Twelfth Five-Year Plan for Construction Machinery Encourage Mergers and Restructuring

The reporter learned on the 26th that the “12th Five-Year Plan” of the construction machinery industry has completed the first round of revisions according to the revised opinions of the Ministry of Industry and Information Technology. It was discussed at the Construction Machinery Industry Association on the 26th and discussed with the Ministry of Industry and Information Technology and the Ministry of Commerce. It is expected that this year will be formally completed in October this year. Promulgated.

The deputy secretary-general of the Construction Machinery Industry Association responsible for drafting the plan, Mao Zhongwen, is also the compiler of five five-year industry development plans for the "7th Five-Year" to "11th Five-Year Plan" of the construction machinery industry. He was interviewed by the reporter of the "Economic Information Daily". Said that the "planning" will encourage the industry to reorganize mergers and acquisitions, use market competition mechanisms to eliminate backwardness, and control the approval of land for low-level duplicate construction projects and engineering construction projects. By the end of the “Twelfth Five-Year Plan”, the sales scale of China's top 100 engineering machinery enterprises should reach over 85% of the entire industry, and strive to cultivate large-scale enterprises with strong competitiveness and innovation ability into aircraft carrier-type international famous companies.

According to Mao Zhongwen, China’s construction machinery sales and sales have now become the world’s largest. From January to July this year, the sales of eight major models increased by 67%, and sales increased by 63%. It is expected that the industry will achieve growth this year. More than 30%, exports are expected to reach 8.5 billion to 9 billion US dollars.

Constraints

Regulatory blank standard is too low

In the numerous corporate mid-year reports just released, the construction machinery industry is undoubtedly the most dazzling segment. The unexpectedly explosive growth of its performance has also surprised industry experts. In fact, the industry has maintained rapid growth since 2006, with an average annual growth rate of 24.7% from 2006 to 2009. Imports in 2005 were US$3.064 billion and exports were US$2.94 billion. From deficit to basically flat, by 2008, import volume rose to US$6.016 billion in double years, doubled; exports rose to 13.422 billion. The dollar, an increase of 356%.

However, Mao Zhongwen told the reporter that although the development momentum is very good, there are still many weak links in the construction machinery industry, and there are multiple domestic and international constraints.

First of all, the most serious problems lie in regulation and standards. Due to the low standards and the lack of supervision, a considerable part of the approximately 3.5 million engineering machinery currently in operation in China is part of this phase-out or scrapped product. Private transactions are serious and tax evasion and other phenomena are common. What is even more shocking is that due to the lack of supervision and the large domestic market demand, a large number of second-hand mobile phones are dumped in China. China has now become the center of the international inferior mobile phone market.

In addition to the international low-quality second-hand mobile phones, many domestic enterprises with agricultural machinery licenses and small-scale simple construction machines are used in industrial projects and are largely removed from construction machinery in Shandong, Jiangsu, and Hebei. They not only have excessively exceeded standards in terms of energy consumption, noise, etc., but also wear the coat of “agricultural construction machinery” to receive state financial subsidies and enjoy sales tax incentives. This not only disrupts the market, runs counter to energy saving and emission reduction, but also buries potential safety hazards. Mao Zhongwen said, “For simple small-scale construction machinery that serves the three rural economy, we must strictly control product quality, safety, environmental protection, and other regulatory standards, and establish a threshold for entry into the market. All used machines should have files, have household registration, and the time for scrapping should be clearly defined. A compulsory elimination system should be established so as to maintain the healthy development of the industry."

Another problem in the construction machinery industry is that key component manufacturing and core technologies severely restrict industry development and industrial transformation. The key components of the current construction machinery are in serious shortage. The key components used in the high-end technology host products are almost entirely imported. “Some of the internationally strong companies either don’t give them or have limited supply due to the consideration of their own industrial safety, and there are price increases. , delayed delivery and other ways to card our neck." Mao Zhongwen said without anxiety. It is understood that intellectual property protection in China's construction machinery industry is very weak today, and open and undisclosed infringements between enterprises have occurred from time to time. The problem of the parts and components industry is even more serious, and almost 90% of the companies are keen to imitate.

In addition, there is a problem of low-level homogeneity and disorderly competition in the construction machinery industry, resulting in excess capacity and low-quality and low-efficiency products circulated in the market.

planning

Double growth in sales scale and product added value

In view of the various problems existing in the construction machinery industry, the main theme of this "12th Five-Year Plan" is to adjust the structure and change the mode of growth. According to the forecast of the domestic market and the development of the international market, the planning of the construction machinery industry in China will reach 900 billion yuan in sales by 2015. The average annual growth rate will be approximately 17%, of which exports will account for about 20 billion US dollars. The largest exporter of international construction machinery. At the same time, further increase the technical value of product sales, of which 20% of the growth rate should be reflected in the increase in product technology added value.

The international construction machinery manufacturing industry is mainly concentrated in four major regions: North America, European Union, Japan, and China. From 2002 to 2009, China’s growth was the strongest and sales increased by 379%, followed by the EU and Japan, which increased by 54.46% and 78%. From the perspective of exports, Japan and the EU are major exporters, but China’s export growth is most prominent. In 2008, exports increased by 17.8 times compared with 2002, accounting for 18% of the international circulation, and have become major exporters of international construction machinery.

From the market demand, the largest demand is China. From 2000 to 2009, China’s market share rose from 7% to 47.71%; Western Europe dropped from 30% to 14.47%; North American market dropped from 36% to 12.37%; Japan The market dropped from 15% to 3.8%. Excluding the financial crisis, it can still be seen that the Chinese market and other emerging markets such as India, Brazil and Russia are becoming the main markets for the development of international construction machinery.

“The market demand for construction machinery and the scale of investment in the entire society are two brothers,” Mao Zhongwen said vividly. “The market demand and investment scale over the years have a regular strained relationship, and the growth in total fixed asset investment in the society during the 12th Five-Year Plan period has increased. The average rate of this rate should be controlled at a level of 20%, and the analysis shows that in 2015 China's market demand for construction machinery will reach 851 billion yuan."

It is reported that the "Planning" will guide the development of construction machinery products to the middle-to-high-end direction, vigorously increase the proportion of independent intellectual property rights, and limit the entry of low-end products to the market through the technical and regulatory standards of environmental emissions, safety, energy consumption, etc. Poor quality products with hidden safety hazards must be strictly supervised, and the proportion of high-end products must reach a certain level during the “Twelfth Five-Year Plan” period.