china market industry report q3, 2016 - vdma

VDMA |VDMA |

Sep, 2016

Gao Huijuan

Construction Equipment

China Market Industry Report Q3, 2016

VDMA | | 30.06.2016Gao Huijuan

Newsflash China» Policy News− China’s investment in fixed assets in Jan - Jul was up 8.1%− FAI of highway and waterway in Jan-Jul increased 108.2%− Penalty became more severe for construction machinery with China I,II

emission standards− Beijing starts labeling registration for non-road mobile construction machinery

» Market News− Jan–Jul Excavator sales volume 41,136 units, a year-on-year decline of 0.77%− Wheel loaders, bulldozers and road pavers sale volume in Jan-Jul 2016− Construction machinery import & export both fell down in the first half of 2016− 2016 Jan- Jul real estate development went stable and may surpass 2015− New contract of foreign contracted projects increased 15%

VDMA | | 30.06.2016Gao Huijuan

Newsflash China» Company News− Terra Drone promotes application of UAV in construction industry− Liugong European R&D Center will set up in Poland− Weichai Power's smart plant project granted RMB 90 million yuan subsidy− Zoomlion and Belarusian MAZ jointly established a joint venture− Atlas Copco Hong Kong new maintenance service center started operation− Wacker Neuson Group announced to build a new factory in China− NHI made acquisition of US firm Robbins− Sany Group will invest in residential industrialization projects in Malaysia− Zoomlion's first overseas maintenance center is established in Myanmar− Weichai Power Linde Hydraulics German new plant is put into operation− Half year report of construction machinery companies in 2016 Jan - Jun

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Newsflash China- Policy News

China’s investment in fixed assets in Jan - Jul was up 8.1%National Bureau of Statistics: In Jan-Jul 2016, China’s investment in fixed assets (excluding rural households) was RMB 31,169.4 billion yuan, with a nominal growth rate of 8.1%, 0.9 percentage points lower compared to the first half. In terms of month-on-month growth, the investment in fixed assets in July increased by 0.31%.In secondary industry, industrial investment was RMB 12,060.3 billion yuan, an increase of 3.4%, 0.8 percentage points lower than in the first half; of which, the investment of the mining industry was RMB 513.8 billion yuan, down 22.9%, a decline of 3.2 percentage; investment of manufacturing industry was RMB 9,961.9 billion yuan, an increase of 3.0%, 0.3 percentage lower; electricity, heat, gas and water production and supply industry investment was RMB 1,584.5 billion yuan, an increase of 19.9%, a decline of 2.6 percentage in the growth.

Gao Huijuan |

Source: http://news.21-sun.com/detail/2016/08/2016081214153713.shtml

30.06.2016

http://news.21-sun.com/detail/2016/08/2016081214153713.shtml

VDMA |


Investment in fixed assets of highway and waterway in Jan-Jul increased 108.2%According to the Ministry of Transport, from January to July 2016, a total investment in fixed assets of highway and waterway in the country was RMB 962.8 billion yuan, up 108.2 percent over the same period last year. Highway and waterway investment in eastern, central and western regions was RMB 297.8 billion yuan, RMB 199.7 billion yuan and RMB 465.3 billion yuan, an increase of 102%, 97.7% and 118.4%, respectively. The ministry spokesman Liu Pengfei said, in the "Thirteenth Five-Year Plan" period (2016-2020), the country will continue to accelerate the construction of transportation infrastructure. In railways, in the "Thirteenth Five-Year Plan" period China will add 30,000 km of railway nationwide, including 11,000 km high-speed railway and it is expected by the end of the "Thirteenth Five-Year Plan" period, the total mileage of highway in the country will exceed 5 million kilometers. In Water transport, in the "Thirteenth Five-Year Plan" period, the country will add 500 new deep-water berths in coastal ports, and the number is expected to reach 2610 by 2020. In civil aviation, in the "Thirteenth Five-Year Plan" period, the country will add more than 50 airports, and it is expected that the total number of civil aviation airports in the country will reach over 260 by 2020.

Gao Huijuan |


30.06.2016


VDMA |


Penalty became more severe for construction machinery with China I,II emission standardsSince China III emission standards for non-road mobile machinery was officially implemented on April 1, 2016, the country saw a wave of upgrades for construction machinery, and agricultural machinery with high emissions. Meanwhile, the provincial and municipal environmental protection departments have also introduced a series of policies to promote the implementation of China III emission standards.Currently the cities including Harbin, Wuhan, Zhengzhou, Xi‘an, and Foshan have introduced investigation and punishment mechanisms for the implementation of China III emission standards and registration is required for all non-road mobile machinery. Non-road mobile machinery such as construction machinery, agricultural machinery that do not meet China III emission standards will not be allowed to enter urban area for construction, and once found, it will be fined RMB5,000 yuan to 10,000 yuan.

