The construction machinery policy continues to improve

With the implementation of the country’s 4 trillion yuan investment plan and the adjustment and revitalization of the equipment manufacturing industry, major projects and projects have been started and advanced in succession, and the construction machinery industry has shown a clear trend of recovery.
The semi-annual report of the listed company of construction machinery shows that the second-quarter performance of each company has increased by a larger month, and the overall prosperity of the industry continues to rise, and the performance is generally higher than expected.
In the second quarter, the growth rate of the second quarter was larger than that of the first quarter. The semi-annual report showed that the net profit of most companies in the second quarter increased by more than 100% from the first quarter, indicating that the operating conditions of construction machinery companies gradually recovered.
The significant increase in the second quarter quarter-on-quarter was a notable feature of the semi-annual report of construction machinery enterprises this year. Benefited from the recovery of the domestic machinery industry in the second quarter, the construction machinery industry realized a net profit growth of 135%.
Zoomlion semi-annual report shows that the second quarter net profit of 784 million yuan, an increase of 160.47% over the first quarter net profit; Sany Heavy Industry achieved a net profit of 236 million yuan in the first quarter of this year, while the second quarter of a quarter to achieve a net profit 565 million yuan, a year-on-year increase of 135.59%. In recent years, Anhui Heli, whose performance has been declining for some time, has experienced a net profit increase of 238% from the first quarter. The data shows that although not all companies are profitable in the first half of the year, compared with the first quarter, the business situation is gradually improving.
Among listed engineering machinery companies, Xugong Technology is the company with the largest increase in net profit. The semi-annual report shows that the company's operating income was 1.946 billion yuan, a slight decrease from the same period of last year; operating profit was 1.026 million yuan, a decrease of 94.68% compared with 19.295 million yuan in the same period of last year; but the net profit attributable to the parent company was 13.30 million yuan. In the same period of last year, it was 1.0897 million yuan, an increase of 1122.83%.
"The reason why Xugong Technology's net profit increased by more than 10 times year-on-year was because XCMG Technology actively promoted the sales of new products in the first half of the year and improved the overall profitability of the company's products. The gross profit rate increased by 5.21 percentage points over the same period of last year, increasing profits by 93.45 million yuan. However, the more important factor is policy support,” said an industry insider.
XCMG Technology was identified as a high-tech enterprise in October last year. This policy made Xugong Technology's income tax rate lower by 10% compared with the same period of last year, and the income tax expense was reduced by 18.68 million yuan compared with the same period of last year.
The industry believes that this reflects the country's strong policy support for high-tech companies. The support given to companies that are capable of leading the development of the industry and achieving technological breakthroughs in certain areas is visible and tangible.
Domestic and foreign demand drives the growth of the industry. Large-scale investment plans have obvious pulling effect. The construction machinery industry has a strong domestic demand. The international financial crisis has given birth to opportunities for the development of advantageous companies.
Due to the impact of the international financial crisis, since the fourth quarter of last year, the performance growth of listed companies in construction machinery has mainly come from the domestic market.
“From the perspective of the entire industry, construction machinery began to pick up in March, and the decline in the production and sales of construction machinery from January to June was gradually narrowing, and some construction machinery increased year-on-year,” said Zhou Fengwu, an analyst at Orient Securities Machinery.
Analysing the reasons, Zhou Fengwu believes that large-scale high-speed railway construction projects have directly driven the development of piling machinery, concrete machinery, and truck cranes in light of the investment in infrastructure and fixed assets. The introduction of the national plan for wind power, nuclear power and solar power generation has been substantially increased, and will continue to stimulate the growth of market demand for construction cranes.
The increase in demand directly drives the growth of the company's main business. Among the listed companies in the construction machinery industry, there are 4 main business revenues in the first half of the year. Among them, ST Construction Machinery (Shaan Jian) ​​and Zoomlion increased by 109.9% and 49.08% respectively year-on-year. According to the Deputy Secretary-General of China Construction Machinery Industry Association Road and Compaction Machinery Sub-Counsel Zhang Zehua, the loss of ST Construction Machinery was mainly due to the rapid growth of steel structure business revenue in recent years, becoming the company's profit growth point.
In addition, since February of this year, the real estate market gradually picks up, driven by real estate investment, the demand for construction machinery industry has grown significantly. The data shows that since the beginning of this year, the amount of new construction land in 81 cities has increased by 16.7% year-on-year, including 25265.69 hectares of new construction land. This will further increase the demand for construction machinery, and the industry growth will exceed market expectations.
At the same time, the rebound in external demand is expected to add luster to the performance of the dominant companies. Mao Zhongwen, deputy secretary-general of the China Construction Machinery Industry Association, pointed out that although exports have not yet fully recovered in the first half of this year, adjustments in the market structure, upgrading of products, and mergers and acquisitions of the industry are all providing development opportunities for advantageous companies to emerge.
After years of development, China’s construction machinery has gradually developed into an internationalized industry. Its export volume has been continuously rising. Last year, the export volume accounted for 33% of the industry’s total sales. The total import and export trade amounted to 19.44 billion US dollars and the dependence on foreign trade reached 47.88. %. According to the data, the export volume of construction machinery in the first half of this year was a drop of 38% year-on-year, but from the data for the month of June, the rebound in exports is an indisputable fact. Among them, the export volume of excavators in June increased by 82% from the previous month, bulldozers increased by 25% from the previous month, and the export volume in each month reached a new high during the year.
Mao Zhongwen believes that China's construction machinery products have obvious advantages in cost-effectiveness. Although orders have fallen, some new users of multinational companies have begun to turn to China's products. Once the international market improves, the number of domestic customers will increase. At the same time, the competition in the domestic market is also conducive to the development of the industry and the survival of the fittest. It is conducive to the adjustment of product structure and industrial structure. Products with high efficiency, energy saving, and environmental protection will be welcomed by the market.
