After rebounding from the bottom in 2016, Chinas rubber machinery industry continued to improve in 2017, with double-digit growth in sales revenue, a sharp rise in foreign exchange earnings from exports and a marked increase in corporate profitability.
Industry insiders said that domestic and foreign tire enterprises are active in investment and demand for rubber machinery, especially high-precision intelligent rubber machinery, is improving. It is expected that Chinas rubber machinery industry will formally enter the uplink channel this year.
In 2017, 24 major rubber machinery enterprises in China achieved sales revenue of 7.735 billion yuan, up 11.3 percent from the same period last year, according to statistics from the rubber machinery professional committee of the China Chemical equipment Association. By analogy, Chinas rubber machinery industry is expected to total sales revenue of 10.65 billion yuan in 2017, an increase of 10.9%. This is the first year-on-year growth in industry sales revenue since 2015.
In 2017, the overall operating rate of rubber machinery enterprises in China was high, and sales income of most enterprises increased. Of the 24 companies surveyed, 15 saw sales growth, down 8 or 1 flat. According to sales income ranking, the top 10 are soft control shares, Sach Company, Dalian Rubber plastic, double Star Machinery, Fujian Sanming, Tianjin Seixiang, Yiyang Rubber Machine, Guilin Rubber Design and Wanxiang Xinyuan. The top 10 sales income is 6.54 billion yuan, accounting for 61.4% of the total sales income. Among them, the increase in sales revenue in more than twice the enterprises in Guilin Haoli Chuang, Inner Mongolia Futt, Hua-ao tire equipment.
Not only sales revenue growth, 2017 Chinas rubber machinery industry profits from last year also increased sharply, the industry profitability significantly increased.
It is understood that 24 rubber machinery enterprises to achieve positive profit, and profit growth enterprises account for the majority. In particular, listed rubber machinery enterprises significantly improved profitability. If soft control shares, the company achieved profits of nearly 93 million yuan in 2017, compared with a loss of 770 million yuan in 2016.
Industry analysts believe that the main driving force for profit growth is an increase in orders and an improvement in the gross profit margin of products. However, the concern is that raw material prices have risen sharply, squeezing profit margins.
Significant increase in foreign exchange earnings from exports
According to statistics, in 2017, Chinas 24 rubber machinery enterprises export delivery value of 1.836 billion yuan, an increase of 32.3B. By analogy, Chinas rubber machinery industry is expected to earn $360 million in total exports in 2017, up 20 percent from the same period last year.
According to the order of export delivery value, the top 10 are soft control shares, Tianjin Seixiang, Guilin rubber machine, Hua-ao tire equipment, Yiyang rubber machine, Beijing dedicated, Dalian rubber and plastic, Guilin rubber design, Fujian Sanming and Wuxi double Xiang. Among them, export growth rate of large enterprises including Fujian Sanming, Hua-ao tire equipment and Xiang technology. In particular, Hua-ao tire equipment, whose export delivery value accounts for 77% of the total sales, has become an international enterprise mainly exported.
Industry insiders believe that the increase in export foreign exchange is mainly due to Chinas tire enterprises in response to the United States "double reaction", in the United States, Southeast Asia and other places set up tire factories, the demand for rubber machinery formed a small climax. At present, the enthusiasm of Chinese tire enterprises to build overseas factories continues to ferment. According to preliminary statistics, more than 10 tire projects are being started or planned to start. In addition, the international tire market investment is stable, Germany mainland, Bridgestone tire investment projects, but also for Chinas rubber machinery export to lay a good foundation. Industry estimates, 2018 Chinas rubber machinery exports continue to be good, the degree of internationalization further improved.
(source: chemical Industry of China)