The Domestic Construction Control the Mining Industry

Domestic Environment

Currently, companies in China construction and mining equipment industry are facing much tougher times in 2009. The collapse of China and worldwide financial markets, the tightening of credit by the international lending institutions and the worldwide economic recession will adversely affect this important industry sector.

China construction and mining equipment industry has been for many years an international industry. Most China manufacturers, especially the larger ones, maintain global supply chains, import some level of their components from foreign manufacturers, and manufacture a portion of their product lines in wholly-owned facilities all over the world. Most of these companies manufacture the smaller, lower priced products abroad, but continue to manufacture the higher-priced, more specialized products in China manufacturing facilities. Most of the industry continues to perform engineering and other research and development processes in the United States. Acquisitions and mergers have been and will continue to be fairly commonplace, often involving foreign companies. China companies are also increasingly investing in foreign companies or forming strategic partnerships to increase their competitiveness in foreign markets.

2012 is a year when the twelfth five year plan of our nation has a strong development. The new rural construction, security housing construction, highway, and railway and water conservancy facilities construction become a top priority. The tendency that our country has a strong support for buildings will certainly increase the demand for raw materials such as cement, sand and concrete and will provide mining machinery industry with new development opportunities.

In addition, as the policy of development of western regions is promoting continuously, the rich coal and rock resources in the western region will inject new and fresh blood for the industrial development of our country. For this reason, the...