It has been a troublesome task for a well-developed construction machinery company that has been entering the new year.
In January 2011, the European Commission implemented the IIIB phase emission standard for diesel engines with non-road mechanical power ranging from 130 to 560 kW. The implementation of this standard will add a lot of pressure to China's construction machinery export business.
Increased cost pressures "Although the current share of China's construction machinery companies' exports to the European market is small, the implementation of this standard will still have a certain impact on the export of China's construction machinery companies." Deputy Secretary of the China Construction Machinery Industry Association Industrial Vehicles Branch Zhang Jie told reporters from China Industry News.
She explained that currently most of the engines used in industrial vehicles in China are imported from Japan. Due to the increase of EU standards, Japanese engine brands will also be adjusted according to changes in market demand, so prices will likely increase.
Wang Jinxing, director of the General Office of the China Construction Machinery Industry Association, wrote an account to the reporter. A 5-ton loader has domestic engines costing about 40,000 to 50,000 yuan, while foreign brands need about 70,000 to 80,000 yuan. As a buyer, you can only make less.
Zhang Jie said that if the profits are too thin, construction machinery companies can only resist the increase in costs by raising prices.
In an interview with the media not long ago, Liu Gong's secret secretary Wang Zuguang said that domestic engines still do not meet the emission requirements in Europe and other places. Liugong will solve the emission standards through international procurement. He also introduced that for the new standard, Liugong has already purchased relevant foreign engine brands that meet the standards.
“The continuous improvement of foreign emission standards will further increase the export threshold for construction machinery in China.†An analyst in the machinery industry said in an interview with reporters: “The biggest advantage of China’s construction machinery is its price, and the procurement of higher-standard foreign engines. It will increase the cost of the product and weaken the export competitiveness of the product.â€
The parts are subject to the “engine has always been the short board in the construction machinery parts of Chinaâ€, Zhang Jie also said that although in recent years China's engine technology is also constantly improving, but the foreign market brand awareness is not high, resulting in construction machinery The engine has been subject to people's passive situation.
At present, the construction machinery products equipped with domestic engines are mainly sold to developing countries. These are mainly low-end products with low technological content and low profits.
Therefore, to improve the level of China's construction machinery products need to improve the level of domestic components.
He Zaihua, a senior research fellow at China Investment Consulting Group, pointed out that breakthroughs in key components will be an important force in the construction machinery industry, but the overall market conditions are still worrying. The offensive speed of foreign capital in this sector seems to be getting more and more fierce. The benefits of foreign spare parts have not only gained huge profits for themselves, but also benefited many foreign construction machinery companies.
Delivery volume and delivery cycle directly affect production capacity. If foreign capital uses these two points to control the capacity of Chinese companies, even if domestic demand further increases, it will only create more market share for foreign companies. In order to recapture the right to speak in the market, it is necessary to master the manufacturing technology of parts and components.
The outlook for exports is still promising. IIIB stage emission standards set higher requirements for China's spare parts technology. In recent years, the domestic infrastructure construction has been booming. Chinese construction machinery companies such as Xugong and Sany Heavy Industry have made leaps and bounds. XCMG, Zoomlion, and Sany have all put forward development plans of “100 billion RMBâ€. Planning, the overseas market accounts for a large proportion, this year China's construction machinery products will face enormous challenges in entering the international market.
Some experts believe that although there are uncertainties in the three major markets of the United States, Japan, and Europe, there is still room for growth in China’s market share in Asia, Africa, and Latin America.
In particular, a group of emerging economies, represented by India and Brazil, have gradually moved from recovery to rapid industrialization. They have a strong demand for infrastructure construction and construction equipment, and have great potential for increasing China’s market share in emerging economies.
Zhang Jie said that in the international competition, China's construction machinery has advantages, such as the well-known brands in some countries in Europe, America and Japan are all shipped according to the order, so the delivery time is longer. And as long as the customer needs, China's construction machinery companies can provide products in a short time.
In the future, China's construction machinery exports will remain strong. It is expected that in the first two years of the “Twelfth Five-Year Planâ€, the export of construction machinery will maintain its recovery growth on the basis of 2010, and will show rapid growth in the next few years. By 2015, the international market demand for host products for construction machinery will reach approximately 200 billion U.S. dollars. The export of construction machinery products in China will reach about 20 billion U.S. dollars and become a world exporter.
Related Links:
The EU's first non-road mobile machinery emission control standard (Directive 97/68/EC) was released on February 27, 1998. Phase I of the EU was implemented in 1999. The phase II phase differs from 2001 to 2004 according to the power of the engine. Year by year. The current Phase III standard is implemented in two steps: The first step (Phase IIIA) includes only gaseous emissions from December 31, 2005 to December 31, 2007, compared to Phase II limits, nitrogen Oxygen emissions are reduced by 30%; the second step (phase IIIB) covers particulate emissions and will be implemented between December 31, 2010 and December 31, 2011. Particulate emissions will be reduced by approximately 90%, it is expected that the engine will be fully equipped with particulate filters. The EU Stage IV emission standard will be implemented starting in 2014 and the standard is equivalent to the United States Tier4 standard.
