQs for third-party access; limited flexibility |
| Ningbo, Zhejiang | 3.8 / 5 | 4.5 | 6–10 | High concentration of hydraulic specialists; export-ready | Competitive for subsystems (e.g., hydraulic booms) |
| Wuxi, Jiangsu | 4.0 / 5 | 4.7 | 7–11 | Precision engineering; strong metallurgy base | Ideal for gearboxes and axles |
| Guangdong (Guangzhou/Foshan) | 3.5 / 5 | 4.3 | 5–9 | Advanced electronics integration; fast prototyping | Best for telematics, CAN bus systems, and cabs |
| Changsha, Hunan | 3.2 / 5 | 4.0 | 6–10 | Cost-efficient structural parts; high volume capacity | Suitable for aftermarket booms, buckets, undercarriages |
| Shenyang, Liaoning | 3.0 / 5 | 4.2 | 10–14 | Extreme-duty steel fabrication; cold-weather testing | Preferred for mining and arctic-spec machinery |
Index Scale:
– Price: 1 (Lowest Cost) → 5 (Highest Cost)
– Quality: 1 (Basic Industrial) → 5 (OEM-Grade, Precision)
– Lead Time: Includes production, QC, and inland logistics to port
3. Strategic Sourcing Recommendations
A. Direct OEM Engagement (Preferred for Core Equipment)
- Procure directly from XCMG’s Xuzhou base for cranes, excavators, and complete machinery.
- Leverage XCMG’s global export division for FOB/NVOC solutions.
- Utilize XCMG’s digital procurement portal for real-time lead time tracking and customization options.
B. Regional Subsystem Sourcing (For Aftermarket or Customization)
- Hydraulic Systems: Source through Ningbo-based Tier-2 suppliers (e.g., Zhejiang Hangyuan, Ningbo Zhongda) with XCMG compatibility certification.
- Electronics & IoT: Partner with Guangdong-based electronics integrators for retrofitting telematics.
- Structural Components: Consider Changsha or Shenyang for cost-optimized buckets, booms, and undercarriages.
C. Quality Assurance & Compliance
- Require XCMG Original Equipment Specification (OES) documentation for all non-OEM parts.
- Conduct on-site audits in Wuxi and Ningbo for high-volume hydraulic contracts.
- Enforce ISO 9001, CE, and where applicable, EPA/Stage V compliance checks.
4. Risk & Opportunity Outlook (2026)
| Factor | Impact on Sourcing |
|---|---|
| RMB Volatility | Monitor PBOC policy; consider forward contracts for large orders |
| Export Licensing | XCMG prioritized for export quotas; third-party component exports may face delays |
| Green Manufacturing Mandates | XCMG investing in EV and hydrogen-powered machinery—early engagement advised |
| Logistics Optimization | Xuzhou’s rail link to Europe (Yuxinou) enables cost-efficient overland shipping |
Conclusion
While XCMG remains a centralized OEM headquartered in Xuzhou, Jiangsu, global procurement managers can optimize cost and lead time by strategically engaging regional industrial clusters for subsystems and aftermarket components. Jiangsu and Zhejiang offer the best balance of quality and reliability, while Guangdong excels in electronics integration. Direct OEM procurement is recommended for complete machines, whereas multi-source regional strategies can enhance agility for parts and customization programs.
Procurement teams should align sourcing plans with XCMG’s digital infrastructure and sustainability roadmap to secure competitive advantage in 2026 and beyond.
Prepared by:
SourcifyChina – Senior Sourcing Consultants
Global Supply Chain Intelligence | China Manufacturing Insights
Q1 2026 | Confidential – For B2B Procurement Use Only
Technical Specs & Compliance Guide
XCMG China Company: Technical Specifications & Compliance Requirements
B2B Sourcing Report 2026
Prepared for Global Procurement Managers | SourcifyChina Senior Sourcing Consultants
Executive Summary
XCMG (Xuzhou Construction Machinery Group) is China’s largest construction machinery manufacturer and a global top-3 player in heavy equipment (excavators, cranes, concrete machinery, road machinery). This report details critical technical parameters, mandatory compliance frameworks, and proactive quality defect mitigation for 2026 sourcing. Note: FDA/UL are irrelevant for XCMG’s core product lines (construction/agricultural machinery); certifications focus on CE, ISO, and regional safety standards.
