Ministry of Industry and Information Technology phase out engineering machinery backward production capacity

On the 5th of this month, the Ministry of Industry and Information Technology announced the list of enterprises that eliminated backward production capacity in 18 industrial sectors such as iron making, steel making and coke. The list involved 2,087 enterprises. The Ministry of Industry and Information Technology urged relevant parties to take effective measures to ensure that the backward production capacity of listed companies will be closed before the end of September. There is no equipment manufacturing company and no engineering machinery manufacturing company.

From the point of view of eliminating backward production capacity, most of these 18 industries are high-energy, high-pollution industries, and at least 10 of them are closely related to engineering machinery. Just one of the more important attributes for the construction machinery industry is the upstream raw material industry.

China's construction machinery products lag behind foreign-funded advanced enterprises. If it is only because the core supporting parts are not as good as people, it is still excusable. When the advanced parts of the supporting parts industry have not yet formed advanced productivity, they can be compensated by means of international procurement. However, in fact, when engineering machinery companies conduct international procurement, there is an important task to purchase steel for key components. This problem is particularly prominent in products such as crawler cranes.

The raw materials are more painful than the matching parts - this refers directly to the country's most basic industries such as steel and metallurgy. This has led to problems in the industry that can not be solved by quickly replacing the kits, even a large system, but the unchangeable fact that the industry as a whole lags behind the world's advanced level.

For these 18 industries, the “bad money drive out of good money” effect caused by backward production capacity has caused the industry to stagnate, which is the most serious and urgent problem that the industry faces.

This time, the Ministry of Industry and Information Technology did make a great deal of determination. The list was announced in early August and all were required at the end of September. This means that the overall level of these 18 industries will be greatly improved. For the construction machinery industry, improving the basic performance of raw materials means that the foundation of the construction machinery industry will be firmly established.

Although this may cause some companies to lose their cost advantage, the raw materials used will be more secure for the entire industry. Companies don't have to focus on whether raw materials pass through, and researchers will be more comfortable in calculating the criticality of their products. This will fundamentally improve the technical height of the entire industry and reduce the uselessness of R&D personnel.

Is there any backward production capacity in the construction machinery industry? This answer is yes. Behind the industry's spurt development, the problem of overcapacity is looming. Some technologically advanced enterprises cannot completely divide the market, and some small enterprises take the opportunity to fish in them. These companies will soon be washed out of the construction machinery industry in the name of eliminating backward production capacity.

Increasing the overall performance of raw materials will undoubtedly force companies with strengths slightly lower than the industry average to improve their competitiveness, and the overall level of the industry has also improved. This means that the industry's entry barriers have been improved invisibly, and new entrants must have stronger technical strength and capital strength to be able to get involved. Therefore, although the 18 industries have not been involved in the field of construction machinery, the engineering machinery industry has actually benefited a lot.

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