Gao Huijuan |


30.06.2016


VDMA |


Beijing starts labeling registration for non-road mobile construction machineryOn July 12, the conference for starting the labeling registration of non-road mobile construction machinery in Beijing hosted by China Construction Machinery Association(CCMA) was held in Beijing. In order to fully implement the "Air Pollution Prevention and Control Law of the People's Republic of China" (released on August 29, 2015, and implemented (amended)) on January 1, 2016, CCMA in response to the call by the municipal government, decided to carry out the registration and labeling for non-road mobile construction machinery in Beijing. At present, it lacks of management in the use of non-road mobile construction machinery. "Registration for purchase of non-road mobile construction machinery is not required, and there is also no annual inspection and exit mechanism." According to preliminary estimates, the number of non-road mobile construction machinery in service in Beijing is around 100,000 units. But the construction machinery accounting for less than 2% of all vehicles in service in Beijing discharge more than 60% of the waste.Label for the "Phase zero, Phase I emissions" is yellow; label for the "Phase II emissions" is orange;" label for the "Phase III emissions" is green; and label for the "Phase IV emissions, DPF transformation, electric, natural gas," is blue.

Gao Huijuan |


30.06.2016


VDMA |

Newsflash China- Market News

2016 Jan – Jul Excavator sales volume 41,136 units, a year-on-year decline of 0.77%The sales volume of excavator were 41,136 units (including import) from January to July in 2016, a year-on-yeardecline of 0.77%. The sales volume of small size excavator (13 tons and below) were 20,861 units, accountingfor 50.71%; that of medium size excavator (13-30tons, excluding 30 tons) was 13,055 units, accounting for31.74%; that of large size excavator (30 tons and above) was 3,551 units, accounting for 8.63%.

Gao Huijuan |


2.944 3.651

13.7687.156 5.487 4.461 3.669

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 (Unit) 2014 (Unit)2015 (Unit) 2016 (Unit)

30.06.2016


VDMA |


Wheel loaders declined while bulldozers and road pavers slightly recovered in Jan-Jul 2016The sharp decline trend in wheel loader sales has not changed. In Jan-Jul, wheel loader sales* in China were 41,210 units, including exports of 7,965 units.In the first seven months of 2016, bulldozer sales* in China were 2,640 units, including exports of 557 units, accounting for 21.10% with the proportion increased slightly. Compared to the same period in 2015, domestic demand has increased. As a leader bulldozer manufacturer, Shantui was still firmly ranked the top in bulldozer market.The 18 companies involved in the statistics of the first half of 2016 sold a total of 1,127 units of road pavers, an increase of 4% over the same period of 2015.* Sales statistic include 26 main manufacturers in China.

Gao Huijuan |


30.06.2016


VDMA |


Construction machinery import and export both fell down in the first half of 2016General Administration of Customs: In the first half of 2016, China's construction machinery product imports and exports was USD 9,837 million, down 15.5%. Of which, the import amount was USD 1,609 million, down 13.9%; exports amounted to USD 8,228 million, down 15.9%.In terms of export volume, excavators, pavers, concrete machinery, tunnel machines, and off-highway dump trucks increased while loaders, bulldozers, graders, other road machinery, construction cranes, drilling machines declined compared to the same period. In terms of the export value, only tunnel machines increased, while exports for the remaining major categories of products decreased.Main products with imports increased in the first half include: above 100-ton all-terrain cranes, pavers, other road machinery etc. Of which: both import volume and value for above 100-ton all-terrain cranes in the first half were four times that of the same period last year. In terms of major regional economies for the exports, export value to the European Union, South Korea, and India increased while the value of exports to the United States, Hong Kong, Japan, ASEAN, Latin America, Africa, and Russia fell. Export value to the EU surpassed the United States and ASEAN has become China's construction machinery largest market.

Gao Huijuan |


30.06.2016


VDMA |


2016 Jan- Jul real estate development went stable and may surpass 2015The nationwide real estate investment was RMB 5,536 billion yuan from January to July 2016, a year-on-year rise of 5.3%.Nationwide floor space under construction was 6,856 million square meters from January to July, up 54.8%; the new housing construction area was 929 million square meters, up 13.7%; the floor space of buildings completed was 459 square meters, up 21.3%. The land area purchased by real estate development enterprises was 118 million square meters, a year-on-year decline of 7.8%; the land transaction fee was RMB 385 billion yuan, up 7.1%.

