National Policy Promotes Development of Construction Machinery Industry

Since July 2010, national leaders have visited high-frequency equipment manufacturing companies and emphasized independent innovation. At the end of the 11th and 5th period and the start of the 12th Five-Year Plan period, through the intensive visits and research of the country, we can fully feel the country’s attention to the development of the equipment manufacturing industry and the high expectations of the message. For enterprises in the construction machinery industry, it is particularly important for them to realize their own leapfrogging development and pay attention to and make good use of current relevant policies.

National leaders visit high-frequency equipment manufacturing companies

From July 9 to 11, General Secretary of the CPC Central Committee, Chairman of the State, and Chairman of the Central Military Commission Tao visited the city in Henan. Luoyang is an important industrial base in China. Chairman Tao has visited three large state-owned engineering companies in Luoyang to inspect: China Yituo Group Co., Ltd., Luoyang Bearing Holdings Co., Ltd. and CITIC Heavy Industry Machinery Co., Ltd., all of which are equipment manufacturing companies. Chairman Tao hoped that the company could continuously enhance its ability of independent innovation, constantly adapt to new changes in the market, and comprehensively enhance its competitiveness.

In early July, Wen Jiabao, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, investigated and studied the economic development in Changsha, Hunan, and chaired a seminar on the economic situation in the provinces of Hubei, Hunan, and Guangdong. On July 2, Premier Wen Jiabao inspected Sany Group and Shanhe Intelligence in Changsha. It affirms independent innovation and encourages the development of world-class enterprises. On July 16, Premier Wen Jiabao visited the Heavy Truck Co., Ltd. under the Shaanxi Automobile Group to conduct research. He stated that he wants to maintain the continuity and stability of macroeconomic policies and encourage continuous innovation. All three are also equipment manufacturing companies.

Recently, national leaders visited high-frequency equipment manufacturing companies and emphasized independent innovation, indicating that the country has high hopes for equipment manufacturing industry. The equipment manufacturing industry bears the heavy responsibility of revitalizing the country's industry, and its dedication to the development of the equipment manufacturing industry will enable China to emerge from the international financial crisis as soon as possible.

Policy inventory:

Equipment manufacturing industry revitalization plan to promote industrial upgrading

The equipment manufacturing industry is a strategic industry that provides technical equipment for various industries in the national economy. It has high industrial correlation, strong ability to absorb employment, and intensive technology funds. It is an important guarantee for industrial upgrading and technological advancement in various industries and a concentrated expression of national comprehensive strength. In response to the impact of the international financial crisis, the Party Central Committee and the State Council have implemented the general requirements for maintaining growth, expanding domestic demand, and adjusting the structure, ensuring the steady development of the equipment manufacturing industry, accelerating structural adjustment, strengthening independent innovation capabilities, improving the level of autonomy, and promoting industrial upgrading. , specially compiled this plan.

On May 12, 2009, the Office of the State Council officially released plans for the adjustment and revitalization of the equipment manufacturing industry, with a planning period of 2009-2011. The plan proposes that to maintain stable production and operation of the equipment manufacturing industry, the proportion of added value in the national industrial added value will gradually increase; the level of domestic equipment will be improved, and the domestic market domestic product market will be stable at about 70%; and some companies will have international competition. The company's large-scale integration of science, industry, trade and trade has formed a group of "professional, refined and special" specialized parts manufacturing enterprises that participate in the international division of labor.

As the most important sub-industry in the equipment manufacturing industry, the construction machinery industry will be directly affected by the development of the equipment manufacturing industry. This revitalization plan will be a good news for “directly benefiting” in resolving industrial upgrading, technological progress, market survival, elimination of the fittest, and key bottleneck breakthroughs in the related fields of construction machinery and other equipment manufacturing.

Regional Economic Development Plan Drives Real Economic Development

China's "Eleventh Five-Year Plan" (2006-2010) plan clearly proposes that the regional development plan should promote regional coordinated development, gradually form a clear orientation of the main function, beneficiary interaction between East and West, and the regional coordination of the gap between public services and people's living standards. Development pattern.

In the first half of this year, the Liangjiang New Area, the Yangtze River Delta, and Qinghai Province, and even the Shenzhen and Xiamen Special Economic Zones have been gradually approved for expansion. China has ushered in the intensive release period of regional development plans. The pulling effect of the regional development plan on the real economy has been highlighted. It has now become an important “handle” to promote China’s economic development. In the regional development plan, infrastructure construction is one of its main contents. This gives the construction machinery industry The development has increased opportunities.

