Engineering machinery seeks "big" development tendencies domestic mergers and reorganization

In recent years, China's construction machinery industry has been in a trend of rapid development, and the explosive growth of its 2010 performance has surprised industry experts. The massive advancement of foreign construction machinery giants and the entry of companies such as Chery and Rongsheng Group have added to the competition in the Chinese construction machinery industry. Driven by the active implementation of national policies, some domestic construction machinery enterprises have obtained opportunities for development in the fierce competition. Development strategies such as mergers and reorganizations and industrial chain extensions will promote the survival of the fittest in the industry and accelerate the progress of domestic construction machinery companies towards internationalization.” Big "mechanical development.

Policy support to create industry "aircraft carrier"

Since September, the state's policy of promoting mergers and acquisitions of enterprises has been markedly increased, and the machinery manufacturing industry has been promoted as the focus.

The “12th Five-Year Plan” of the construction machinery industry is about to come out. Mao Zhongwen, deputy secretary-general of the Construction Machinery Industry Association responsible for drafting the plan, said that during the “Twelfth Five-Year Plan” period, the industry will be encouraged to reorganize mergers and acquisitions to eliminate backwardness through market competition mechanisms and control low-level repetitions. Land for construction projects and approval for construction projects. By the end of the “Twelfth Five-Year Plan”, the sales scale of China’s top 100 engineering machinery enterprises will exceed 85% of the entire industry, and efforts will be made to train large-scale enterprises with strong competitiveness and innovation capabilities to become “aircraft carriers” of international construction machinery.

According to forecast, by 2015, the sales scale of China's construction machinery industry will reach 900 billion yuan, an average annual increase of about 17%, of which exports account for about 20 billion US dollars, becoming the world's largest exporter of international construction machinery. It is imminent to increase the technological added value of product sales and further increase the international competitiveness of domestic enterprises.

Industry mergers and acquisitions to expand "big" mechanical development In recent years, the construction machinery market has become fiercely competitive. With the rising prices of upstream products and parts and components, the profits of the whole machine industry have been gradually diluted, prices have become more transparent, and powerful companies have not dared to focus their efforts on Instead of a single product and a single link, we hope to spread risks and increase profits by expanding our product lines and extending our industrial chain.

Some of the companies have acquired the need to open up new markets and seek for greater development through the acquisition of off-site companies. Liugong is one of them. In recent years, Liugong has achieved the layout of production bases in Jiangsu, Tianjin and other places through mergers and acquisitions and investment. The establishment of a new production base will make the company closer to the market or the place of production of raw materials, thereby significantly reducing transportation costs and achieving strong development of weak markets. It is much easier to acquire a more mature company than to invest in building a new factory. In recent years, there have been a few mergers and acquisitions cases in the construction machinery industry.