The Latest Development of Construction Machinery Industry in China in 2012

China's machinery industry in 2011 out of an extraordinary development path. The industry-wide development model has been transformed into the center, with restructuring, innovation, and upgrading as the main lines. The sales revenue of the country's 20 major categories of construction machinery products has exceeded 500 billion yuan, an increase of over 17% year-on-year. At present, not only the total number of production and sales in the industry ranks first in the world, but also meets nearly 90% of the market demand in China. Now that half of 2012 is over, in this season of speculation, China’s construction machinery companies will continue to carry out scientific and technological innovation, actively develop high-end equipment, increase the implementation of internationalization strategies, and develop all-round, refined and special small and medium-sized businesses. The company is endowed with internal forces and continues to promote the development of the entire industry.

Steady Growth in 2011 In 2011, the sales revenue of the top 50 companies in the construction machinery industry in China accounted for 86% of the total industry. In the 2011 annual ranking of the world's top 50 engineering machinery manufacturers, Xugong, Zoomlion, Sanyi, Liugong and other 11 companies are on the list, among which Xugong, Zoomlion, and Sanyi are the three aircraft carriers. "The company's annual sales exceeded 80 billion yuan. In addition, 12 enterprises including foreign investors in China have exceeded 10 billion yuan in sales revenue.

New breakthroughs in scientific and technological progress In 2011, China’s construction machinery industry’s corporate investment in science and technology continued to grow, and scientific research strength continued to increase. Xugong Group Jiangsu Xuzhou Construction Machinery Research Institute strives to build a world-class engineering machinery technology research and development institution; Zoomlion’s National Concrete Machinery Engineering Technology Research Center made new progress in scientific and technological innovation; Liugong was approved by the Ministry of Science and Technology as our country. The only "National Engineering Research Center for Earth-moving Machinery Industry" represents the first-class level of technology research and development and achievement transformation in China's earth-moving machinery industry.

In 2011, the National Machinery Industry Science and Technology Progress Award received a total of 24 engineering machinery products and technologies. High-end equipment featuring high quality and high technology emerges in an endless stream, and major equipment and technology have made new breakthroughs. 2000-ton, 3000-ton crawler cranes, 800-ton, 1200 all-terrain cranes, and 12-ton loaders are available. At the same time, breakthroughs were made in the application of new technologies and new materials. Following the launch of Zoomlion's 80m carbon fiber boom pump truck, the Sany Heavy Industry 62m pump truck was settled in Dalian.

Rapid export growth According to customs statistics, in 2011, the export of construction machinery in the country reached 15 billion U.S. dollars, an increase of more than 50% year-on-year, exceeding the highest level in 2008. Among them, Xugong’s performance is particularly prominent. Last year, the export value exceeded US$1 billion, and only Venezuela’s contracted orders reached US$740 million, setting a new record for China’s construction machinery industry’s export orders.

Enterprises with stronger competitiveness continue to expand their product exports, and conduct international operations in the form of overseas mergers and acquisitions, technology exports, and development of overseas joint ventures. The large-scale backbone enterprises represented by XCMG, Zoomlion, Sanyi and Liugong continue to invest in Europe, South America and Eastern Europe to establish wholly-owned and joint ventures. XCMG invests in Brazil, India and other places. Zoomlion’s bulk export to Iran, Trinity Germany’s base completion, and 62m pump truck emergency export support to Japan can be referred to as the highlights of the 2011 global service of China’s construction machinery companies. .

In the past year, the optimization of industrial structure, due to the long-term interest of related companies in the market for construction machinery, investment and restructuring have not diminished. Xugong Group invested in Lingang production and manufacturing base project, and laid the foundation for Xugong Concrete Construction Machinery Industry Base; Sany Heavy Machinery produced 80,000 excavator projects; Liugong acquired 42% equity of Shougang CNPC and cooperated with Shougang Mining to enter mining machinery; The completion of the Wuhan Industrial Park for the push of concrete machinery and the foundation stone for the Shanhe Intelligent Equipment Group Shanhe Industrial City. In addition, Caterpillar, Komatsu, Hitachi Construction Machinery, Terex, etc. continue to increase investment and distribution in China.

From an industrial structure point of view, parts and components companies have focused on the needs of the host companies and increased investment. The new plant of Jiangsu Hengli High Pressure Cylinder Co., Ltd. was put into production, the new factory of Kawasaki Precision Machinery (Suzhou) Co., Ltd. was opened, and the new hydraulic industrial base in Yuci was started. In addition, the inspection and inspection centers for construction machinery products, related agents, and after-sale maintenance service companies also increased investment and integration in accordance with market demand in different degrees, and optimized the development of the upstream, middle, and downstream industrial chains.