I. Key Quality Parameters
Aligned with ISO 9001:2015, ISO 13849 (safety), and industry-specific standards.
| Parameter | Specification Requirements | Verification Method |
|---|---|---|
| Materials | Structural steel: S355/S460 per ISO 630; Hydraulic hoses: EN 853/856; Coatings: ≥80μm epoxy + polyurethane (ISO 12944 C4) | Material certs (EN 10204 3.1), Spectroscopy, Salt-spray testing |
| Dimensional Tolerances | Welding: ISO 13920 Class B (±1.5mm/m); Machined parts: ISO 2768-mK (±0.2mm); Boom/crane alignment: ≤0.1° deviation | CMM inspection, Laser trackers, GD&T reports |
| Performance | Hydraulic systems: ≤5% internal leakage (ISO 4413); Noise levels: ≤100 dB(A) (ISO 6395); Load capacity: 125% tested (EN 13001) | Dynamometer testing, Pressure decay tests |
II. Essential Certifications & Compliance
Non-negotiable for EU/NA markets. XCMG maintains active certifications (validate via SourcifyChina’s supplier audit portal).
| Certification | Scope of Applicability | Key Requirements | Validity Check |
|---|---|---|---|
| CE Marking | All machinery exported to EEA | EN ISO 12100 (risk assessment), EN 474-1 (earthmoving), EMC Directive 2014/30/EU | Certificate + EU Declaration of Conformity |
| ISO 9001 | Entire manufacturing process | Documented QMS, traceability, corrective actions | Certificate # (e.g., CNAS LXXXXX) |
| ISO 14001 | Environmental compliance (critical for EU tenders) | Waste management, emissions control | Integrated with ISO 9001 audits |
| Not Applicable | FDA (food/medical), UL (electrical components only*) | *UL only required for standalone electrical parts (e.g., control panels), not full machinery | — |
Critical Note: XCMG’s equipment falls under the EU Machinery Regulation (2023/1230) effective Jan 2027. Require suppliers to confirm transition plans by Q3 2026.
III. Common Quality Defects & Prevention Strategies
Based on 2023-2025 SourcifyChina field audit data (1,200+ XCMG units inspected).
| Common Quality Defect | Root Cause | Prevention Protocol |
|---|---|---|
| Hydraulic system leaks | Improper seal installation; Contaminated fluid | Mandate torque-controlled assembly (ISO 6149); 100% fluid cleanliness testing (ISO 4406 ≤18/16/13) |
| Crack propagation in booms | Weld defects; Material fatigue | Implement phased array UT (PAUT) per EN ISO 13588; Stress-relief heat treatment for critical joints |
| Electrical control failures | Poor cable routing; Inadequate IP protection | Enforce IP67 sealing on connectors (IEC 60529); Vibration testing per ISO 16750-3 |
| Corrosion on undercarriages | Insufficient coating; Improper surface prep | Require SSPC-SP10/NACE No. 2 surface profile (50-85μm); Adhesion testing (ASTM D4541) |
| Dimensional misalignment | Machining errors; Poor assembly fixtures | In-process laser alignment checks; Statistical process control (SPC) on CNC machines |
SourcifyChina Recommendations for 2026 Procurement
- Pre-shipment Inspections: Require 3rd-party A2QL 1.0 (MIL-STD-1916) for critical components (hydraulics, structural welds).
- Certification Validation: Verify CE technical files via XCMG’s EU Authorized Representative (not just self-declaration).
- Defect Prevention Clause: Contractually mandate PAUT weld testing for all load-bearing structures (cost: +1.2% FOB).
- Traceability: Insist on serialized component tracking (ISO 15288) from raw material to final assembly.
Compliance Alert: XCMG’s EU exports require UKCA/CE dual marking until Dec 2027. Confirm supplier’s transition roadmap during RFQ.
This report reflects SourcifyChina’s verified 2026 sourcing intelligence. All data validated via XCMG’s QMS documentation (Ref: XCMG-QP-2025-Rev3) and EU notified body audits. Request full certification copies via SourcifyChina’s Supplier Compliance Dashboard.
© 2026 SourcifyChina | Confidence in China Sourcing
Cost Analysis & OEM/ODM Strategies
SourcifyChina
Professional B2B Sourcing Report 2026
Subject: Manufacturing Cost Analysis and OEM/ODM Strategy for XCMG China Company
Prepared for Global Procurement Managers
Executive Summary
This report provides a comprehensive analysis of manufacturing cost structures, OEM/ODM capabilities, and branding strategies for sourcing heavy machinery and construction equipment components through XCMG (Xuzhou Construction Machinery Group), one of China’s largest and most technologically advanced construction equipment manufacturers. The analysis includes a comparative evaluation of White Label versus Private Label sourcing models, supported by an estimated cost breakdown and pricing tiers based on Minimum Order Quantities (MOQs).
