Development Road of Hydraulic Seal Industry in China

It is reported that key parts are highly profitable, and China’s construction machinery companies can only give this cake to people because of their immaturity. Especially the lack of high-end hydraulic components in construction machinery has become a hidden problem in the development of the construction machinery industry.

At present, hydraulic components used in excavators over 20 tons in China are basically controlled by a company, which is Japan Kawasaki Corporation. In March 2011, the earthquake in Japan. Thousands of miles away from the earthquake in Dongzheng, it has affected the domestic excavator manufacturers.

From March to April of that year, the supply of hydraulic components from Japanese excavators was interrupted, and the domestic excavator OEMs that mainly depended on hydraulic components imported from Japan were forced to slow down the production pace, and some could only stop work. Since Japan’s Kawasaki Corporation’s principle of supply in the event of an emergency is first domestic and then foreign, some Chinese OEMs have to find sources everywhere in order not to affect the progress of production. In particular, those excavator plants that have just been launched in the new round of capacity expansion are not satisfied with their supply requirements because they are not regular customers of Kawasaki. It is understood that Rongsheng Heavy Industry is one of them. Because you cannot buy Kawasaki's hydraulic parts, you can only find another way out.

At this point, the brand Jiangshan began to surface.

Jiangshan has two brands, namely Yantai Jiangshan Hydraulic Machinery Co., Ltd. and Jiangshan Hydraulics (Korea) Co., Ltd. (hereinafter referred to as Jiangshan). Xu Zhihuan, the chairman of Jiangshan, although there are some Korean styles in his appearance and style of work, he is a truly Shandong native. In the early years, he had been importing and exporting mechanical products for many years. He later invested and built factories in South Korea, mainly producing hydraulic components and other key components that urgently needed to be imported, and then shipped them to China for sale.

Rongsheng could not buy the hydraulic parts of Kawasaki, and Jiangshan sold the hydraulic parts produced in South Korea to them. Su Zimeng, secretary general of the China Construction Machinery Industry Association, recently returned from a visit to a South Korean factory in Jiangshan. In an interview with the China Industry News, he said that the total sales volume of hydraulic components in Jiangshan last year was between 400 and 500 units.

Jia Xiaowen, secretary-general of the China Construction Machinery Industry Association's Engineering Machinery Components Subcommittee, praised Jiang Shan: In the past two years, domestic hydraulic components companies have made great efforts to replace imports. Some OEMs have joined the ranks of developing key parts and components, and some professional hydraulic parts factories have also increased their research efforts. For enterprises like Jiangshan, the Chinese invest and set up factories abroad, which is also a way for the development of national industries.

Due to the gradual development of China's construction machinery industry and the guidance of a series of industrial policies, the liquid-gas tightness industry has experienced rapid growth in recent years.

According to incomplete statistics, in 2011 China's liquid and airtight industries achieved a total industrial output value of 77.271 billion yuan, an increase of 21%. The hydraulic industry completed 43.62 billion yuan, an increase of 18.47%; the pneumatic industry completed 15.046 billion yuan, an increase of 29.60%; sealed industry completed 18.605 billion yuan, an increase of 23.95%.

Of the 125 key contact enterprises in the liquid airtight industry, 64 were in the hydraulic industry, 6 in the hydraulics industry, 40 in the pneumatic industry, and 15 in the sealing industry. The comprehensive index of economic efficiency was 233.56, which was more than 226.44 in the same period of last year. The total industrial output value of these key linking enterprises was 33.424 billion yuan, an increase of 12.94% over the same period of last year. The output value of the hydraulic enterprise was 14.171 billion yuan, an increase of 7.72% over the same period of last year. The output value of the hydraulic enterprise was 533 million yuan, down 4.77% year-on-year; the output value of the pneumatic enterprise was 8.639 billion yuan, an increase of 25.12% over the previous year; the output value of the sealed enterprise was 7.320 billion yuan. 11.14% growth.

The development prospects of the liquid gas tight industry have also attracted a lot of investment both inside and outside the industry. According to incomplete statistics, in the last two years, the investment in the liquid gas-tight industry was not less than 30 billion yuan, of which the investment in hydraulics for construction machinery and other host industries accounted for about 50% of the total investment. Many well-known construction machinery companies, such as Sany Heavy Industry, Liugong, Longgong, Zoomlion, and Shandong Changlin, have invested or merged and restructured hydraulic companies.

However, the localization of high-end hydraulic parts cannot be completed in the short term, but it is a long-term goal.

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