The intensive management and policies helped the development of the semi-annual report. Compared with the positive external expansion of last year, the listed companies of engineering machinery appeared more rational in the first half of the year.
At this time last year, there were no shortages of words such as mergers and acquisitions and the opening of new plants in the news released by listed companies of construction machinery. In the first half of this year, there was less news about the outward expansion of enterprises, which was replaced by internal changes in the companies within the listed companies or within their respective groups.
Analysing the performance of the first half of the year and developing new products to cultivate new growth points have become the same choice for companies. On July 23 this year, Xugong Heavy's 3 aerial work platforms unveiled the second “International Shipbuilding Industry Exhibition” at the Shanghai World Trade Center. Xugong used this as a starting point to enter the shipbuilding machinery industry monopolized by foreign brands. On the other hand, the trinity advances to the new energy field. In mid-August, Sanyue Group’s total investment of 8 billion yuan was officially launched. According to the plan, the project covers an area of ​​500 acres, the first phase of the project will form an annual production capacity of 300,000 kilowatts in the year after the start of the project; in 2010, the further expansion of production capacity will result in the formation of 500,000 kilowatts of supporting production capacity and a sales income of more than 3 billion yuan; In the 5th year after the start of construction, a production capacity of 10 billion yuan will be formed.
In addition, there are two listed companies in the first half of the year that have promoted the development of enterprises through the issuance of new business --- Xugong Technology and Zoomlion.
On February 27, the conditions of the China Securities Regulatory Commission approved Xugong Technology’s non-public offering of shares to purchase assets and related transactions, and the overall listing of Xugong Machinery was basically completed. After the supplementary materials and approval documents were obtained, the relevant procedures for the transfer of equity and assets, etc., were proceeded according to the plan. The company's name was changed from Xugong Technology to Xugong Machinery. After the overall listing, the larger proportion of the main revenue will be the construction crane business.
On April 21, Zoomlion announced that it plans to issue no more than 300 million shares in non-public offerings, raising no more than 5.572 billion yuan, and investing in the industrialization of large-tonnage cranes, the global financial leasing system, the remanufacturing center for construction machinery, and the society. The 11 major projects such as the industrialization of key equipments of the emergency rescue system were approved by the shareholders' meeting on August 18. Zhan Chunxin, chairman of Zoomlion, said that after the project reaches production, it can generate revenue of 17 billion yuan, equivalent to recreating a Zoomlion.
In addition, in the first half of this year, Sany Heavy Industry excavators have performed outstandingly in the market. The company plans to inject this high-quality asset business into listed companies, which will also be a change from the internal management mode of the group to intensification.
At the policy level, the construction machinery industry is very popular. First, the country introduced a 4 trillion yuan investment plan, followed by equipment manufacturing industry adjustment and revitalization plan has also rapidly stepped on stage, successively two documents, "the development of the construction machinery industry". “In the first half of this year, the Outline of the Three-year Revitalization of Construction Machinery Manufacturing Industry has been issued. We believe that through this three-year revitalization planning point of the construction machinery manufacturing industry, construction machinery companies will gain a clearer understanding of the revitalization plan. It is also conducive to faster development." Mao Zhongwen said.
Subdivided leading enterprises steer the industry steadily. Liugong and other sub-leading enterprises used the opportunity to adjust the production structure and achieved a counter-trend growth in performance.
Liugong's semi-annual report shows that although the company's performance still dropped year-on-year in the first half of this year, it has been improving month by month. Wang Xiaohua, chairman of Liugong Group, said that the international financial crisis has provided Liugong with a good opportunity to seize market share. He provided a set of data: The company achieved a net profit of 369 million yuan in the first half of the year, an increase of 0.59% over the same period of last year. In the first half of the year, it exported a total of 1,604 machines and exported 429 million yuan worth of machinery and accessories. Among them, loaders accounted for the largest export sales in the country and the second largest sales volume. Excavators accounted for the largest export sales in China and the third largest sales volume. The share of road roller exports also rose sharply by 12.6%, which was the third highest export volume in 2008. The first place.
The Liugong semi-annual report also showed that in the first half of the year, the company's main earth and stone machinery gross margin reached 21%, a record high. “In response to the crisis, Liugong first started with reducing expenditures and cutting inventory, keeping cash flow, and maintaining market share. It tapped potential from the inside and achieved a higher grade in management and control, and strived to make the enterprise more fit and healthy.” Wang Xiaohua said.
Since the beginning of this year, the overseas development strategy has also become a powerful weapon for Liugong to increase production capacity and sales volume and respond to the decline in exports. Currently, "Liugong Brand" has been "camped" in more than 80 countries around the world and has expanded its loader to a full range of products. LiuGong has developed more than 70 international distributors overseas, and has established 8 parts and accessories centers, and established marketing companies for international regions in Australia, the United States, Brazil, India and other countries and regions. In the markets of Kazakhstan, India, Russia, Australia and other countries and regions, Liugong has established a service and fittings system.
In the first half of the year, Liugong also achieved a number of breakthroughs in the R&D of core components. "With the improvement of independent innovation capability, we are striving for the key component quality to reach the international level and form the core competitiveness. This is the basis for the growth of Liugong's performance," Wang Xiaohua said.
The semi-annual report recently published by leading enterprises of construction machinery generally shows that the performance is higher than expected. Experts in the industry believe that the drive for relevant policies, the innovation of leading companies on business methods and technology will lead the industry to further pick up, and the outlook for the construction machinery industry in the second half of the year can be expected.