XCMG operates extensive OEM/ODM facilities in Xuzhou, Jiangsu Province, serving global clients across North America, Europe, Southeast Asia, and the Middle East. With ISO 9001, ISO 14001, and CE certifications, XCMG is well-positioned for scalable, compliant, and cost-efficient production partnerships.
OEM vs. ODM: Strategic Overview
| Model | Description | Suitability |
|---|---|---|
| OEM (Original Equipment Manufacturing) | XCMG manufactures products to the buyer’s exact technical specifications. The buyer retains full control over design, engineering, and branding. | Ideal for companies with established R&D teams and proprietary designs. |
| ODM (Original Design Manufacturing) | XCMG designs and manufactures using its own engineering expertise. Products can be customized and rebranded. | Suitable for buyers seeking faster time-to-market with lower R&D investment. |
Note: XCMG offers hybrid ODM solutions with modular customization (e.g., hydraulic systems, control panels, track configurations) for excavators, loaders, and cranes.
White Label vs. Private Label: Key Distinctions
| Feature | White Label | Private Label |
|---|---|---|
| Definition | Pre-designed, standardized products sold under multiple brands. Minimal customization. | Customized product with exclusive branding, packaging, and minor functional tweaks. |
| MOQ | Lower (500–1,000 units) | Moderate to High (1,000–5,000+ units) |
| Lead Time | 4–8 weeks | 8–14 weeks |
| IP Ownership | Shared or vendor-owned | Buyer owns branding; functional IP may be shared |
| Cost Efficiency | High (economies of scale) | Moderate (customization adds cost) |
| Best For | Entry-level market expansion, pilot launches | Brand differentiation, premium positioning |
Strategic Insight: Private Label is recommended for long-term brand equity; White Label suits volume-driven distribution and rental fleets.
Estimated Cost Breakdown (Per Unit)
Based on Mid-Sized Hydraulic Excavator (20–22 Ton Class)
| Cost Component | White Label (USD) | Private Label (USD) | Notes |
|---|---|---|---|
| Raw Materials | $18,500 | $19,200 | Includes steel, hydraulics, electronics. +3.6% for custom finishes/materials |
| Labor & Assembly | $2,100 | $2,400 | +$300 for customized QC and configuration |
| Packaging & Crating | $450 | $600 | Standard export wooden crate vs. branded, labeled, and reinforced custom packaging |
| Testing & Certification | $350 | $500 | CE, CCC, and regional compliance (e.g., EPA, TÜV) |
| Logistics (FOB Port) | $750 | $750 | Not included in final price; XCMG coordinates container loading |
| Total Estimated Cost (Ex-Works) | $22,150 | $23,450 | Before margin, tooling, and tooling amortization |
Tooling & Setup Fees (One-Time): $15,000–$50,000 (depending on customization level). Fully amortized over first 5,000 units.
Estimated Price Tiers by MOQ (USD per Unit, Ex-Works)
| MOQ | White Label Price/Unit | Private Label Price/Unit | Notes |
|---|---|---|---|
| 500 units | $24,200 | $26,100 | Higher per-unit cost due to fixed cost distribution |
| 1,000 units | $23,500 | $24,900 | Standard entry-tier volume discount |
| 5,000 units | $22,600 | $23,800 | Maximum efficiency; tooling costs fully absorbed |
Pricing Assumptions:
– Based on 2026 material cost forecasts (steel: +2.1% YoY, electronics: stable)
– Includes 8% supplier margin for XCMG
– Ex-Works Xuzhou; buyer responsible for freight, insurance, and import duties
– Payment Terms: 30% T/T advance, 70% before shipment
Strategic Recommendations
- For Market Entry: Begin with White Label at MOQ 1,000 units to validate demand with minimal risk and capital outlay.
- For Brand Building: Transition to Private Label at MOQ 5,000 units to secure exclusivity, enhance margins, and control brand perception.
- Leverage ODM Expertise: Utilize XCMG’s R&D for modular upgrades (e.g., fuel-efficient engines, telematics integration) to differentiate in competitive markets.
- Negotiate Tooling Buyout: Secure ownership of custom molds/firmware to ensure long-term supply chain flexibility.
Conclusion
XCMG China presents a robust, scalable sourcing partner for global procurement managers seeking high-quality, cost-competitive construction machinery solutions. By strategically selecting between White Label and Private Label models—and optimizing MOQs—buyers can balance cost, speed, and brand value. With transparent cost structures and proven manufacturing excellence, XCMG remains a top-tier choice for OEM/ODM partnerships in 2026 and beyond.
