"Chinese companies still lack key technologies in some hydraulic parts, transmissions, and bearings, and there is a gap between them and international companies." Sun Jianzhong, vice president of XCMG Machinery, talked about foreign capital monopolizing China's high-end components in construction machinery. . Various foreign companies have not only obtained higher profits in this round of development of the construction machinery industry, but also will continue to expand their production capacity in China in the future. Analysts expressed concern about this.
In 2009, Bosch Rexroth, which produces gearboxes and hydraulic systems, had global sales of 4.1 billion euros, while China accounted for about 10%. Its sales in China in 2010 will have a double-digit growth year-on-year. Steven Ong, general manager of Parker Hannibal Greater China, a manufacturer of fluid control valves, said: “Our sales in China account for about 5% of global revenue, and this year we have 600 million U.S. dollars. We expect that we can increase it in 3 to 5 years or so. To a billion dollars."
Zhou Xiqiang, the assistant president of XGMA, pointed out that foreign-invested parts and components companies not only earned money in China in the past few years, but also helped many foreign construction machinery assembly companies to obtain good returns. In addition, because individual foreign companies monopolized the entire accessory market, they also put forward a series of requirements, such as requiring Chinese construction machinery companies to pay a one-year advance payment, the supply period may be more than one year, etc. It has created a favorable environment for foreign assembly factories to gain more market share in China.
Guo Ai Securities analyst Yu Aibin believes that the expansion of production and investment by overseas spare parts manufacturers is a good news for China's entire vehicle companies, and it also has a negative impact. "After the expansion, the supply of spare parts for the domestic market will be sufficient, manufacturing costs will also be reduced, and the overall manufacturing cost of construction machinery will be expected to decline. However, this will inevitably make China's investment in component parts stagnant. If foreign giants join hands, Manipulating parts supply is a crisis for the construction machinery industry. Therefore, Chinese companies still have to make greater breakthroughs in parts and components."
In 2009, Bosch Rexroth, which produces gearboxes and hydraulic systems, had global sales of 4.1 billion euros, while China accounted for about 10%. Its sales in China in 2010 will have a double-digit growth year-on-year. Steven Ong, general manager of Parker Hannibal Greater China, a manufacturer of fluid control valves, said: “Our sales in China account for about 5% of global revenue, and this year we have 600 million U.S. dollars. We expect that we can increase it in 3 to 5 years or so. To a billion dollars."
Zhou Xiqiang, the assistant president of XGMA, pointed out that foreign-invested parts and components companies not only earned money in China in the past few years, but also helped many foreign construction machinery assembly companies to obtain good returns. In addition, because individual foreign companies monopolized the entire accessory market, they also put forward a series of requirements, such as requiring Chinese construction machinery companies to pay a one-year advance payment, the supply period may be more than one year, etc. It has created a favorable environment for foreign assembly factories to gain more market share in China.
Guo Ai Securities analyst Yu Aibin believes that the expansion of production and investment by overseas spare parts manufacturers is a good news for China's entire vehicle companies, and it also has a negative impact. "After the expansion, the supply of spare parts for the domestic market will be sufficient, manufacturing costs will also be reduced, and the overall manufacturing cost of construction machinery will be expected to decline. However, this will inevitably make China's investment in component parts stagnant. If foreign giants join hands, Manipulating parts supply is a crisis for the construction machinery industry. Therefore, Chinese companies still have to make greater breakthroughs in parts and components."
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