Global Machine Tool Industry Continued to Grow with The Output Value Increased by 34.7%

In 2011, the global machine tool industry continued to grow, with the total industrial output value increased by 34.7% year-on-year, the sales surged by 34.5% year-on-year and the import value up by 37.3% year-on-year. In particular, China still held its position as the world’s largest machine tool producer, consumer and importer, with the metalwork machine tool output breaking 1 million sets and the output value grew by 29.4%. Still, the sales realized the year-on-year rise of 32.9%, and the import value hit the year-on-year growth of 40.6%. As for products, the CNC rate of machine tools has further increased in China in recent years. In particular, the CNC rate of metal-cutting machine tools by output rose from 20.3% in 2007 to 29.9% in 2011, and the CNC rate by output value climbed from 43.7% to 55.4%, accordingly. Nevertheless, China has still a long way to go to lift up its CNC rate of machine tool, comparing with the developed countries with the CNC rate by output reaching over 60% and the CNC rate by output value up to 80%. As for enterprises, the competitive edge of Chinese machine tool enterprises is strengthening. Take SMTCL and DMTG for example, they have joined in the rank of global industrial leaders. In 2011, Shenyang Machine Tool (Group), with SMTCL (000410) as the core, came top with the revenue from machine tool business hitting USD2.783 billion, while DMTG held the fourth place worldwide. In order to consolidate its leading position, SMTCL carried out a “pyramid” product strategy targeting different grades of products and, built long-term cooperative relationship with Germany-based BOSCH, Schaeffler and US-based GE. DMTG is also striving to stand out and is making increasing efforts for going public. And it is projected to land on capital market in 2013. In addition, Wuhan Heavy Duty Machine Tool Group Corporation and BYJC place their going public scheme high on the agenda. Alongside with Chinese enterprises are growing stronger and stronger, foreign businesses, such as Yamazaki Mazak, Amada and Mori Seiki, are accelerating their pace to tap into Chinese market. Source: researchandmarkets