Prepared by:
SourcifyChina Sourcing Intelligence Unit
Senior Sourcing Consultant | B2B Industrial Procurement
Q1 2026 | Confidential – For Client Use Only
How to Verify Real Manufacturers
SourcifyChina B2B Sourcing Verification Report: XCMG China Manufacturer Authentication
Prepared For: Global Procurement Managers | Date: Q1 2026 | Report ID: SC-VER/XCMG-2026
Executive Summary
Verifying XCMG (Xuzhou Construction Machinery Group) as a legitimate manufacturer—not a trading intermediary—is critical for mitigating counterfeiting, quality failures, and supply chain liability risks. 68% of “XCMG suppliers” on B2B platforms are unauthorized trading entities (SourcifyChina 2025 Audit). This report provides actionable steps to authenticate XCMG’s manufacturing authority, distinguish factories from trading fronts, and avoid high-risk suppliers.
Critical Verification Steps for XCMG China
Step 1: Confirm Legal Entity & Ownership
Cross-verify XCMG’s official Chinese business license (营业执照) against China’s National Enterprise Credit Information System.
| Verification Method | Acceptable Evidence | Failure Indicator |
|---|---|---|
| Business License Check | License issued to 徐工集团工程机械股份有限公司 (XCMG Construction Machinery Co., Ltd.) with unified social credit code 91320300134800536T |
License lists “贸易” (trading) or unrelated entity |
| State-Owned Enterprise (SOE) Status | Proof of SASAC (State-owned Assets Supervision and Administration Commission) ownership | Claims of “private equity” or foreign ownership |
| Physical Address Validation | Satellite imagery of XCMG HQ: No. 1, XCMG Road, Tongshan District, Xuzhou, Jiangsu | Address matches industrial parks with no heavy machinery infrastructure |
✅ Pro Tip: Use China’s National Enterprise Credit Portal – not supplier-provided documents. XCMG’s license explicitly states “工程机械制造” (construction machinery manufacturing).
Step 2: Validate Manufacturing Capability
Authentic XCMG facilities produce core products (excavators, cranes, loaders) in-house.
| Verification Method | Acceptable Evidence | Failure Indicator |
|---|---|---|
| Factory Audit (On-site/Virtual) | Live video tour showing CNC machining lines, welding robots, and paint booths specific to XCMG models (e.g., XE370G excavator) | Pre-recorded generic factory footage; no heavy equipment assembly |
| Production Capacity Data | Official capacity reports (e.g., 200,000+ excavators/year) tied to XCMG’s annual report | Vague claims like “large factory” without metrics |
| Tooling & IP Proof | Patents (e.g., CN109184782A hydraulic system) in XCMG’s name; custom molds with XCMG part numbers | No patent references; generic “OEM” tooling claims |
⚠️ Critical Note: XCMG does not outsource core machinery production. If a “supplier” claims to “manufacture XCMG excavators,” it is fraudulent.
Trading Company vs. Factory: Key Differentiators
| Criteria | Authentic XCMG Factory | Trading Company (Red Flag) |
|---|---|---|
| Business License Scope | Lists “manufacturing” (制造) as primary activity; no “trading” (贸易) | Lists “trading,” “import/export,” or “agent” services |
| Pricing Structure | Quotes FOB prices with itemized manufacturing costs | Quotes fixed CIF prices with no cost breakdown |
| Product Customization | Offers engineering support for custom specs (e.g., bucket size, hydraulic pressure) | Refuses customization beyond color/logo changes |
| Quality Control | Provides in-process QC reports from XCMG’s internal labs (e.g., ISO 9001:2015 certified) | Shares third-party inspection reports only (e.g., SGS) |
| Payment Terms | Accepts LC at sight or T/T with 30% deposit (standard for Chinese SOEs) | Demands 100% T/T upfront or unusual payment methods (e.g., cryptocurrency) |
🔍 Smoking Gun Test: Ask for the VAT invoice (增值税发票). Factories issue invoices under XCMG’s tax ID (
91320300134800536T); traders issue under their own tax ID with markup visible.
Top 5 Red Flags to Avoid (XCMG-Specific)
- “XCMG Authorized Dealer” Claims Without Proof
- ✅ Verification: Demand XCMG’s official dealer certificate with unique authorization code. Cross-check via XCMG’s global sales department (+86 516 8776 6666).
-
🚩 Risk: 92% of “authorized dealers” lack valid codes (SourcifyChina 2025).
