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Hold BICES 2015 Successfully, Make New Contribution to Industrial Development

Vice-chairman and Secretary-general of China Construction Machinery Association Chairman of Beijing Asiamachine International Convention & Exhibition Ltd.

Good morning, ladies and gentlemen!

First of all, on behalf of CCMA and the organizing committee of BICES, I show my warmest welcome to every friend attending the press conference today and express sincere gratitude to people from all walks of life concerning and supporting BICES. I would like to take this opportunity to put forward three suggestions:

I. Review on the operation of China's construction machinery industry in 2014

In 2014, with China's economic growth slowing gradually and international political and economic situation becoming increasingly complex, the government has insisted on maintaining a stable development. By keeping the energy, acting actively, enforcing the reform, restructuring the industrial construction vigorously and focusing on the livelihood, the economy has been kept running smoothly and the quality of economic growth has been improved significantly. Under the influence of low demand in domestic and international market, the construction machinery industry in China has proceeded with confidence, actively transformed the mode of development, insisted on innovation drive, worked hard to optimize the industrial structure, improved the quality level of the product technology and promoted the internationalization, thus the whole industry runs smoothly in the trough.

Throughout the industry, we have made new achievements in the following six aspects.

1. The international status of China's construction machinery industry has been further consolidated. Firstly, the export volume remains high. According to statistics from the association, in the first three quarters of 2014, the export is nearly $15 billion, with year-on-year growth of 0.99%. In the downturn of the global construction machinery market, it's not easy for the construction machinery industry in our country to achieve steady development. Secondly, the international status of Chinese construction machinery enterprises has been further improved. According to the relevant media rankings, among the world's top 50 construction machinery manufacturers in 2014, 11 Chinese construction machinery enterprises are included, making China a country with the largest number of enterprises in this industry.

2. The capability of independent innovation has been constantly enhanced. A large number of new products of integrated or independent innovation have emerged. We have achieved positive results on the research of major technical equipment and industrialization. A batch of advanced technologies and products has obtained the science and technology awards and the development and industrialization of many high-end construction machinery components have made breakthroughs.

3. The reconstruction of industrial structure and the transformation of development pattern have achieved further development. The product upgrading has been accelerated; the industry reconstruction has effectively solved the problem of the excess productivity; the high-end equipment has been developing with a sound momentum; the service for the users has been improved; the market for the construction machinery has got healthy development.

4. The green development has achieved positive results and the social responsibility consciousness of the enterprises has been strengthened. Many major enterprises take advantage of their researches, and develop some innovative products, such as energy-saving and emission-reduction products, products manufactured with the green technology and remanufactured products, and they have become the leading pioneer to produce the energy-saving and environment-friendly products in the construction machinery industry.

The ability to cope with emergency and to fight with disasters has been strengthened and the procedure to solve problems has been institutionalized, systematized and normalized. Meanwhile, as for the hope projects and the aid for poor regions, the construction machinery enterprises have made great contribution.

5. Informatization and internationalization have been deeply integrated and actively promoted in the construction machinery industry. Many enterprises have realized the informatization from the product development to resource management, production and manufacture and after-sale services.

6. The pace of internationalization has been moving ahead. While obtaining new achievements overseas, key enterprises are actively expanding the international market with the aid of large exhibitions at home and abroad.

CCMA has led China Pavilion to international exhibitions, such as 2014 Conexpo Las Vegas, Russia 2015 CTT and other overseas exhibitions as well as domestic exhibition Bauma China 2014, making participating enterprises obtain good results in brand marketing, product promotion and other aspects.

At present, despite of the "superposition of three phases" effect and some other factors, the construction machinery industry is still in the temporary "throes", still facing bigger test, but the country's overall economic development is positive and new developmental opportunities are embodied in the reconstruction of construction machinery industry.

II. Situation faced by China's construction machinery industry in 2015

1. Situation analysis

The stable development of national economy serves as the foundation for the sustained and healthy development of construction machinery. Since the 18th Party Congress, the government has adhered to the development strategy of "steady growth" and the development of national economy has been developing vigorously. The uncoordinated, unsustainable and unhealthy growth factors are gradually weakened. The macro-economic development is at a good momentum; the industrial production has achieved steady growth and the medium growth in the fixed asset investment will be normal for a long period of time. We should actively adapt to the development of new developmental environment. We will be efficiency-driven and innovation-driven rather than elements-driven, be responsible for energy conservation and emission reduction, strictly follow relevant technical regulations, make efforts to solve accumulated problems in this industry and promote the sustainable development of the industry.

In 2014, although some policy effects in the construction machinery industry have not been fully revealed, with the deepening of various reforms and gradual implementation of related policies, it is expected that all the government’s measures of “steady growth” in construction machinery industry will take their effect in 2015.