Weld Materials

1.Welding materials

In Welding, substances called filler materials or consumables are used. As the name implies, these substances provide filler or a body of molten materials that provides a strong bond to be formed between the base metals used. Most welding processes will also require some form of shielding to protect both the main components and filler from being oxidized during the process.


The type of welding materials used during welding depends on the nature of the job intended. Electrodes draw the necessary energy in order to perform welding applications. Luoyang Golden Egret Company has any kind of welding materials include CTC Welding Rod /rope, SCTC welding rod/rope, TC electronic welding rod, Ni-based welding rod, flux-cored Welding Wires, solid welding wires and etc.

Welding can be applied in different kinds of industries such as building and construction, oil and gas, marine, power generation, steel, mine tools, automobile, transportation and etc.


2. Welding rod

1)Cast tungsten carbide based tubular rod

The hard phase of the rod is cast tungsten carbide which leads to higher hardness and better wear-resistance.

Wear resistance: the wear resistance is 6-7 times better than others. Tested by ASTM G65

Mainly used for Mining machinery, Geological tools, Petroleum drilling tools etc, by Oxy-Acetylene with weak carburizing flame.

Ni Based Welding Rod


Product recommendation:

GT1103 (CTC, 60-80 mesh),

GT1103-1(CTC, 20-30 um),

GT1103-2(CTC, 40-60 um)

2)The hard phase of tube rod is carbide pellets which leads to higher impact resistance and better wear resistance than CTC cloase rod.

