|
|
The daily news bulletin for the informed
wire & cable executive
Wire & Cable Industry news
Back to Wireworld News
|
August 15th, 2005
- General
Brantford Ontario - Not surprising but equipment makers ought to take note.
|
Thanks to rapid development in 2003 and 2004, China's rubber machinery industry is rising as an emerging giant in the world.
Fast development in recent years Both the total sales and the global market share of Chinas rubber machinery industry witnessed high-speed rise in recent years. The total sales of the industry were 6.09 billion yuan (US$750 million) in 2004, soaring 40 per cent from the previous year, or a growth of almost 1.5-fold within three years. The annual sales value was
4.35 billion yuan in 2003, 2.4 billion yuan in 2002 and 2.2 billion yuan in
2001 and 2000.
China's rubber machineries accounted for 26 per cent of the international market share in 2004, up from 20 per cent in 2003 and 12 per cent in the preceding three years.
Many Chinese enterprises have entered the world top list. Among the top 10 leading world rubber machinery enterprises are three Chinese ones, namely Guilin Rubber Machinery Factory ranking 6th with annual sales of US$67 million, Tianjin Saixiang Technology ranking 8th with US$59 million and Sino-rubber Machinery coming to the 10th with US$51 million.
Major reasons for quick growth China is developing at a high speed into an emerging giant in rubber machinery production, which is attributed to several factors.
First, it is encouraged by favorable macro policy environment. The Chinese government pushed forward system reform of state-owned enterprises.
Originally, China's rubber machinery industry was dominated by state-owned enterprises. Now 90 per cent of them are corporate entities, one third are groups and one tenth are listed on the stock market. Private enterprises are also encouraged by the government.
Second, it is a consequence of pulling effects of fast-expanding industrial chain. The auto industry, which accounts for 70 per cent of the total rubber consumption in China, has experienced a booming period in recent years; the construction industry, taking up 10 per cent of the total, has kept two-digit growth for years. Propelled by increasing consumption of these two industries, China has been the largest rubber consumption country in the world for three consecutive years, with an aggregate 61.9 per cent growth in four years. Accordingly, its global share has risen from 15 per cent to 20 per cent.
China's car tire output surged to 239 million units in 2004 or 20 per cent of the world's total output, growing by 97.5 per cent in four years time; the motorcycle tire output hit 75 million units, or three-fourths of the world's total; and the bicycle tire output reached 410 million units or 80 per cent of the worlds total.
Third, the rapid development is also boosted by the use of foreign technology and investment. The number of foreign-invested rubber machinery enterprises in China has exceeded 10 now, producing mainly high-end products, and their sales account for one fifth of the nations total. By taking advantage of advanced technologies of foreign enterprises like Japanese Kobe Steel and Dutch VMI, China-made products like industrial rubber injection molding curing machine, mixers and tire curing machines are of high quality and welcomed by tire giants such as Michelin, Bridgestone and Goodyear.
Fourth, the state's policy of encouraging homemade production is also a factor for the development. With research and development capabilities remarkably enhanced, China is able to produce extruders and shapers with independent intellectual property rights and starts to export such machines in large quantities.
Fifth, technology innovation plays a very important role in the development of Chinas rubber machine industry. Many research institutes and enterprises, such as Qingdao MESNAC Co., Ltd, Beijing Aeronautical Manufacturing Technology Research Institute, Tianjin Saixiang Technology and Guilin Rubber Machinery Factory, aim at high-level rubber machinery and high technology development, improving their competitiveness by producing new products to realize economic growth.
The market of rubber machinery production in China is now more specialized and market-oriented. Manufacturers are able to choose accessory suppliers at home or abroad.
There is also a new kind of relationship between manufacturers and users.
The original simple supplier-user relationship has changed into a new relationship mode of product development co-operation, achievements sharing and mutual risk undertaking, which facilitates quality upgrading, operation improvement and output increase.
Some weak points Despite the rapid growth, there is still a long way for China to become a really strong rubber machinery maker.
Firstly, China's rubber machinery making enterprises still face such unfavorable factors as systematic problems, low competitiveness and weak capability to resist risks.
Secondly, the enterprises mainly focus their attention on domestic markets with no one branching out abroad yet. In comparison, foreign rubber machinery giants derive half of their sales and profits from oversea markets.
Thirdly, the proportion of export is still low.
Fourthly, research input is far insufficient, and innovation capability is weak. Most enterprises are applying low price strategy to vie for market shares, which squeezes their profitability.
|
|
|
