Heavy Machinery Industry Enters the Integration Stage Listed Enterprises Annual Report Breakdown Industry Opportunities

In 2018, heavy machinery witnessed a marked recovery in its entirety. Listed companies gave an in-depth analysis of the industry in their annual reports. From last year`s report of several companies such as China Yizhong and CITIC Heavy Industry, it can be seen that the heavy machinery industry is gradually undergoing the integration phase. Currently, small and medium ..

At present, due to the limitation of scale and capability, small and medium-sized heavy machinery enterprises have gradually separated from the heavy machinery industry and developed toward the general machinery industry, and gradually occupy an advantage in the specialized field of survival. Large-scale enterprises are merged into large enterprise groups through mergers and acquisitions. Promote the predominant assets and resources in the industry to concentrate on major heavy machine companies.

Opportunities and challenges coexist

Policy favorable factors are gradually emerging. The capabilities and level of the heavy machinery industry are related to the country`s competitiveness, the right to speak in discourse, the process of industrialization, and the security of the country. Most of the areas served (customers) are important sectors of the national economy, related to national economy, people`s livelihood, and national security. , are industries supported by national industrial policies. Since the [Twelfth Five-Year Plan", the state has successively issued a series of industrial plans that have brought about good development prospects for the development of heavy equipment manufacturing.

For China`s Yizhong and other northeastern enterprises, supporting major policy initiatives such as the revitalization of Northeast China in recent years will bring more policy dividends to enterprises. China regards independent innovation as a central link in transforming the mode of economic growth and serves as a national strategy, which brings opportunities for industrial rejuvenation. At present, the development of the national economy, adjustment of industrial structure, and upgrading of products have a great market demand for the heavy machinery industry. However, the existing technological level and manufacturing capability of the heavy machinery industry in China are far from meeting the huge demand for key projects and high-end products. At the same time, from the point of view of China`s economic development, we must speed up the transformation of economic growth mode and ease the contradiction between resources and the environment. We must strengthen the building of independent innovation capacity, promote product optimization and upgrading, and achieve economic growth from extensive to intensive. Type change, improve the utilization of resources and energy. Achieving growth and transformation in harmony with human nature at the expense of the ecological environment, achieving sustainable development, and creating opportunities for the revitalization of the domestic heavy machinery industry

The main challenge facing the industry today is still from technology. Compared with the foreign heavy machine industry, the domestic heavy machine industry has a relatively large gap in technological capabilities. In recent years, the foreign heavy machine industry has developed rapidly. Its characteristics are high levels of product mechanical, electrical and hydraulic integration, and high technology added value. High-level, digital, advanced information technology is widely used in traditional industries, replacing large amounts of physical work with software development and application. However, China's production is mostly low-end products, with low technological content, less sophisticated technology with international competitiveness, and relatively low levels of technology and equipment. On the other hand, it is faced with the challenge of forming a project general contracting capacity. China's heavy machinery enterprises are decentralized and insufficiently concentrated. Manufacturing and design divisions in various fields are separated. Various industrial fields (such as metallurgy, petroleum, chemical industry, shipbuilding, mining, cement, etc.) all have their own specialized design institutes, and the division of labor is too detailed. The combination of manufacturing companies, technical standards are not universal. It is difficult for manufacturing companies to adapt to different requirements of the design unit, and it is difficult to form their own design and engineering package capacity. In the international and domestic markets, it is even more difficult to form effective alliances to compete with large foreign companies' engineering general contractors and thus be forced to accept them. Foreign companies always charge high prices and play the role of working for them.

Transformation and upgrading are unchanged topics

From the perspective of subdivisions, the annual report of Taiyuan Heavy Industry analyzes that metallurgy is expected to continue a good development trend. Promoting green manufacturing and building beautiful China will accelerate the upgrading and upgrading of various products, lifting, excavation, coking, steel rolling, oil film, etc. Traditional products usher in better opportunities. The country has accelerated the development of advanced manufacturing industries and promoted the deep integration of the Internet, big data, artificial intelligence and the real economy. The research and application of information, intelligent technologies such as lifting, excavation, forging, coking, construction machinery, and port machinery are urgently needed. The development momentum of new energy is strong, and the prospects for nuclear power equipment, wind power equipment, fan hoisting and maintenance equipment are promising. Infrastructure construction such as high-speed railways and urban rail transit is at a golden age. Prospects for the use of gears and gears for shield machines, high-speed rail and urban rails are promising. The slow recovery of oil prices has gradually brought back the offshore equipment market, and the petrochemical sector has ushered in new development opportunities. The rapid development of offshore wind power in the world has brought new opportunities for products such as multifunctional auxiliary work platforms, wind power installation and operation and maintenance platforms. The shipping market has ushered in a recovery, and the advantages of Tianjin Binhai Terminal too much will gradually appear.

CITIC Heavy Industries puts forward the business model of [core manufacturing + comprehensive service" and focuses on building six core products with international standards, including mining mills, hoists, rotary kilns, roller presses, vertical stirring mills, and crushers. The awareness of industrial management and system coordination in the equipment industry sector has been continuously enhanced, and the advantages of [four industries and four industries" in host machines, new products, spare parts services and processing industries are forming.

Dalian Heavy Industry said in its annual report that it will target future products in three directions: high technological content, high added value, and strong industrial chain competitiveness. The company focused on breakthroughs in long-term dependence on imported special equipment and core components to achieve "core technology autonomy and core Localization of parts and components, intelligent products of the whole machine." The company will focus on the development of the seven core business segments, which will be supported by seven core business segments, and other businesses will complement the product structure.

The mechanical transmission plate will be oriented towards continuously expanding and replacing imported industrial gear transmission products to create a strategic pillar for enterprise development. The manufacturing service segment will take the lead of customer needs, and promote the internationalization of the four traditional products of bulk materials, port machines, cranes, and metallurgy with product intelligence and channel globalization. Control Panel: Based on the localization of the control system, intelligent product function modules, and digital factory overall solutions, the company formed a control business segment with distinctive features.

The offshore engineering sector will focus on the localization of key marine equipment core components to form the system integration technology capabilities and production capabilities of key offshore components and subsea production equipment.

The circular economy remanufacturing sector will focus on energy conservation and environmental protection, product additive manufacturing, and advanced spray coating technology development to form a specialized and professional remanufacturing business segment. The new energy sector will focus on the development of nuclear power equipment, fully digest the key technologies of third-generation nuclear power lifting equipment, pay attention to the development of the fourth-generation nuclear power technology, complete the development of equipment, develop international supplies, and build nuclear power lifting equipment products into internationally renowned brands.