Yi Xiaogang: The construction machinery industry has been bullish for two years

(China Securities Journal, July 31, reporter Lu Zhou)On July 28, Yi Xiaogang, executive president of Sany Heavy Industry, said in an exclusive interview with a reporter from the China Securities Journal at the collection ceremony of Sany Group's "the first domestic pump truck with independent intellectual property rights" that in the first half of this year, construction machinery enterprises, including Sany, generally showed a good momentum of production and salesRotary drilling rigsSome construction machinery products represented by the company are in short supply. He believes that the bottom of the industry has been seen, from now to the first half of the next year, the entire construction machinery industry will maintain rapid growth.

The industry bottomed out

Yi Xiaogang told a reporter from the China Securities Journal that judging from the sales situation of Sany, it was still very poor in March, it was particularly hot in April, and it was in short supply in May and June. "May and June are the traditional peak season for construction machinery, and it is normal to sell well. But in July, sales reached a new high, which I didn't expect. Yi Xiaogang said.
For example, in the construction of high-speed rail projects, Sany's rotary drilling rig sales have doubled; In the tide of real estate start-ups, concrete mixer trucks and mixing plants have also achieved double-digit growth. In the first half of this year, Sany's cumulative delivery of mixing plants increased by nearly 50% year-on-year. "At the beginning of this year, I was expecting a low and a high, but I didn't expect it to be so high. I think the sales volume in August is a bellwether. If sales fall in August, it means that this year's peak is two months later than usual; If August is still hot, then we will have to reconsider the capacity arrangement for the whole year. Yi Xiaogang said.
Sany's situation is a microcosm of the heating up of the entire construction machinery industry. According to the statistics of the Ministry of Industry and Information Technology, in the first half of this year, benefiting from the demand for large infrastructure projects such as railways, highways and airports, the output of lifting machinery, compaction machinery, conveying machinery and concrete machinery increased by 9.1%, 5.8%, 19.7% and 28.8% year-on-year respectively, 2.6 to 8.5 percentage points faster than the first quarter. In terms of products, the products of listed companies in the construction machinery category are developing in the direction of large-scale and high-tech content, so as to improve the signs of profitability.
Yi Xiaogang said that Sany Heavy Industry has always been positioned in the machinery manufacturing industry, "and related to the machinery industry, we are all likely to enter." "Mechanical products, including wind power equipment, are also being observed by Sany, but they have not yet mentioned the level of decision-making by the board of directors.

*5655 markets are overseas

Under the current situation of booming production and sales, Sany will start the infrastructure and technological transformation investment frozen last year, including the construction of production capacity, the layout of sales outlets and international investment, as well as the improvement of the international parts system and the selection of agents, which is to prepare for the production peak from next year to the first half of the next year.
Yi Xiaogang believes that Sany's internationalization focuses on integrating overseas resources with its own brand, fine manufacturing and R&D capabilities. In fact, the overseas market has become a must for various construction machinery enterprises. In 2008, China's construction machinery exports accounted for about 26% of the company's sales revenue. Some users expect that this year's export volume will decline by about 30% year-on-year. LiuGong built factories in India, Zoomlion acquired the Italian company CIFA, and Sany chose to build factories in Germany and the United States.
According to the data, in April, orders from U.S. construction machinery manufacturers increased by more than 150% month-on-month, and new orders continued to grow by 11% month-on-month in May, but the year-on-year decline was still more than 70%. Yi Xiaogang pointed out that although the recovery of orders is not enough to understand the recovery of the industry, and will not soon be reflected in the export of China's construction machinery industry to the United States, manufacturers generally believe that the industry may have bottomed out, and then may be a longer period of recovery.
"Although the domestic market is very important, even if it is 100%, it is so big. For construction machinery, the market for *5655 is still overseas. Yi Xiaogang said. It is understood that the construction of Sany's production bases in Germany and the United States is in progress, and the results will be seen soon.