According to statistics, our country is constantly increasing the investment in the infrastructure and the investment in urban fixed assets is keeping a double-digit growth since 2014. Especially in transportation, energy, water conservancy, new-type urbanization and construction of shantytowns, etc. most projects will be carried out in this year or the next year.

For highway construction, in 2013, the national investment in fixed assets of highway construction was 1.25 trillion yuan, and from January to August in 2014, the investment has grown by 20.2% than the same period of last year.

For railway construction, the central government has adjusted the railway investment plans for three times since the beginning of this year, and the rail investment has increased to 800 billion yuan. Due to the late start of preliminary preparation, the investment is only 235.2 billion yuan in the first half of the year. As the preliminary preparation for projects has been carried forward gradually, in the next period, the implementation of railway investment will take the effect gradually, especially because of the strong demand for construction machinery products from the new projects. The opinions of the State Council on the comprehensive development of the land for railway construction will greatly promote the reform of investment and financing for railway construction, broaden financing channels for railway construction, vigorously introduce private capital, increase railway construction fund and bring benefits for the construction machinery industry.

For water conservancy, the government has given priority to 172 major water conservancy projects. Based on the current 40 projects under construction, 44 major water conservancy projects will be carried out this year or next year. Meanwhile, for the other 88 projects which have not yet been initiated, the process for the preliminary feasibility examination and approval will speed up in order that these projects can be started during the period of “the 13th Five-Year Plan”.

For new-type urbanization and shantytown reconstruction, the State Council General Office has issued the Circular on Further Strengthening the Work of Shantytowns a few days ago, requiring speeding up the reconstruction of shantytowns, in order to fulfill the task in 2014 and to plan the future reconstruction of shantytowns from 2015 to 2017. From 2013 to 2017, “another 10 million shantytowns will be reconstructed”. Meanwhile, it is put forward that in the new human-oriented urbanization, “shantytowns and villages in the cities with approximately 100 million people will be reconstructed”. A new round of reform of shantytowns will open the prelude.

For urban rail transportation, at present, 12 cities including Beijing, Shanghai and Guangzhou have built and operated more than 50 urban railways with the mileage of nearly 1500 kilometers. Now, 40 cities have applied for railway construction projects and 28 cities have obtained the approval. 96 routes of 3000 kilometers in total have been planed, which need a total investment of more than 1 trillion yuan.

For energy construction, the running nuclear power installed will reach 40 million kilowatts by 2015, and 18 million kilowatts are under construction. By 2015, the installed power of wind power and solar power can reach 100 million kilowatts and 21 million kilowatts respectively.

In addition, there are some restricting factors for the world economic situation, including the geopolitics and the increase in the risk of incidents, which put great pressure on our trade exporting. But there are many favorable conditions which provide opportunities for the internationalization of Chinese engineering machinery enterprises.

2. Prediction on the development

According to the development of construction machinery industry in recent years and the basic situation of our macro-economy, the construction machinery industry, in 2015, is expected to carry on the low-speed growth of the last two years; the industry-wide revenue will increase by about 7% based on the actual revenue realized in 2014 and the export situation will be slightly better than 2014.

III. Hold BICES 2015 successfully and make new contribution to industrial development

Based on the above analysis and prediction, in 2015, China's construction machinery industry will actively implement the principle of "enhancing technology, protecting ecology, valuing quality and promoting development", continue to effective carry out the basic work about transformation and upgrading and quality and efficiency improvement, etc. and take concrete steps in strengthening the national power through construction machinery industry. The achievements will be fully displayed at BICES 2015 in Beijing. As an important part of the industry, BICES show will launch some important actions from 2015. First, the show will be hold in the best exhibition center in the north of China, i.e. China (Beijing) International Exhibition Center (New Venue), in order to make full use of regional advantages of Beijing, such as politics, economy, culture and tourism and completely enhance the quality of the exhibition. Second, the exhibition organizer’s service ability and quality will be strengthened and improved, that is to say, the organizer will strive to offer unique services in organizing professional visitors at home and abroad, inviting governmental officers, industrial organizations and experts and scholars at home and abroad, holding a variety of influential innovative activities, and organizing media reports before and after the exhibition, etc. Meanwhile, under the guidance of relevant ministries and commissions of the state, we will continue to make a success of concurrent exhibitions, such as China International Emergency Rescue Equipment Exhibition, the Third National Creative Design Contest of Construction Machinery and Global Top 50 Summit of Construction Machinery Industry, etc. We will try our best to hold BICES 2015 successfully, which acts as the sole representative of independent brands in China’s construction machinery industry and strive to be one of the top three in the world.

The capital Beijing is very beautiful in September and October. We sincerely welcome our friends from all over the world at BICES 2015. We will enjoy the achievement of the exhibition, develop profound friendship, spend great time together and discuss the way of further development. With our considerable and wonderful service, we believe everyone will be happy and satisfied.

Thank you all!