Gao Huijuan |

Source: NBSC

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Jan-July

New housing construction area (10,000 square meters)Housing construction area (10,000 square meters)Completion of housing construction area (10,000 square meters)Real estate investment (RMB100 million yuan)Real estate business land transaction priceReal estate companies purchased land area (10,000 square meters)

30.06.2016

VDMA |


New contract of foreign contracted projects increased 15% in the first half of 2016Ministry of Commerce: In the first half, turnover of China's foreign contracted projects was RMB 431.33 billion yuan (USD 66.05 billion), down 2.2%. The new contract amount was RMB 651.01 billion yuan (USD 99.69 billion), an increase of 15% over the same period.

Gao Huijuan |


30.06.2016


VDMA |

Newsflash China- Company News

Terra Drone promotes application of UAV in construction industryUAV service provider Terra Drone announced a partnership with the world's leading construction equipment manufacturer Hitachi Construction Machinery to jointly promote application of UAVs at construction sites. Terra Drone, based in Tokyo, Japan, is a pioneer in UAV mapping and analysis services in the field of construction engineering."What we can offer customers is land surveying and analysis services based on automated drones. The data collected by UAV can be transmitted via the network to the data processing software to create a graphic such as floor plans and cross-sectional plans. "Terra Drone CEO Toru Tokushige said," This is our advantage compared to other UAVs enterprises.“

Gao Huijuan |


30.06.2016


VDMA |


Liugong European R&D Center will set up in PolandOn June 20 Poland local time: During President Xi Jinping's visit to Poland, Guangxi Liugong Machinery Co., Ltd. and the Polish National Research and Development Center signed an agreement to jointly establish Liugong European R&D Center. Under the agreement, Liugong (Poland) company plans to invest more than 100 million zlotys in the next five to ten years for the construction of Liugong European R&D Center and high-end construction machinery research and development and Polish National Research and Development Center plans to provide financial aid for Liugong's R&D project. The cooperative project is currently the only cooperative R&D project between Chinese enterprises and Polish National R&D Center.

Gao Huijuan |


30.06.2016


VDMA |


Weichai Power's smart plant project granted RMB 90 million yuan subsidy funds by MIITOn August 26, Weichai Power’s "high-end diesel engine intelligent plant construction based on intelligent equipment and industrial big data" project was selected to be the intelligent manufacturing comprehensive standardization and new mode of application project of the Ministry of Industry and Information Technology (MIIT) for the year of 2016 and received RMB 90 million yuan special subsidies.The national intelligent manufacturing comprehensive standardization and new mode of application project is for the further implementation of the "Made in China 2025" by MIIT to select a number of leading enterprises in the country. Through national special funds support, it will encourage the enterprises to develop intelligent manufacturing and promote integrated development and application of domestic intelligence equipment to effectively enhance the core competitiveness of China's manufacturing industry.

Gao Huijuan |


30.06.2016


VDMA |


Zoomlion and Belarusian MAZ jointly established a joint ventureOn August 29 local time, Zoomlion and Belarusian MAZ Group signed a strategic cooperation agreement to formally set up Zoomlion - MAZ joint venture in Minsk, Belarus. As the first batch of Chinese-funded enterprises settled in the Sino- Belarus industrial park since mid-May 2015, Zoomlion has been actively promoting cooperation with MAZ Group in its product localized production. After only seven months, the first batch of joint assembly equipment by Zoomlion and MAZ Group was off production line in Belarus, including 40-ton truck crane, 60-ton truck crane and 16-ton sanitation sweeper truck, in the brand name of ZOOMLION-MAZ.

Gao Huijuan |


30.06.2016


VDMA |


Atlas Copco Hong Kong new maintenance service center started operationOn May 31, the opening ceremony for "Atlas Copco Hong Kong new maintenance service center" was successfully held in Hong Kong,China. This service workshop will design a full range of construction equipment including air compressors, hammers, generators, water pumps, vehicles for construction site lighting. "Atlas Copco Hong Kong new maintenance service center covers an area of about 1,700 square meters, including equipment repair workshop, spare parts warehouse and office building. It can accommodate about eight large equipments for maintenance and overhaul work simultaneously.

Gao Huijuan |


30.06.2016


VDMA |


Wacker Neuson Group announced to build a new factory in ChinaOn June 22, Wacker Neuson announced plans to build a new plant in Pinghu, near Shanghai, China. First the plant will produce compact excavators for the Chinese market, and then it will produce other machinery products. It is expected that the first compact excavator will be off the assembly line in early 2018. With this new plant, Wacker Neuson can further expand its production capacity in Asia and to strengthen its local operations in China. In the plant with a total land area of about 130,000 square meters, in addition to the factory, there are also research and development, quality management, logistics, service and training base with construction area of about 30,000 square meters. Construction for the new plant is scheduled to begin in the autumn of 2016. The products of the plant will initially serve local customers in China, and then for the Asian market.Wacker Neuson Group has 20 years of history for sales of construction machinery in China. In 2015, the company expanded the compact machinery portfolio for the Chinese market.

