A "New Decade" in Western Development

The new decade is a period of strategic opportunities for the development of special advantageous industries in the western region. With the implementation of a series of policies such as the development of the western region and the “Twelfth Five-Year Plan,” Xinjiang’s transportation, water conservancy, urban construction, and resource development projects are in full swing. Construction machinery products have received unprecedented attention in the development of the western region. Data show that during the “12th Five-Year Plan” period, Xinjiang’s investment in transportation will exceed 100 billion yuan, which will bring tremendous opportunities for road construction machinery, maintenance machinery, concrete and asphalt equipment.

In 2011, the construction machinery industry experienced a climax and a trough like a roller coaster. It was even more exhausted in the second half of the year, but Xinjiang was the exception. With the support and assistance of national policies, and the further deepening of aid for Xinjiang and central enterprises in 19 provinces and municipalities, Xinjiang continues to develop rapidly with “Xinjiang efficiency”. In 2012, it was officially defined as Xinjiang's "Year of People's Livelihood Construction." According to a senior analyst from China Construction Machinery Business Network, Xinjiang, as a bridgehead for China's westward expansion into Central Asia, has also become increasingly prominent in its strategic role in the export of engineering equipment. Central leaders have frequently visited Xinjiang in recent days and have laid a long-term development for the leapfrogging development in Xinjiang. Foundation. During the entire “Twelfth Five-Year Plan” period, Xinjiang’s total investment in transportation will exceed 200 billion yuan, and the scale of railway construction will reach 1200 to 150 billion yuan. In the next five years, Xinjiang will have 130 billion yuan of funds for water conservancy construction, and 100 billion will be used for urban construction each year. During the “Twelfth Five-Year Plan” period, there will also be an investment of about RMB 15.1 billion for civil aviation construction. In addition, in the next five years, the total investment in the “central enterprises’ assistance in Xinjiang” project will exceed 700 billion yuan. It is estimated that by the end of the “Twelfth Five-Year Plan”, there will be 21 Xinjiang airports, covering the whole of Xinjiang.

During this period, many listed companies in the field of construction machinery also entered Xinjiang. As the earliest group of companies entering the construction machinery market in Xinjiang, the equipment of XCMG, Zoomlion, and SANY has frequently appeared in various local construction sites. And Sandvik, Caterpillar and other multinational giants have also set up agents or build factories in the area. According to industry insiders, the second half of 2012 will be more optimistic than the first half of the year. In the short term, the basic issue facing the entire industry is the need to increase the profitability of stock machines. In May, the “2nd China Xinjiang International Construction Machinery, Construction Machinery, Engineering Vehicles and Equipment Fair” will be held in Urumqi, Xinjiang. Many of the world’s top 50 engineering machinery companies have confirmed their participation. By then, Sany, Xugong, Cree, and Foton Lobo and many other construction machinery will compete for the Xinjiang market. Cai Weici, executive vice president of the China Federation of Machinery Industry, predicts that this year, autos and construction machinery are expected to get out of the steady decline of sales. He believes that the pressure on the entire industry in 2012 will be less than in 2011. Through fine-tuning, it will be conducive to the upgrading of the industry; at the same time, due to the continued expansion of production capacity, competition among enterprises will become more intense. It is expected that the production and sales of the machinery industry will increase by 18% to 20% in 2012, profits will increase by 12% to 15%, and exports will increase by 15% to 18%. These favorable external factors will also further promote the development of Xinjiang construction machinery.

In this regard, some experts even said that "in the next few decades, Xinjiang will change the competitive condition of the construction machinery market and the development of enterprises in a way that we cannot imagine." Xinjiang is undoubtedly an attractive big cake for the engineering industry. If you want to get a cup from it, it is the best policy to take it.