In January 2011, the European Commission implemented the IIIB phase emission standard for diesel engines with non-road mechanical power ranging from 130 to 560 kW. The implementation of this standard will add a lot of pressure to China's construction machinery export business.
Increased cost pressures "Although the current share of China's construction machinery companies' exports to the European market is small, the implementation of this standard will still have a certain impact on the export of China's construction machinery companies." Deputy Secretary of the China Construction Machinery Industry Association Industrial Vehicles Branch Zhang Jie told reporters from China Industry News.
She explained that currently most of the engines used in industrial vehicles in China are imported from Japan. Due to the increase of EU standards, Japanese engine brands will also be adjusted according to changes in market demand, so prices will likely increase.
Wang Jinxing, director of the General Office of the China Construction Machinery Industry Association, wrote an account to the reporter. A 5-ton loader has domestic engines costing about 40,000 to 50,000 yuan, while foreign brands need about 70,000 to 80,000 yuan. As a buyer, you can only make less.
Zhang Jie said that if the profits are too thin, construction machinery companies can only resist the increase in costs by raising prices.
In an interview with the media not long ago, Liu Gong's secret secretary Wang Zuguang said that domestic engines still do not meet the emission requirements in Europe and other places. Liugong will solve the emission standards through international procurement. He also introduced that for the new standard, Liugong has already purchased relevant foreign engine brands that meet the standards.
“The continuous improvement of foreign emission standards will further increase the export threshold for construction machinery in China.†An analyst in the machinery industry said in an interview with reporters: “The biggest advantage of China’s construction machinery is its price, and the procurement of higher-standard foreign engines. It will increase the cost of the product and weaken the export competitiveness of the product.â€
The parts are subject to the “engine has always been the short board in the construction machinery parts of Chinaâ€, Zhang Jie also said that although in recent years China's engine technology is also constantly improving, but the foreign market brand awareness is not high, resulting in construction machinery The engine has been subject to people's passive situation.
At present, the construction machinery products equipped with domestic engines are mainly sold to developing countries. These are mainly low-end products with low technological content and low profits.
Therefore, to improve the level of China's construction machinery products need to improve the level of domestic components.
He Zaihua, a senior research fellow at China Investment Consulting Group, pointed out that breakthroughs in key components will be an important force in the construction machinery industry, but the overall market conditions are still worrying. The offensive speed of foreign capital in this sector seems to be getting more and more fierce. The benefits of foreign spare parts have not only gained huge profits for themselves, but also benefited many foreign construction machinery companies.
Delivery volume and delivery cycle directly affect production capacity. If foreign capital uses these two points to control the capacity of Chinese companies, even if domestic demand further increases, it will only create more market share for foreign companies. In order to recapture the right to speak in the market, it is necessary to master the manufacturing technology of parts and components.
The outlook for exports is still promising. IIIB stage emission standards set higher requirements for China's spare parts technology. In recent years, the domestic infrastructure construction has been booming. Chinese construction machinery companies such as Xugong and Sany Heavy Industry have made leaps and bounds. XCMG, Zoomlion, and Sany have all put forward development plans of “100 billion RMBâ€. Planning, the overseas market accounts for a large proportion, this year China's construction machinery products will face enormous challenges in entering the international market.
Some experts believe that although there are uncertainties in the three major markets of the United States, Japan, and Europe, there is still room for growth in China’s market share in Asia, Africa, and Latin America.
In particular, a group of emerging economies, represented by India and Brazil, have gradually moved from recovery to rapid industrialization. They have a strong demand for infrastructure construction and construction equipment, and have great potential for increasing China’s market share in emerging economies.
Zhang Jie said that in the international competition, China's construction machinery has advantages, such as the well-known brands in some countries in Europe, America and Japan are all shipped according to the order, so the delivery time is longer. And as long as the customer needs, China's construction machinery companies can provide products in a short time.
In the future, China's construction machinery exports will remain strong. It is expected that in the first two years of the “Twelfth Five-Year Planâ€, the export of construction machinery will maintain its recovery growth on the basis of 2010, and will show rapid growth in the next few years. By 2015, the international market demand for host products for construction machinery will reach approximately 200 billion U.S. dollars. The export of construction machinery products in China will reach about 20 billion U.S. dollars and become a world exporter.
Related Links:
The EU's first non-road mobile machinery emission control standard (Directive 97/68/EC) was released on February 27, 1998. Phase I of the EU was implemented in 1999. The phase II phase differs from 2001 to 2004 according to the power of the engine. Year by year. The current Phase III standard is implemented in two steps: The first step (Phase IIIA) includes only gaseous emissions from December 31, 2005 to December 31, 2007, compared to Phase II limits, nitrogen Oxygen emissions are reduced by 30%; the second step (phase IIIB) covers particulate emissions and will be implemented between December 31, 2010 and December 31, 2011. Particulate emissions will be reduced by approximately 90%, it is expected that the engine will be fully equipped with particulate filters. The EU Stage IV emission standard will be implemented starting in 2014 and the standard is equivalent to the United States Tier4 standard.
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