CHINA MARKET OVERVIEW Xingbin Li Chief Representative AMT China September 14, 2010 1
QUESTIONS? 1.
How much does the global financial crisis impact China’s economy?
2.
How much does the financial crisis impact our machine tool business in China?
3.
Where are the business opportunities now and in the future?
2
China’s Major Economic Indicators
3
Cutting and Forming Machinery: 2009 ($MM)
World US China Mexico India
Consume
Import
$51,210 $3,369 $19,786 $1,005 $1,156
$2,259 $5,897 $906 $900
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Machine Tool Consumption $19,786
$3,369
5
Buyers of Imported Machine Tools in China ? (In Millions of Dollars)
OWNERSHIP
IMPORTS
PERCENTAGE, %
WOFE (Wholly Owned Foreign Enterprise) & JV (Joint Venture)
3,245.00
55.02
SOE (State Owned Enterprise)
1,923.40
32.60
728.6
12.38
5,897.00
100.00
Private Total
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Drivers Stimulus Package 4 trillion RMB ($586 billion)
Ten Industries Revitalization Plan New favorable policies, subsidies and encouragement of technology innovation
New added bank loans/credits $1.41 trillion, up 95.7% (2009) $1.1 trillion (2010e) $0.72 trillion (2008)
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Opportunities Where are the business opportunities now and in the future? Automotive Aircraft Railway Power Generation, especially renewable energy
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AUTOMOBILE
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AUTOMOBILE – Growth potential Demand: 22 vehicles/1000 people in China vs. 499 vehicles/1000 people in Germany vs. 212 vehicles/1000 people in Russia 130 vehicle manufacturers 30,000 auto parts manufacturers 70% of MT used in auto sector are CNC MT Of which 80% are imported
Source: CAAM & CMTBA & DELOITTE
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AUTOMOBILE - Production 2009 13.79 million units an increase of 48.3% No.1 in the world
Source: CAAM
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Passenger Vehicle (Car, MPV and SUV)- Production 2009
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Vehicle Production Jan. – June, 2010: 8.9273 million units, up 48.84% Passenger Vehicle (Car, MPV and SUV)
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New Investments: 50 companies
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TOP SIX WIND TURBINE MANUFACTURERS IN CHINA Goldwind Sinovel DEC Gamesa Vestas GE Total:
% of total capacity 21.63% 17.75% 10.61% 12.77% 11.97% 5.25% 79.98% 43
WIND TURBINE MAKERS Locations
Xinjiang Golden Wind
Gamesa Tianjin Vestas Tianjin GE Shenyang Baoding Huiteng Wind Power
Sinovel/Dalian Heavy Duty Luoyang Yituo Meide Nanjing Highspeed & Precision Gear Group Acciona Nantong Shanghai Shenxin Wind Power
Zhejiang Windey
Dongfang Electric
Zhejiang Huayi Electric
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AMT China Staff AMT - Beijing Representative Office Xingbin Li Chief Representative Phone: (86-10) 6410-7374, (86-10) 6410-7375
[email protected] (
[email protected]) 011-86-13901179646 (Cell)
Shanghai Technology & Service Center Harry Xiao General Manager Phone: (86-21) 5868-2809
[email protected] 011-86-13585950550 (Cell)
AMT - Shanghai Liaison Office Sean Jiang Business Development Manager Phone: (86-21) 6279-7640 Ext. 6219
[email protected] (
[email protected]) 011-86-13801803680 (Cell)
AMT – Guangzhou Liaison Office Bill Chan Regional Manager Phone: (86-20) 8365-2629
[email protected] 011-86-15802772746 (Cell)
THANK YOU!
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