This year's Xinjiang regional economic development plan will be a hot spot and a focal point for the development of the western region.

West China Development Plan for the New Decade

Since the implementation of the strategy for the development of the western region, China has undergone tremendous changes in the western region. Infrastructure construction has made breakthroughs in this decade. It has not only contributed to the country’s economic and social development, but also opened up China’s machinery industry. A broader market space. As of 2009, a total of 120 key projects have been newly started in the development of western China, with a total investment of 2.2 trillion yuan.

From July 5 to 6, 2010, the Western Development Conference held by the Central Committee of the Communist Party of China and the State Council was held in Beijing to make new deployments to the strategic plan for the development of China's western region during the new decade. General Secretary Tao and Premier Wen Jiabao respectively delivered speeches emphasizing that the western region should be built into an important national energy base, deep processing base for resources, equipment manufacturing base, and strategic emerging industrial base. On July 5, 2010, the National Development and Reform Commission announced that the total investment for the Western Development Project this year will be 682.2 billion yuan. It will start 23 new key projects for the development of the western region. The 23 new key projects include the construction of new railways, highways, and airport expansion, and electricity. Construction, coal mine development, water conservancy projects, etc.

The central government financed 100 billion U.S. dollars to support the construction of Xinjiang. Xinjiang has become a key area for the development of China's western regions in the new decade. At present, a number of construction machinery industry enterprises have entered the market in Xinjiang.

New 36 Introduction of Private Capital to Drive Domestic Demand

After the outbreak of the financial crisis, the country adopted a series of investment policies to stimulate domestic demand and respond to the financial crisis. First, it launched the “4 trillion” stimulus plan in November 2008, followed by the launch of local government financing platforms and the expansion of transportation, power, and railway infrastructure. These measures have enabled China's economy to take the lead in recovering from the global crisis. However, if large-scale investments are to be conducted from the national level this year, the risks will be large and the national finances will be unbearable. So the "new 36" came into being.

On May 13, 2010, the State Council issued the "Several Opinions on Encouraging and Guiding the Healthy Development of Private Investment" (also known as the "New 36 Article"), and promoted the entry of private capital into infrastructure, municipal utilities, and policy-based rental housing construction. An important industry. On the same day, the capital market responded positively and the Shanghai Composite Index rose 2.06%. The investment of private funds and the increase of projects will directly increase the demand for construction machinery.

Financing Leasing Platform Guarantees Corporate Working Capital

It is understood that financial leasing is the second largest debt financing method in the world after bank credit. The penetration rate of financial leasing in developed countries and regions such as the United States, Europe, and Japan reaches 10% to 30%, while China only has 3%. At present, this financial service has been more widely used in China's Jiangsu and Zhejiang and other developed regions, but it is still in its infancy in other regions. As of the end of 2009, Shanghai had a total of 34 financial leasing companies, accounting for about one-fourth of the country. By July 6, 2010, Chengdu had only established its first joint-venture financing leasing company.

Shanghai's "finance lease" program has been reported to the State Council for approval. From the exploration of support policies for export tax rebates, corporate income tax, and business tax concessions for ship finance lease companies, they are ready to extend their use to industries such as aircraft, ships, automobiles, construction machinery, and large-scale equipment. These industries need financing leases to support funds.

At present, most domestic large-scale construction machinery manufacturers have set up financial leasing companies to promote the sales of their equipment through financial leasing, ensure adequate cash flow, and overcome the difficulties caused by the financial crisis. Sales have been realized. Contrary to growth. In 2009, the total amount of leasing business in China has exceeded 280 billion yuan. According to the penetration rate of financial leasing in developed countries and regions, there is still much room for development in China's financial leasing business. The development of financial leasing business is an urgent need for business growth in the construction machinery industry. In the future, the scale of China's financial leasing business is expected to further expand.

Remanufacturing Promotes Green Energy Conservation

Remanufacturing is an industry that implements high-tech repair and reconstruction of used products. It deals with damaged or obsolete components. Based on the analysis of performance failure analysis and life assessment, the remanufacturing engineering design is implemented. Series-related advanced manufacturing technologies enable remanufactured products to meet or exceed new product quality.

