Construction Machinery [HC] nuclear crisis triggered by the earthquake in Japan, the haze is from the people's vision slowly disappeared, but the Japanese economy and its global impact on related industries will continue, construction machinery industry is no exception.
For many years behind the development of our core components, supporting medium-sized hydraulic excavator heavy dependence on imports, mostly Japanese products. The Japanese earthquake on China's supply of the hydraulic system have an impact, thereby affecting the whole market.
Japan earthquake highlights the contradiction between demand and supply of hydraulic parts
Underdevelopment of domestic hydraulic parts, hydraulic parts import capacity is limited, affecting and restricting our whole business development. In recent years, although major foreign supplier of hydraulic components continuously increase capacity, but the Chinese market continues to maintain high growth, a shortage situation has not been thoroughly improved.
Excavator sales in China in 2010 reached 16.5 million units, up 74.5% in 2011 quarter, the domestic excavator more than 70,000 units sold, an increase of 60%. Such rapid gains excavator market, the demand for supporting hydraulic components can be imagined.
China hydraulic excavator products mainly from Japan, Korea, Germany, which support Japanese hydraulic components accounting for over 70%, mainly from Kawasaki Heavy Industries, KYB and Nabtesco. With China's construction machinery market, a substantial increase of production capacity, hydraulic supply and demand have become increasingly prominent. 2011, to meet market demand in China, three in fiscal year 2011 business plan will be made which can be increased by 20%. Since the earthquake in Japan, the Japanese manufacturer of hydraulic components have much concern.
It is understood that all the hydraulic parts Kawasaki factory in Kobe, west, away from the earthquake-hit far, the impact of their production small earthquake. However, the production of Kawasaki hydraulic damage to the upstream supplier is currently unknown; Kawasaki and KYB2011 addition of new capacity is expected in full production year, an earthquake or will affect its annual expansion plans.
News from all sides, the Japanese production of hydraulic components directly affected by the smaller, but limited power, parts shortages and logistics problems is bound to bring some degree of indirect influence, KYB has said is facing a shortage of oil seal. With the power of Japan after the earthquake, the gradual recovery of logistics, production will resume. However, the construction machinery industry of China and Japan, both competitors have a partner, no doubt, the supply of hydraulic parts in Japan will give priority to the Japanese construction machinery business to be purchased. At present Japan has started reconstruction work, the demand for construction machinery and equipment will significantly increase will squeeze out part of the hydraulic pressure supply. Even Chinese companies to invest in South Korea will focus on hydraulic parts supplier, increased its production capacity is very limited.