Gao Huijuan |

Source : http://news.lmjx.net/2016/201606/2016062409024537.shtml

30.06.2016

http://news.lmjx.net/2016/201606/2016062409024537.shtml

VDMA |


NHI made acquisition of US firm RobbinsOn June 28, the signing ceremony for completion of shareholding transfer of AmericanTBM firm Robbins acquired by NHI was held in the Northern Heavy Industries Group Co., Ltd. (NHI). This is NHI's another large acquisition following the 2007 acquisition of the French company NFM. NHI is a Chinese high-end equipment manufacturing backbone enterprise. In 2005 the company launched a comprehensive development on TBM, and now tunnel machine business has became a core product portfolio of NHI. By grasping the global opportunities for development, by integrating its NHI Shenyang tunneling equipment business, the French company NFM's TBM business, and US Robbins TBM resources, NHI set up a new company in the Shenyang Sino-Germany industrial park to create a world's leading and internationally enterprise.

Gao Huijuan |


30.06.2016


VDMA |


Sany Group will invest in residential industrialization projects in MalaysiaOn July 26, Deputy Prime Minister of Malaysia Datuk Sri, Dr. Ahmad Zahid bin Hamidi in his official residence met with the Sany Group delegation headed by its CEO Tang Xiuguo. Tang introduced “One Housing Development Plan in Malaysia" that Sany will be involved. "One Housing Development Plan of Malaysia" is a plan to benefit local people proposed by the Government of Malaysia. The plan aims to achieve a "shelter for all" as the goal, to build "affordable housing." The first housing construction project that Sany will be involved is located in Terengganu, Malaysia. These houses will be built with the use of advanced housing industrialization technology. To this end, Sany plans to build housing industrialization production base in Malaysia. According to reports, Sany entered the Malaysian market in 2007 and after nine years of operation, its sales in Malaysia have reached RMB 800 million yuan.

Gao Huijuan |


30.06.2016


VDMA |


Zoomlion's first overseas maintenance center is established in MyanmarOn August 1, Zoomlion's first overseas full range of product maintenance center was officially inaugurated in Yangon, Myanmar. The special maintenance service center set up in Myanmar will provide sales of concrete machinery, construction cranes, building cranes, infrastructure construction and other equipment products, as well as spare parts supply and maintenance services covering all the main models of Zoomlion products currently available in Myanmar. In addition, the special maintenance service center has a repair shop, and spare parts warehouse; and a professional management team, as well as professional services engineers. Currently, Zoomlion has established nine central warehouses in Indonesia, Thailand, India, Dubai, South Africa, Algeria, Russia, Brazil, and Pakistan.

Gao Huijuan |


30.06.2016


VDMA |


Weichai Power Linde Hydraulics German new plant is put into operationOn July 12, Shandong Heavy Industry • Weichai Power Linde Hydraulics Aschaffenburg plant in Germany formally started production. Chairman Tan Xuguang said in his speech that since the successful completion of strategic cooperation between Weichai Power and Linde Hydraulics of KION Group, Weichai Power has invested Euro 1.5 billion in Germany and its German business has become an important strategic part of Weichai Power's global business. On December 27, 2012, Weichai Power acquired 25% stake of the German Kion Group, and 70% stake of Linde Hydraulics with Euro 738 million and it currently holds 38.25% stake in KionGroup, and 90% stake in Linde Hydraulics. This not only marks that Weichai's core technology has directly entered the world's advanced level, but it will also completely change the situation of Chinese high-end hydraulic products long-term dependence on imports. Weichai Power invested Euro 58 million in Aschaffenburg in September 2013, to start construction of Linde Hydraulics new plant in Germany and formally completed the construction in May this year.The new plant covers an area of 22,000 square meters, providing a workplace for 700 employees including 400 frontline workers and 300 staff for R&D, sales, quality management, order management, and procurement.

Gao Huijuan |


30.06.2016


VDMA |


Half year report of construction machinery companies in 2016 Jan - Jun

Gao Huijuan |

Source: annual reports of the listed companies

30.06.2016

Company Prime Operating Revenues in 2016 Jan-Jun(100 Million yuan)

Year-on-Year Changes

Net Profit in 2016Jan-Jun (100 Million yuan)

Year-on-Year Changes

Sany 112.2 -18.50% 1.38 -48.6%

Zoomlion 90.04 -14.83% -8.32 -169.99%

XCMG 81.38 -14.40% 1.27 1214.77%

Liugong 36.28 -1.68% 0.16 -81.56%

Shantui 23.82 4.12% 0.14 342%

Xiamen XGMA 19.44 24.87% -2.48 -24.49%

Sunward 8.43 11.73% 0.18 477.66%

VDMA |

Mrs. GAO Huijuan

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Gao Huijuan | 30.06.2016

china market industry report q3, 2016 - vdma

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