German machine tools gearing up in China
Updated: 2012-12-10 09:37
By He Wei in Stuttgart and Hannover, Germany (China Daily)
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A MS22-8 multi-spindle machine from Index. The machine makes multi-tasking possible and greatly enhances production efficiency. Provided to China Daily |
The output of machine tools in China is increasing fast in both value and the number of units and the growth in numerical-control machine tools is even greater, indicating huge market potential.
According to a recent report by the German Engineering Federation, the market share of boring milling machines currently in China is only 10 percent but the percentage internationally is 24 percent.
The share of machine centers in the world market is 22 percent and that of grinding machines in the market is 17 percent, roughly 10 percent higher than those in China.
While trade undercurrents have been frosty, German manufacturers have more than enough reason to rejoice as they enter a new sector that has not been well tapped in the past: China's military industry.
The 12th Five-Year Plan (2011-2015) outlined the introduction of deepening industrial reforms aimed at boosting indigenous capabilities and propelling State-owned defense companies onto the global stage.
Against lackluster global demand, China's military industry has in contrast proved to be a "stable growth area" for the German manufacturers, said Hermann Hirsch, managing director of sales and marketing at Metabo-werke GmbH, a manufacturer of power tools and abrasives.
Metabo makes electric tools that are widely applied in metal processing and architecture decoration. But the company is poised to ride the military modernization boom as China wants to be more prominent on the global stage.
"We have participated in this kind of 'official bidding' in the past but now we are a lot more focused on this area because we see more possibilities in the future," Hirsch said.
He revealed that Metabo completed a project on ship maintenance in China by mid-2012 and is now in the final negotiation process with military factories of the Chinese navy.
Metabo's small angle grinders and big hammers will have big opportunities to be the selected tools in the future and it also has a good chance of selling impact drills and sanders to the Chinese military factories, he said.
Furthermore, Metabo made successful bids for two electricity generating sites in Zhejiang province in East China and Liaoning province in Northeast China, where rotary hammers, cordless drills and magnetic core drills are the main products.
According to Leibinger from Trumpf, shipbuilding is a niche market in which it has cooperated. But the Chinese presence is not yet strong because the country's yards still need to move up the value chain by focusing on high quality.
There is a more imminent market for aircraft making, which pushes up demand for engine components built using laser welding, he said.
After listing aerospace as a symbol and target of China's "high-value" ambition, the government pledged 1.5 trillion yuan to develop the industry.
Two years ago, Emag started developing a tailor-made machine for blisk manufacturing, a key component used in the turbines of aircrafts, said Kollmar.
In April, it handed over the first such product to the Aviation Industry Corp of China, China's leading aircraft manufacturer, a subsidiary of which is in charge of making the country's first indigenous plane.
"We definitely see growth and potential for turbine manufacturing, as needs will continue to expand. The biggest demand is in Asia and, of course, China," he said.
The turnover of this business sector has doubled every year since its establishment in 2010. Kollmar expected it to form at least 20 percent of its overall revenue in the coming few years.
Hammerl from Index agreed. He forecast the industry in China will enjoy explosive development in the next five years, with demand for making indigenous spare parts continually soaring.
"China is just at the infancy stage. We see great opportunities but systematic training on the basic know-hows of those machines is critical," he said.
hewei@chinadaily.com.cn
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