At the end of May 2010, 11 departments including the National Development and Reform Commission jointly issued the "Opinions on Promoting the Development of the Remanufacturing Industry." Construction machinery has emerged in the key areas of the development of remanufacturing industries such as auto parts and machine tools. At the on-site exchange of remanufacturing technology and experience held in Beijing on June 11th, Xie Zhenhua, deputy director of the National Development and Reform Commission, stated that it will use the central budget to invest in supporting remanufacturing key projects and other measures to expand the scale of remanufacturing industry.

In order to promote the formation of a relatively large scale of circular economy and cultivate new economic growth points, the Development and Reform Commission will work with relevant departments to compile the “Remanufacturing Industry Development Plan” in the next two years to clarify that China will promote the healthy development of the remanufacturing industry during the “Twelfth Five-Year Plan” period. Goals, priorities, and safeguards.

China is a big country in the manufacture and use of equipment, and its equipment assets have reached several trillion yuan. As China enters the peak period of scrapping of machinery and equipment, its advantages in society, resources, and environmental benefits determine that the development of the remanufacturing industry is imperative and has great potential.

From the above, it can be seen that with regard to the development of the equipment manufacturing industry, the country’s relevant policy support is very strong, and the attention and high-frequency visits of the national leaders will inspire the determination of the entire industry to forge ahead.

National Policy Provides Opportunity for Development The development of construction machinery is expected to reach a new high

The construction machinery industry in China was very optimistic during the first half of this year. At the beginning of the year, some people thought that the market for construction machinery in China might have been high and low in 2010. However, after six months of operation, the market for construction machinery was in short supply and queued up for cars. It was enough to prove that the market was not weak. From the current point of view, the sales target for the whole industry will be increased at the beginning of the year with sales revenue of more than 370 billion yuan and 15% year-on-year, while the export growth will be about 30%, but it is necessary to restore the financial crisis in 2008. The previous level still needs time.

The data shows that during the first four years of the “Eleventh Five-Year Plan” (2006-2009), the added value and total output value of the machinery industry increased by an average of 26.22% and 26.64% respectively, which is higher than the expected target of the “Eleventh Five-Year Plan” (12%). In 2009, the total output value of the machinery industry exceeded 10 trillion yuan, and the proportion in the national industry reached 19.67%. The development quality was obviously better than during the "10th Five-Year Plan" period.

This year is the last year of the “Eleventh Five-Year Plan”. All enterprises have already started to formulate the “Twelfth Five-Year” development plan. According to the “Rejuvenation Plan for the Equipment Manufacturing Industry” and related policies that have been or will be introduced, many companies are full of confidence in the development of the “Twelfth Five-Year Plan”: one for the Sixth Five-Year Agricultural Machinery Sixth Five-Year Plan; The production of 20-35 million units; Yuchai strives to enter the construction machinery billion group at the end of the 12th Five-Year Plan period.

As the next key area for the 10-year plan for western development, Xinjiang has become a competitive market for companies in the construction machinery industry. On July 15th, Xugong Group opened its 4S shop in Xinjiang Xugong Weiye Engineering Machinery Co., Ltd., a major distributor in Xinjiang; Dongqi promoted product structure adjustment and industrial upgrading to form a good development trend of multiple electric power; Northern Communications established Xinjiang Branch. Expanding the western market; Foton Lovol's first tractor 4S shop settled in Aksu, Xinjiang. The construction of key projects in Xinjiang has driven the construction machinery industry forward.

According to statistics, in 2008 China’s vehicle ownership amounted to 49.57 million vehicles (excluding low-speed cars), the machine tool inventory amounted to more than 700 million units, and the 14 main types of engineering machinery had a guaranteed amount of 2.9 million units, of which a large number of equipment met the requirements for scrapping. Will be eliminated later. The annual economic losses caused by corrosion and wear of China's industrial industry account for 4.5% and 5% of GDP respectively, while the combined losses of developed countries in the range of 4.5% to 5%, if China's remanufacturing can reach The level of developed countries can save 155 billion yuan for the country each year, so remanufacturing is an important direction for future development of construction machinery.

The importance of the country, the support of policies, and the diversification of businesses can all bring many opportunities for the development of construction machinery. If we can make good use of these resources, we will continue to enhance our ability for independent innovation, and constantly adapt to new changes in the market, so as to enhance our overall competitiveness. , then the development of domestic construction machinery will reach another high point.