Partially-divided industry entry barriers are expected to improve reporters learned from China Heavy Machinery Industry Association yesterday that during the “Twelfth Five-Year Plan†period, the average annual growth rate of production and sales of heavy machinery industry was 16%, and the compound annual growth rate of five years was as high as 110%. 5 to 6 sales revenues of more than 30 billion yuan, 1 to 2 large-scale equipment manufacturing enterprise groups with sales revenues exceeding 50 billion yuan.
 At present, the leading companies in the heavy machinery industry, Zhenhua Heavy Industry, Taiyuan Heavy Industry, China One Heavy, Double Heavy Equipment, etc., did not exceed 20 billion yuan in sales revenue in 2010. This means that the above companies have huge room for growth in the next five years.
The production and sales scale of the “Twelfth Five-Year Plan†has doubled. The China Heavy Machinery Industry Association has clearly stated in the “Twelfth Five-Year Plan†of the heavy machinery industry that has been formulated. The industry’s target for the next five years is to increase production and sales by 16% annually and profit by 20%. According to this standard, the production and sales scale of the heavy machinery industry will increase by more than 110% at the end of 2015. The association also pointed out that during the "Twelfth Five-Year Plan" period, the heavy machinery industry must change blindly to expand production capacity, unilaterally pursue output value, and extensive high-speed development mode, and develop high-end equipment as the main breakthrough to improve enterprise competitiveness. He said that as an important category of strategic emerging industries, the main features of high-end equipment manufacturing are large-scale, complete sets, advanced technology, and highly intelligent industries. "At present, there are only a few advanced industrial countries in the world, such as the United States, Germany, Japan and other countries with high-end manufacturing. If China is to enter the equipment manufacturing powerhouse from the big equipment manufacturing industry, it must make breakthroughs in high-end manufacturing." The plan is clear. During the “Twelfth Five-Year Plan†period, the heavy machinery industry needs to master a number of core technologies in the field of high-end equipment manufacturing, and form a group of internationally renowned brands with independent intellectual property rights. The new product rate of the whole industry exceeds 30%, and the product quality And the number has increased significantly, more than 30% of the product technology and quality level has reached the international advanced level.
Improve the entry barriers of some sub-sectors. In view of the current gap in the local high-end manufacturing sector, the association believes that the large-scale enterprises have insufficient R&D investment in the early stage, and the technical reserves are not enough to keep up with the sudden changes in the domestic and foreign markets. The main reason. According to the introduction, the current heavy machinery industry also has a phenomenon of low-end overcapacity and fierce market competition. At present, the price war of some products has reached a fever pitch. Unnecessary price wars will cost the company's resources, which in turn will affect its investment in research and development. To this end, the association said that for the sub-sectors with overcapacity including gantry cranes, it is necessary to raise the threshold for entry in the future and eliminate a batch of backward production capacity during the replacement. The association also places high hopes on leading enterprises, and urges to vigorously promote mergers and acquisitions in the next five years, improve industrial concentration, and cultivate large-scale enterprise groups with equipment complete sets, general contracting, international trade, investment and financing capabilities, and form 5-6 sales revenues. More than 30 billion yuan, 1-2 large-scale equipment manufacturing enterprise groups with sales revenue exceeding 50 billion yuan.
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