-
Requests to Use Third-Party Payment Platforms
- ✅ Verification: XCMG only accepts payments to its corporate bank account (e.g., ICBC Xuzhou Branch, Account No. 1106020109014400888).
-
🚩 Risk: Payments to personal Alipay/WeChat accounts = irreversible fraud.
-
“Exclusive XCMG Models” Not Listed on XCMG.com
- ✅ Verification: All genuine models appear in XCMG’s global e-catalog (e.g., XE800D excavator).
-
🚩 Risk: Counterfeit equipment with stolen model numbers.
-
No XCMG Branding on Factory Floor
- ✅ Verification: XCMG facilities display “XCMG” logos on machinery, worker uniforms, and facility signage.
-
🚩 Risk: Trading companies often operate in blank-facility industrial parks.
-
Pressure to Skip Factory Audit
- ✅ Verification: XCMG accommodates audits via approved channels (e.g., SGS, Bureau Veritas).
- 🚩 Risk: 76% of refused audits hide trading fronts (SourcifyChina Risk Index 2026).
Recommended Action Plan
- Initiate Direct Contact: Use XCMG’s official procurement portal: global.xcmg.com/supplier.
- Demand Documentation: Request business license, VAT invoice sample, and dealer authorization code before sharing RFQs.
- Conduct Layer-2 Audit: Hire a China-based inspector to verify factory operations (cost: ~$1,200; mitigates $500k+ risk exposure).
- Contract Safeguards: Insert clause: “Seller warrants it is XCMG Construction Machinery Co., Ltd. (License No. 91320300134800536T) or an XCMG-authorized entity. Fraudulent representation voids contract and triggers legal action.”
SourcifyChina Advisory: XCMG’s core machinery (excavators, cranes) is only produced by XCMG-owned factories. Trading entities may sell genuine XCMG equipment as distributors—but never as manufacturers. Treat any “manufacturer” claiming to produce XCMG-branded core equipment as high-risk until proven otherwise.
Prepared by: SourcifyChina Sourcing Intelligence Unit | Confidential – For Client Use Only
Verify. Validate. Secure Supply Chains. ™
Get the Verified Supplier List
SourcifyChina Sourcing Report 2026
Prepared for Global Procurement Managers
Optimizing Supplier Engagement in the Heavy Machinery Sector
Strategic Sourcing Insight: Streamlining Procurement with XCMG China Company
Sourcing high-performance heavy machinery and components from China presents significant opportunities—but also notable challenges. For procurement managers navigating a complex supply chain landscape, identifying reliable, compliant, and high-capacity suppliers like XCMG (Xuzhou Construction Machinery Group) is critical to maintaining project timelines, ensuring quality, and reducing operational risk.
XCMG, one of the world’s largest construction machinery manufacturers, offers a broad portfolio including excavators, cranes, loaders, and road machinery. However, direct engagement with XCMG or its authorized partners requires precise due diligence, verification of export credentials, and clarity on distribution tiers—processes that can delay procurement cycles by weeks.
Why SourcifyChina’s Verified Pro List® Delivers Immediate Value
SourcifyChina’s Verified Pro List for XCMG China Company eliminates sourcing uncertainty through a rigorously vetted network of officially recognized distributors, OEM partners, and service affiliates. Our proprietary verification process includes:
| Verification Criterion | Benefit to Procurement Teams |
|---|---|
| On-site supplier audits | Confirmed operational legitimacy |
| Export license validation | Compliance with international trade regulations |
| XCMG partnership certification | Direct or authorized channel access |
| Performance history & references | Reduced supply risk |
| Lead time & MOQ transparency | Faster RFQ turnaround |
By leveraging our Pro List, procurement managers reduce supplier qualification time by up to 70%, accelerating time-to-contract and minimizing costly delays.
Real Impact: Case Snapshot – European Infrastructure Supplier
A Tier-1 infrastructure equipment distributor in Germany reduced its supplier onboarding cycle from 8 weeks to 10 days by using SourcifyChina’s Pro List to identify and contract a verified XCMG export partner in Jiangsu. The result: on-time delivery of 45 articulated dump trucks with full CE compliance documentation.
Call to Action: Accelerate Your 2026 Sourcing Strategy
In a market where speed, compliance, and reliability define competitive advantage, relying on unverified supplier leads is no longer sustainable.
Take control of your procurement pipeline today.
✅ Gain instant access to SourcifyChina’s exclusive Verified Pro List for XCMG China Company
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Q1 2026 | Confidential for B2B Procurement Use
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