General machinery industry has a good momentum of development

President Yong Yongbin of the China General Machinery Industry Association stated that since the beginning of this year, the overall situation of China's general machinery industry has been better than the average level of the machinery industry, and it is expected that it will maintain a stable development momentum in the future.

Exhibition highlights industry progress

The bi-annual Fluid Machinery Exhibition sponsored by the China General Machinery Industry Association was held at the Shanghai World Expo Exhibition and Convention Center from October 31st to November 2nd. The theme of the exhibition was "Innovation, Energy Saving, and Green Manufacturing." The exhibition has a scale of 30,000 square meters, far more than the previous one, and there are more than 400 well-known domestic and foreign enterprises participating in the exhibition. The exhibits are divided into four major exhibition areas, namely, the four major product segments of pumps, valves, fans and compressors, and air separation equipment. Domestic backbone enterprises have actively participated in the exhibition, including Shenyang Blower Group Co., Ltd., Shaanxi Blower (Group) Co., Ltd., Wuxi Compressor Co., Ltd., and Shijiazhuang Power Pump Group Co., Ltd., etc. International exhibitors include GE Oil & Gas Group, EBARA Group, Shanghai Kashibi Pumps Co., Ltd., Denmark Danfoss Valves Co., Ltd., etc. It is worth mentioning that the largest exhibitor from this year's event is from Huludao Pumping Mountain Pump Park in Liaoning Province, and their total exhibition area is 504 square meters. They organized the participation of 16 companies in the park and exhibited more than 50 kinds and more than 200 models.

At the same time, the exhibition also supports a wealth of activities. On the first day of the exhibition, there will be the 5th International Compressor and Fan Summit and the International Fan Technology Forum. On the second day of the exhibition, the 4th China International Valve Forum and 2012 Compressor Technology Forum and New Product Launch will be held. Manufacturing high-end products supply and demand forum, as well as Huludao Dayushan Pump Investment Park Promotion Conference and Pump Valve Industry Development Forum.

Yan Yongbin said in an interview with the China Industry News reporter that this year's fluid machinery exhibition not only expanded in size, but also significantly increased the level of exhibitors and exhibitions exhibited by enterprises, which indicates that the pace of advancement of the industry is accelerating. In recent years, with the investment and construction of key projects in some countries, the demand for new products for general machinery has increased. Domestic companies have continuously developed new products such as nuclear-grade pumps, pipeline input pumps, and process pumps for coal chemical industry. At the same time, as the research and development level of China's general machinery products has been increasing year by year, the level of equipment for centrifugal compressors, large-scale compressors, and some key pump valves is high. At this exhibition, exhibitors have displayed new products and high-end products one after another. The technical level of the exhibits is significantly higher than that of previous exhibitions.

Industry highlights

Although many companies have reported that their business conditions have been affected by the economic downturn since the beginning of this year, there are no shortages of bright spots in the industry from the reporter’s interviews with on-site exhibitors. Some companies' operating results began to improve in the second half of the year, and some companies have opened up new customers and new areas.

Zhang Yuxin, chief engineer of Shanghai Liancheng (Group) Co., Ltd., told reporters that the company's operating performance in the first half of the year had some fluctuations. However, the business situation improved in the second half of the year and operating income increased by 10% compared with the same period of last year. This is mainly due to the company's overseas market growth. Compared with the same period of last year, the company’s overseas operating income has more than doubled this year, making a significant contribution to the growth of the company’s performance.

The reporter learned from Zhejiang Liou Co., Ltd. that the company is about to relocate. The new factory area is 500 mu. Compared with the original 100 mu old factory area, the new plant area is not only expanded several times, but also has relatively complete supporting facilities. In addition, Leo's smooth operation after the acquisition of Changsha Swan Industrial Pump Co., Ltd., from the company's management to the production plant, basically all the original crew. Leo Swan’s operating index for this year was 300 million yuan, which is an increase from last year. At present, they are working hard to complete the annual indicators, and their production tasks are arduous.

There are also some companies working hard to find new investment directions.