The field of accessories is valued. XCMG, Zoomlion, SANY, and other host companies not only met the market demand for four-wheel drive, hydraulic cylinders, new gearboxes, and slewing bearings in the development of core components, but also passed companies in Germany, the United States, and South Korea. The cooperation has made breakthroughs in the development of high-end components such as engines, multi-way valves and hydraulic pumps. The rapid development of a number of emerging parts and accessories manufacturing companies represented by Shantui Machinery, Jiangsu Hengli, and Fangyuan Bearing.

Estimated growth of 12% in 2012

Considering that the adjustment of the country’s macroeconomic policies emphasizes structurality, flexibility, and forward-lookingness, the China Construction Machinery Industry Association predicts that the industry sales trend in 2012 will show a trend of low-end and high-end. The annual sales revenue will grow steadily, which is more than the expected growth in 2011. About 12%.

Continuing to carry out scientific and technological innovation work In 2012, Xugong, Zoomlion, Sanyi, Liugong and many other companies and related research institutes will increase investment and actively carry out energy-saving, environmental protection, and intelligent technology research. Strive to complete the lightweight design of more than 10 kinds of products, and create a demonstration effect; carry out new multi-system optimization matching research of power, hydraulic, hydraulic and intelligent control, and research on remanufacturing technology of construction machinery based on new materials and surface engineering technology, etc. . Through product structure optimization and lightweight design, transform the traditional manufacturing process, increase the scale of specialization, gradually realize the saving of 5% of the materials, reduce the energy consumption by 15%, and the emission of most of the products from the country's two transitional country standards, including noise, vibration, etc. The indicators have reached the relevant national standards and have achieved the goal of basically no pollution in the production process.

It is worth mentioning that Zoomlion's carbon fiber technology may be widely used in the construction machinery industry in 2012, which will provide a new technological development idea for the future development of the industry. Xugong Group will continue to develop high-end cranes, crawler cranes, loaders and other products this year to break the global monopoly of foreign companies. With the Tianjin Institute of Construction Machinery as its core, SINOMACH started to build a high-tech R&D center, and conducted a comprehensive research on basic technology, common technology research, and high-end application technology of engineering machinery.

The pillar companies of major industries pay great attention to the construction of innovation systems. Shantui plans to invest 250 million yuan to establish Shantui Research and Development Center, covering an area of ​​230 acres. The center will integrate design center, complete machine test and analysis center, experiment center, new product trial center, personnel training and information resource center "five centers" into one, and will build a world-class comprehensive research and development platform for construction machinery.

Actively develop high-end equipment In 2012, we will focus on the development of a single wheeled crane with a value of more than 1 million yuan, a large crawler crane, and an extremely large tower crane for major national construction projects, striving to achieve a localization rate of more than 65%. This year, XCMG will speed up the development of high-end products such as earth-rock machinery, concrete machinery and heavy trucks; Liugong has newly developed large-scale mine dump trucks for use by users after entering Shougang Mining; Liugong also introduced E-Series excavators and energy-saving and environmentally friendly loading. Machines; Yutong Heavy Industries develops military equipment. These all reflect that the independent innovation capability of Chinese construction machinery companies will continue to increase. It is expected that some local brands will enter high-end manufacturing fields such as marine engineering equipment and shield equipment this year.

To develop specialized, professional and special small and medium-sized enterprises in 2012, according to the current production concentration and economies of scale development, through the integration of global capital markets, the industry will build a comprehensive corporate finance and bank-enterprise cooperation business platform, will produce more than 3 The group of companies with sales of 100 billion yuan and 15 enterprises with 10 billion yuan or more. At the same time, we will create a group of small and medium-sized enterprises with specialization, refinement, specialness and growth. In 2012, the construction machinery industry will have a group of small and medium-sized enterprises that thrive in places like Shandong, Jiangsu, Hunan, and Fujian with their technical advantages and characteristics.

Intensifying the implementation of the internationalization strategy XCMG will step up the construction of the XCMG European R&D center based on the acquisition of two European companies. The Xugong Brazil plant and engineering technology center with a total investment of 200 million euros is also accelerating construction. At the same time, XCMG will implement the bases in Indonesia, South Africa, Eastern Europe, and India, and plan to build 200 overseas spare parts outlets. Zoomlion will set up a US R&D center in 2012. The Construction Machinery Association expects that China's construction machinery exports will continue to grow rapidly in 2012.

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