The needs and development of mining machinery

The needs and development of mining machinery in China heavily depends on the state investment in fixed assets. Since the reform and opening up, China’s fixed asset investment has got rapid growth, which has driven the boom of investment in mining machinery industry. In recent years, China has taken measures to control the investment in fixed assets, but it doesn’t have big influence on the mining machinery. The investment in mining machinery industry is increasing continuously. In 2002-2009, the fixed assets in mining machinery have kept steady growth, which has shown that the returns on capital in mining machinery industry are higher than the social average assets. So the mining machinery is worth the investment.

From the current situation of domestic mining machinery market, the foreign capital has stepped up its investment in China. The world largest engineering machinery manufacturer Caterpillar Inc has announced that it plans to invest $10 billion in China’s engineering machinery market. Domestic enterprises are facing severs challenges.
The document formulated by the state to promote industrial structure optimization and upgrading in the “12th five year plan” stressed the need to improve the level of domestic production of major technical equipment. The countries will strengthen the policies to support the high-efficiency and clear power generation and transmission, large-scale petrochemical, transportation equipment, high-level CNC machine tools, automation control, integrated circuits, and advanced power devices industry. It can be inferred that the market will be further concentrated to large enterprises with the development of future mining machinery and the deepen competition in the jaw crusher and other industries. The strong will get stronger and the weak will get weaker. The domestic enterprises need to relay on their own forces to compete with multinational companies.