Since the Sichuan Air Separation Equipment (Group) Co., Ltd. was restructured in the 1990s, the scale of the company has grown, and its operating income has reached RMB 2.2 billion by the end of last year. This year the company required to reach the income level of last year. Up to now, it has completed a sales income of 1.7 billion yuan. Since the beginning of this year, the entire metallurgical industry has been sluggish, causing the company's orders in this industry to decline. However, the company adjusted the product structure, closely followed the market demand, and developed new markets in the fields of coal chemical industry, energy, and natural gas. At present, the company is embarking on the development of natural gas storage equipment while investing in the supply of industrial gas.

There are also some companies facing dilemmas and responding positively. Although Shanghai Jianping Balancing Machine Manufacturing Co., Ltd. was only established for 8 years, its annual growth rate is very fast. Cheng Zhenxiang, the person in charge of the company, told reporters that in the past few years they have participated in many exhibitions every year and have been expanding new customers. At this exhibition, their marketing department came to more than 10 people, accounting for more than half of the marketing staff. Moreover, they did not hesitate to use human and material resources to fill the company's products with booths. Every employee who stayed at the booth received warm reception from visitors, while other employees sent the company flyers around.

As the first time for Taiwanese company Hengchi International Co., Ltd. to attend the exhibition, visitors from the exhibition booth also stopped. The person in charge told the reporter that there are currently production bases in Shanghai and Nanjing. One of the new factories in Nanjing is an area of ​​more than 20,000 square meters. As the products are conducive to the protection of the environment, they can be used for the treatment of waste gas and waste water in factories. Therefore, the development in the mainland in these two years is better. Since this year, although the company's performance has also been affected, it will strive to achieve the level of last year in operating income.

At a promotion meeting held at the Dayushan Pumping Industry Park in Huludao, Liaoning Province, the reporter learned that in the first half of this year, new progress was made in attracting investment in the park. Shenyang Huaneng Power Station Pump Manufacturing Co., Ltd. and Yangzhou Jinyi Precision Pipe Co., Ltd. invested 15.2 billion yuan in 15 enterprise agreements. At present, the park has been showing the continuous extension of the industrial chain, the complementary advantages of the secondary and tertiary industries, and the gradual increase in major investments. Park planning to 2015, the realization of the pump industry enterprises to enter the 200, the output value of 10 billion yuan.

The future stability of the industry

As for the operational status of the general machinery industry this year, Zhai Yongbin commented that now the whole industry of the machinery industry has encountered difficulties. From January to June of this year, China's machinery industry realized total industrial output value of 8.7 trillion yuan, which is a growth rate compared to the same period of last year. 12%. General machinery manufacturing industry, the growth rate from January to June this year was 14%, higher than the average level of the mechanical industry. There are several major reasons for this. First of all, the demand for power generation equipment has a relatively large decline. The demand for conventional thermal power equipment is declining. Although the recent nuclear power plant construction has received good news and has just been restarted, compared with previous years, the number of newly-injected nuclear power plant projects will be reduced. In addition, during the “Twelfth Five-Year Plan” period, there are not many new major projects in the country.

However, from the analysis of the situation from the end of the “Twelfth Five-Year Plan” period to the next seven to eight years, the state has some new investment directions in terms of construction, which deserves the attention of the general machinery industry. For example, the country’s construction of oil and gas pipelines, large-scale natural gas liquefaction projects, etc. will all be the focus of investment in the future, and the coal chemical industry will have good momentum of development from the recent situation. Coal-based gas and coal-to-liquids will have Rapid growth. In the future, China will also strengthen energy construction, and coal chemical industry, petrochemical industry, natural gas, and other fields all have greater market demand for fluid machinery such as compressors, valves, and air separation equipment. Therefore, the fluid machinery market will maintain a certain degree of prosperity as the overall market demand declines. It is expected that the future general machinery industry will maintain stable growth.

Looking at the rapid development of the general machinery industry in the past 30 years, Yan Yongbin said that with the deepening of the country’s reform and opening up, private enterprises have developed rapidly in these years. At present, the number of domestic pump companies has increased to more than 2,000, and the number of valve companies has reached more than 4,000. The earth meets the market demand. However, in recent years, due to the improvement of the level of equipment, the pace of adjustment of the industrial structure has accelerated, and the independent innovation capability of the industry enterprises has been relatively out of line. Improving the capability of independent innovation of enterprises will remain an important task faced by the industry during the “12th Five-Year Plan” period.