The hottest M & A intensifies the construction mac

Mergers and acquisitions aggravate the "food and housing" construction machinery market of international giants

mergers and acquisitions aggravate the "food and housing" construction machinery market of international giants

China Construction machinery information

Guide: Recently, the overall acquisition of mountain machinery by caterpillar of the United States was approved by the Ministry of Commerce. This means that this large state-owned enterprise, which ranks first in the domestic machinery manufacturing industry, will be approved as a wholly foreign-owned enterprise. From which we have the world's best businessmen and the world's most first-rate university construction machinery industry association, we learned that in 2007, China's construction machinery industry actually

recently, the overall acquisition of mountain machinery by caterpillar of the United States was approved by the Ministry of Commerce. This means that this large state-owned enterprise, which ranks first in the domestic machinery manufacturing industry, will be approved as a wholly foreign-owned enterprise. According to the China Construction Machinery Industry Association, China's construction machinery industry achieved rapid and healthy development in 2007. Experts pointed out that with the continuous improvement of China's construction machinery industry in the global market, the competition between Chinese and foreign capital around the construction machinery industry will become more intense

the holding object must be the industry leading enterprise, which has become the basic point of multinational companies' acquisition activities in China's construction machinery industry. The next requirement is to have the right to sell and purchase in order to transfer profits. Multinational companies take advantage of the rare opportunity of China's state-owned enterprise reform to enter the critical stage to "eat and live" a number of leading enterprises in China's machinery manufacturing industry in the way of capital operation, so as to build their own global industrial chain and achieve monopoly on the Chinese market

if everything goes according to the intention of multinational companies, if the above conditions are normal, the result is that the total industry volume will grow rapidly, but if the core parts, key fields and high value-added parts are controlled by foreign capital, there will be a dangerous scene of "big outside and empty inside". In the international division of labor, Chinese enterprises are in danger of being nailed to the low end of the value chain

in the field of construction machinery, excavators go another way. Komatsu and Hitachi in Japan, caterpillar in the United States, Doosan and Hyundai in South Korea have controlled major domestic manufacturers through joint ventures. In recent years, 80% of the share of excavators has been occupied by foreign-funded enterprises. This is a heavy lesson for China's construction machinery industry. The key is to improve the level of opening up

insiders generally pointed out that, like other industries, the all-round development of China's construction machinery industry also began with the introduction of foreign advanced technology in the reform and opening up, and the role of foreign capital in promoting the development of the whole industry is irreplaceable. Without the opening of the original industry, there would be no construction machinery industry today

Wang Xiaocheng, Department of foreign investment of the Ministry of Commerce, told that before the joint venture, Shangong machinery was on the edge of loss. 25. The control system has strong adaptability to the environment. In 2004, the enterprise profit was basically zero, and the company's debt ratio was as high as 98.3%. In order to obtain funds and change the passive situation, Shangong machinery actively seeks overseas strategic partners. After the joint venture with caterpillar, Shangong machinery introduced advanced technology and gradually digested and absorbed it, improving the technical level and product quality. At the same time, through the establishment of R & D centers, it continued to develop products suitable for emerging markets, and expanded exports by using caterpillar's global supply chain. After the joint venture, only in the first half of 2005, it turned losses into gains, making a profit of 6.26 million yuan and exporting 200 loaders

many industry experts believe that there is still a large gap between China's construction machinery industry and the powerful construction machinery countries such as the United States, Japan and Germany in terms of enterprise scale, strength, brand influence and R & D capability. Huicong learned that there is a shortage of large construction machinery and equipment, and the output of large tonnage and high-performance products is insufficient. Compared with the powerful countries in the same industry in the world, China's construction machinery industry still has a gap of 15-20 years, especially in terms of durability, reliability and product performance. Cooperating with foreign capital is not only an effective way for Chinese products to quickly enter the international market, but also an advantage in purchasing foreign parts, attracting international talents, and establishing overseas sales networks, which can shorten the time to catch up with and surpass foreign countries. Moreover, with the growth of China's construction machinery enterprises, excellent domestic enterprises, including Sany Heavy Industry, Zoomlion Heavy Industry and Shanhe intelligence, have begun to implement their international development strategies step by step. In a few years, they are likely to merge and acquire foreign enterprises. Therefore, to insist on giving priority to myself is by no means blind exclusion

Gao Liang of the economic system Research Institute of the national development and Reform Commission suggested that an inter ministerial coordination and review committee should be established to standardize the procedures, processes and methods of foreign capital mergers and acquisitions, and review cross-border mergers and acquisitions in important industries and key areas related to national security and the lifeline of the national economy. "This is a good way to overcome the current problems of multiple departments, competing for power and shifting responsibilities.". Han Shengjian, director of the project Department of the China Chamber of Commerce for the import and export of mechanical and electrical products, said that 10 years ago, foreign brands occupied most of the market of China's construction machinery industry, and the deficit increased year by year, becoming one of the industries most worried about being impacted in the WTO negotiations. Nowadays, China's construction machinery products not only squeeze foreign brands out of the Chinese market, basically occupy all markets except excavators, but also export to European and American construction machinery production powers. China is becoming a global manufacturing center of construction machinery

the rapid growth of China's construction machinery exports began in 2004, and the sales growth in overseas markets was particularly strong in 2006. According to customs statistics, the export volume of China's construction machinery increased by 5.8 times from 2002 to 2006. In 2006, exports exceeded imports for the first time, realizing a surplus of 1.1 billion US dollars. In 2007, the export volume of construction machinery increased by more than 60%, with a surplus of more than US $3billion

the ability of independent innovation has been significantly enhanced

as one of the fastest-growing markets, China's construction machinery industry has attracted most world-class construction machinery giants, including caterpillar, Komatsu of Japan, case of the United States and so on. At present, the share of foreign brands in the domestic market has reached 50%, and China's construction machinery market has been fully internationalized

but Han Xuesong said, "although foreign technology has a high contribution to the growth of the industry, it has no future to rely solely on foreign countries. The construction machinery industry has paid attention to the protection of its own brands since the beginning of its development. So far, Chinese construction machinery products have rarely been labeled for foreign products."

although the overall quality of Chinese enterprises still lags behind that of multinational companies, they have gained the right to speak in individual market segments. Huicong learned that XCMG group produces a series of products and basic parts of engineering machinery made of real gold plates processed by phase change wrapping, heat insulation and energy storage technology. 70% of the products are domestic leading level, and 10% of the products reach the international advanced level; Sany Heavy Industry has a market share of more than 50% in domestic concrete pump trucks; In October, 2007, the 66 meter boom pump truck representing the international advanced technology level was developed and won the Guinness world record. Zoomlion has a market share of about 30% in the concrete pump truck market, Shantui has a market share of 45% in the bulldozer market, Liugong has a market share of 15% in the loader market, and more than 30% of the small hydraulic excavators of Shanhe intelligent company are used for export, all of which are self owned brands. The foreign market has a strong response, and the supply of products exceeds the demand

we should learn from the experience of the United States, establish an inter ministerial coordination and review committee, standardize the procedures, processes and methods of foreign capital mergers and acquisitions, and review cross-border mergers and acquisitions in important industries and key areas related to national security and the lifeline of the national economy