Machinery sector expects double-digit growth in 2013 (3)

Effects of structural adjustment are apparent

The machinery industry's initiative and extensive market reform enables the industry to cultivate endogenous response ability and growth momentum prior to others.

"The machinery industry's initiative and extensive market reform enable the industry to cultivate endogenous response ability and growth momentum prior to others and create favorable condition for coping with the current difficulty", said Cai Weici, who pointed out that there were still highlights in the development of the industry and the effects of structure adjustment had been apparent.

Private and small businesses of the machinery industry have scored rapid growth. From January to October, private enterprises achieved output value of RMB 8.39 trillion Yuan, increasing by 17.81 percent compared with the period of last year, 5.9 percentage points higher than the average growth rate of the industry and their shares in the industry increasing to 56.3 percent. Small businesses, in particular, have seen their profit from January to September increase by 17.63 percent compared with the same period of last year, significantly than the growth rate of -4.68 percent of large enterprises and the growth rate of 0.69 percent of medium-sized enterprises at the same period. This is an indication that large state-owned enterprises have plenty of potential to be tapped.

The machinery industry's efforts to "go for the higher end and consolidate the foundation" are being accelerated. International topnotch equipments, including 80,000-ton stamping press, 3,000-ton caterpillar crane, and 520-horsepower bulldozer, have been created; CFHI's forge-weld hot-wall hydrogenation reactor was exported to India (for RMB 1.4 billion Yuan), Taiyuan Heavy Machinery's 4-cubic-meter to 35-cubic-meter mining excavators have been exported to India, Russia, and other countries, and ZPMC's marine pipe-laying equipments have been exported to America. Investment in infrastructure experiment, to which not much importance had been attached previously, has increased markedly; the independent development of key parts and special materials has accelerated. Efforts for the independence and innovation of parts like high-voltage insulating bush, transformer outlet device, and high-end valve that have long been dominated by multinationals have accelerated despite the influence of economic tightening up.

Besides, cost-reduction-oriented and energy-saving-oriented technology reforms have attracted great attention from the industry and enterprises. For example, to cope with the challenge of increasing labor cost and labor shortage, the bearing industry are gradually evolving from single-machine production to automatic connected production; driven by market competition pressure and in order to save materials and reduce consumption, high-speed upsetting is adopted for semi-finished bearings, grinding fluids are circulated collectively, and hydraulic systems are operated collectively.