Media 2, Secretary General of China construction machinery industry association revealed that the construction machinery industry "Twelve-Five" plan has been reported to the national authorities, will be released in July. We believe that the industry "Twelve-Five" planned release will provide direction to the development of construction machinery in the next five years, to strengthen market confidence in the long-term growth of construction machinery.
1) industry as a whole will achieve stable growth: the "Twelve-Five" period, from 2015 sales revenue is expected to reach 900 billion yuan in construction machinery industry, the compound annual growth rate of 17%, in which exports will reach 26 billion dollar industry, exporting nearly 20% per cent. Compared with the growth rate of the 2001-2005, 2006-2010 and 28.1%, "Twelve-Five" during the industry growth has slowed significantly. We believe that, after experiencing high growth over the past decade, the market worried about construction machinery market is saturated, it is difficult to grow, and "Twelve-Five" introduction of planning will be enhanced to a certain extent market confidence in the long-term growth of construction machinery.
2) the products growth performance will reflected larger differences: from industry Association statistics of 12 species products Shang see, benefit Yu penetration of upgrade, Tower type crane and to concrete pump car, and concrete mixing transport car for representative of concrete mechanical future five years annual composite growth is expected to reached 15% above; round type crane, and track type crane, and flat machine, and assessment Pu machine is expected to achieved stable growth, future five years annual composite growth up 10% above; and pressure road machine, and mount machine, and Bulldozers due to the significant increase in the number of market and substitution effects are lower growth over the next five years grew at an average compound growth rate of only digits;
3) core components will be promoted to a new level of development: the lagging development of key components is the bottleneck of the long-term competitiveness of construction machinery in China. Demand in the past decade, companies will focus on the rapid expansion of wind turbine capacity to meet market demand, key components and basis technology's development lagged for a long time. We believe that, along with "Twelve-Five" during the competition in the industry intensifies, core components of the development work is expected to be promoted to a new level, is expected to form a Government, Association leading, joint champions break situation, in order to achieve a qualitative leap