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Investigation on Development Model of Hydraulic Seals Industry in China

2018-11-10

The profit of key parts is abundant, but the construction machinery enterprises in our country can only hand over this cake because of the immature technology. Especially the lack of high-end hydraulic components of construction machinery has become a hidden disease in the development of construction machinery industry.

At present, the hydraulic parts used by more than 20 tons excavators in China are basically controlled by an enterprise, namely Kawasaki Company of Japan. March 2011, Japan Earthquake. The Dongying Earthquake, thousands of miles away, has affected the domestic excavator manufacturers.

From March to April of that year, the supply of hydraulic components of excavators in Japan was interrupted. Domestic main excavator factories, which mainly depended on imported hydraulic components from Japan, were forced to slow down their production rhythm, and some of them could only stop working. Because the principle of Japanese Kawasaki Company in emergency is to supply goods first at home and then abroad, some main engine factories in China have to look for supplies everywhere in order not to affect the production schedule. Especially those excavator factories which have just started in the new round of capacity expansion, because they are not old customers of Kawasaki, their supply demand is more unlikely to be met. It is understood that Rongsheng Heavy Industry is one of them. Since Kawasaki's hydraulic parts can not be bought, we can only find another way out.

At this time, the brand Jiangshan began to emerge.

Jiangshan has two brands, Yantai Jiangshan Hydraulic Machinery Co., Ltd. and Jiangshan Hydraulic (Korea) Co., Ltd. (hereinafter referred to as Jiangshan). Xu Zhihuan, chairman of Jiangshan, is a native of Shandong, although he has some Korean style in his appearance and style of work. In his early years, he had been engaged in import and export trade of mechanical products for many years. Later, he invested and built factories in Korea, mainly producing key components urgently needed for import at home, such as hydraulic parts, and then shipped them to China for sale.

Rongsheng Heavy Industries can't buy Kawasaki's hydraulic parts, so Jiangshan sells them hydraulic parts made in Korea. Su Zimeng, secretary-general of China Engineering Machinery Industry Association, recently returned from a South Korean factory in Jiangshan. In an interview with China Industry Daily, he said that Jiangshan sold 400 to 500 Hydraulic parts in China last year.

Jia Xiaowen, Secretary-General of Construction Machinery Parts Branch of China Construction Machinery Industry Association, praised Jiangshan: In the past two years, domestic hydraulic parts enterprises have made great efforts to replace imports. Some main engine factories have joined the ranks of developing key components, and some professional hydraulic parts factories have also increased their research efforts. And enterprises like Jiangshan are invested by the Chinese in setting up factories abroad, which is also a way for the development of national industry.

Due to the gradual development of China's construction machinery industry and a series of industrial policies, the liquid and gas tight industry has been growing rapidly in recent years.

According to incomplete statistics, in 2011, the total industrial output value of Enterprises above the scale of liquid and gas sealing industry in China reached 77.271 billion yuan, an increase of 21% over the same period of last year. Among them, the hydraulic industry completed 43.620 billion yuan, an increase of 18.47%, the pneumatic industry completed 15.046 billion yuan, an increase of 29.60%, and the sealing industry completed 18.605 billion yuan, an increase of 23.95%.

Among 125 key associated enterprises in the gas and hydraulic industry, 64 were in the hydraulic industry, 6 were in the hydraulic industry, 40 were in the pneumatic industry and 15 were in the sealing industry. The comprehensive economic benefit index was 233.56, which was higher than 226.44 in the same period last year. The total industrial output value of these key linked enterprises was 33.424 billion yuan, an increase of 12.94% over the same period last year. Among them, the output value of hydraulic enterprises reached 14.171 billion yuan, an increase of 7.72%, the output value of hydraulic enterprises was 533 million yuan, a decrease of 4.77%, the output value of pneumatic enterprises was 8.639 billion yuan, an increase of 25.12%, and the output value of sealed enterprises was 7.322 billion yuan, an increase of 11.14%.

The good development prospects of the gas-tight industry have also attracted a lot of investment both inside and outside the industry. According to incomplete statistics, in recent two years, the investment funds of the liquid and gas tight industry are not less than 30 billion yuan, and the investment funds of the main engine industry such as construction machinery account for about 50% of the total investment. Sany Heavy Industries, Liugong, Longgong, Zhonglian Heavy Industries, Shandong Changlin and other well-known construction machinery enterprises have invested or merged and reorganized hydraulic enterprises.

However, the localization of high-end hydraulic components is not possible in the short term, but a long-term goal.