How can China's construction machinery industry get rid of the status quo but not strong?

China is a big country in engineering machinery manufacturing, but it is not a powerful country. China's production of construction machinery has accounted for half of the world's total production of construction machinery, but there are still big gaps between some high-end equipment and international advanced products. Then, what kind of quality does the "Made in China" construction machinery really mean? What is the status and image of "Made in China" construction machinery in the international community? How can China's construction machinery industry get rid of the status quo but not strong?

Status: Large but not strong Chinese construction machinery manufacturers have shouted the slogan of “Building a world-class brand” for many years, but the status quo is not satisfactory. What is the crux of the situation?

In response, Chen Xiaofei, vice president of Zoomlion, said that “Made in China” mechanical products can be sold overseas in recent years, which has already demonstrated that the quality of Chinese machinery products has been recognized by the world. Relevant data show that China's construction machinery sales and sales have leapt to the top in the world. It is estimated that in 2012, the growth rate of sales volume and sales of the construction machinery industry in China will be more than 30%, and the export value is expected to reach 8.5 billion to 9 billion US dollars. .

On September 28, 2009, Zoomlion officially signed an M&A contract with Italian CIFA Corporation. Looking back now, many of the more powerful European companies than CIFA have failed because of the 2008 global financial crisis. Although there are risks in overseas mergers and acquisitions, it is inevitable that Chinese companies “go abroad”. In addition, through cooperation with foreign companies, the status of Chinese companies in the world has been improved.

Su Zimeng, secretary-general of the China Construction Machinery Industry Association, said that China's construction machinery companies must strengthen their capacity for independent innovation. The central government has issued a number of "Twelfth Five-Year Plan" related to the construction machinery industry. If these plans can be implemented, it will promote the structural upgrading of China's construction machinery enterprises. In addition, currently, poorly-developed construction machinery companies are mainly due to hydraulic system and engine problems, because these parts and components require enterprises to have strong capabilities in precision casting and machining. Of course, this is also related to the overall level of the national basic industry. A hydraulic valve includes more than 400 parts, and the United States, Japan and other countries can be assembled in the country, but we can only rely on imports. At present, the state has called for the development of the “triple basic industries” (mechanical basic parts, basic manufacturing processes, and basic materials industries). If the above policies can be implemented, China’s basic industries will be able to take a new step. China’s construction machinery products and foreign developed countries The gap between products will become smaller and smaller.

Reason: The crux of the matter is whether the "Made in China" engineering machinery products must be transformed into "China-made, China-created" construction machinery products. Must they go overseas?

Chen Xiaofei said that construction machinery companies will certainly encounter many difficulties in the process of transformation. From the point of view of mergers and acquisitions alone, many Chinese companies have “failed” and ended in failure, with few successful cases. M & A must recognize each other's culture and corporate management philosophy. There is no doubt that Chinese construction machinery companies must take the path of international development. However, they must also face the difficulties encountered in this process and learn to solve them as soon as possible.

Dong Biqin, former deputy director of the State Council’s major technical and equipment office, believes that in the past there were problems with the development of the Chinese construction machinery industry. At that time, in order to ensure the reliability of the overall machinery, the international procurement approach was adopted, resulting in insufficient R&D for some key components. Domestication is a goal, but it is not 100% localized. The goal we pursue should not be controlled by people. We can design and manufacture the necessary equipment for the country.

In this regard, Su Zimeng said that in the future, China’s demand for construction machinery products will not decrease. The urbanization rate in China continues to increase, the infrastructure construction continues to advance, and the rapid development in the central and western regions. These are all good development opportunities for the construction machinery industry.

Transformation: Seeking International Development Recently, Sany Heavy Industry and other companies began to frequently conduct mergers and acquisitions overseas. What are the new trends and characteristics of China's construction machinery enterprises “going out”? Does China Construction Machinery Industry have Caterpillar-like high profit multinationals? Can the “Made in China” products in the field of construction machinery have their own distinctive features in the future?

In this regard, Su Zimeng said that the overseas M&A of China's engineering machinery manufacturers has just begun. For Chinese companies, going international and realizing globalization are inevitable choices. Current overseas mergers and acquisitions are conducted horizontally and concentrated in areas they are familiar with. It is necessary to first develop in areas that are familiar to them and achieve strong alliances before considering cross-industry and cross-field mergers and acquisitions.

Dong Biqin believes that the equipment manufacturing industry needs to be introduced as well as “going out”; it is necessary to make it domestically as well as internationally. In short, we must aim at “being unrestrained by people”.

Su Zimeng said that at present, the integrity of Chinese enterprises in the construction machinery industry is already very high, and Chinese equipment has “stopped people from stopping” in the market and has passed the market test. Such equipment can be used by any country. Chinese products are cost-effective, and some foreign companies are strong on high-end equipment, but we have strong strength in other areas.