Wear resistance: the wear resistance is 6-7 times better than others. Tested by ASTM G65 wear test.

Mainly used for mining machinery. Geological tools etc; by Oxy-acetylene with weak carburizing flame.

Product recommendation:

GT2102 (Cemented carbide grit, 30-60mesh)

GT2102-2(Cemented carbide grit, 30-40mesh)

GT2102-3(Cemented carbide grit, 40-60mesh)

3)Tube rod is composited by Cemented carbide pellets, Spherical CTC and CTC. The layer has higher impact resistance, better wear resistance and good fluidity than other rods.

Wear resistance: the wear resistance is 6-7 times better than others. Tested by ASTM G65.

Mainly used for oil method drill bits, such as Tri-cone bit, Steel tooth bit, PDC bit, etc. By Oxy-Acetylene with weak carburizing flame.

Product recommendation:

GT3302 (carbide pellets, 20-40mesh)

GT3302-1(carbide pellets, 14-40um)

4)The hard phase of the rod is monocrystal WC, the welding layer has a higher wear resistance and better impact resistance.

The wear resistance is 6-7 times better than others, tested by ASTM G65 method.

Mainly used for the repair and strength for oil drills bits, such as PDC bit diameter holding by Oxy-Acetylene with weak carburizing flame.

Product recommendation:

GT4104 (Monocrystal WC, 80-200mesh)

3. Welding Rope

Made form mixture of CTC and self-fluxing nickel alloy covering on nickel wire. The CTC is in spherical or irregular with good wear resistance; the nickel alloy is in spherical or nearly spherical shape with good wettability and erosion resistance and better corrosion resistance than tubular rod.

Recommend to use Petroleum drilling tools, Concrete mixing blade, Mud pump, Coal sluice, Coal drill pipe, Tunnel drilling machinery etc.

By Oxy-Acetylene Welding with weak carburizing flame.

5mm Welding Rope

Product recommendation:

GS110450N (CTC, 4mm, HRC 47-55)

GS110550N (CTC, 5mm, HRC 47-55)

GS110650N (CTC, 6mm, HRC 47-55)

4. Welding Bar

The rod is sintered by CTC and Ni-based powders. The CTC(Cast Tungsten Carbide) is in irregular or spherical shape with better wear resistance and the nickel alloy is in spherical or nearly spherical shape and has good wettability with cast tungsten carbide. The cladding layer has a higher impact resistance and better wear resistance.

Its wear resistance and corrosion resistance is between tube rod and flexible rope.

Mainly used on the Steel PDC bit, Concrete mixer blade, Mud pump, Miner chute, Miner drill stem and Mechanical parts of Tunnel rock drill machine etc.

Welded by Oxy-Acetylene with weak carburizing flame.

Product recommendation:

GD4025253-3(CTC, SCTC, 4*600/6*600)

GD4030303-3(CTC, SCTC, 4*600/6*600)

5. Welding wire

Intensified molybdenum titanium vanadium composite chromium carbide welding wire can improve layer`s bonding strength and tenacity. This wire can use for multilayer welding which has no peel off, and it can maintain good wear resistance under certain impact working condition.

Product recommendation:GSQD671Mo-4(1.6mm)

Medium carbon and high chromium wear resistance welding wire has a higher hardness, stronger wear resistance, and excellent toughness by adding a certain amount of molybdenum alloys and boride. It has a better impact resistance and strip resistance than high chromium cast iron type materials

Product recommendation: GSQD621Mo-4(1.6mm)

6. Tungsten Carbide Pellets

With high sphericity & excellent alloy organization, cemented carbide pellet is mainly used in welding, as an adding material of PTA Powder , tubular welding rod, to improve the wear resistance of the workpieces greatly.

Product recommendation: GQ06


Wc 6co Tungsten Carbide Pellets


7. Tungsten Carbide Grits

Cemented carbide grit with different percent of cobalt has good abrasive resistance and is widely used for making grinding, polishing and cutting tools.

Product recommendation: GS08A


Wc 8co Tunsgten Carbide Grits




Weld Materials,Tubular Welding Rod,Welding Electrodes,Stainless Steel Welding Rod

Luoyang Golden Egret Geotools Co., Ltd , https://www.xtclasercladding.com