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Giant International Construction Machinery Plant In China Overcapacity Highlight


posted in Business : Non Profit Organizations

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Volvo Construction equipment in China and set up the first technical and customer center

Reporter recently held in Beijing from the Tenth Beijing International Construction Machinery Exhibition and Technology Exchange Conference was informed that our response to international Financial Crisis package has prompted the Chinese construction machinery industry in the world with the industry long before the recovery, the current industry giants have invested factories in China, competition for the Chinese market. Also, because most enterprises have their main products, but also a full range of products, expert analysis of the industry next year after the structural overcapacity will be very conspicuous.

"Construction machinery industry in the current global trend of better recovery in the countries and regions are: China, India, South America and the Middle East, while Japan and Western Europe market demand is only half of the original." According to the China Construction Machinery Industry Association Secretary-General Mao Zhongwen, this year in February the State 4 trillion yuan of investment plans for domestic sales firm in the first quarter, and rise month on month, exports are in September, October in a row, chain growth can be found now China Construction Machinery industry began to usher in revival.

The recovery of China Construction Machinery Industry driven mainly by domestic demand, external demand global market is not encouraging. As of September is still the industry's exports fell more than 40% of export earnings in 2009 less than two percent of total income, while in 2008 this figure is 33%. "It is in this context, such as Caterpillar, Komatsu construction machinery giant world so gradually shift the focus of their production to China, Japan, 70% of the energy has been devoted to China." Maozhong Wen said that foreign companies began to suppress Chinese market, covering high, medium and low grades all.

The Chinese market's recent upward trend, not only foreign companies but also enable domestic enterprises to expand production lines have to seize market share. Guangxi Liugong Machinery Co., Ltd. President Zeng Guang An, revealed in an interview, the domestic construction machinery industry's top six companies, the main products have been extended to the full range of products, "the most worrying is that this one low, low prices into the majority in the industry technology level is not increased. "

China Construction Machinery Industry Association, according to data provided by the domestic construction machinery industry in product variety, the number of excess rate of about 20%, and these excess products are all concentrated in the low-end, high-end products but insufficient. "Forklift, Loader And other 67 products have been serious surpluses machine, large-scale manufacturing machinery and key Parts Less than other high-tech products, which is a structural surplus. "Mao Zhongwen analysis, at the present growth momentum, industry overcapacity, the next two years will become more apparent, he suggested that apart from increasing corporate responsibility, the use of market rules and eliminate backward production capacity, the country of foreign investment should be set up low-end commodity processing power.

Have light security that China's state-owned enterprises is different from the foreign private sector, the backward production can directly cut, Chinese enterprises should take the necessary social responsibility. He advocated use of advantages and disadvantages of business enterprises to merge, not too many ways to ease the new plant overcapacity. And, he Liugong where, for example, that the new industry enterprises in the three principles to be followed, first to enter any industry to conduct an industry first needs analysis; Second, after entering an industry, to carry out technical innovation, product at least To achieve the level of the domestic benchmark, the price is not lower than the national benchmark; Finally, determine the existing capacity can not effectively use the main way to mergers and acquisitions to enter, to prevent waste of resources.

About the Author:

I am China Quality Dress writer, reports some information about tea cup display , thermal travel mugs.

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