Chinese Metal Working Market Provides Chances Amid Global Economic Woe
Resource from: CBCC Likes:2924
Mar 25,2009
Metal working players are now taking their prompt actions to struggle for survival amid the global economic woe. As automotive and machinery industries have been severely striking by the finical crisis and those economic developed regions like the United States and Europe are in
great trouble dealing with the economic turmoil, the business environment for industries like auto parts, iron and steel, raw materials and other
equipment are being endangered. In response to the hardship, industry players are likely to make their move to cut costs, or to seek new chances in new market, for instance, China.
Cost cutting measures to save enterprises
In response to the turmoil, the German lawmakers implemented the 32 billion euros fiscal stimulus plan for the next two years in November; the
French government unveiled an 26 billion euros plan to aid the housing and auto industries earlier this month; and the European Union leaders
have agreed on a 200 billion euros stimulus package to boost the flagging European economy.
However, enterprises are still facing various challenges bought by the economic downturn such as weakening demand and lowering profits. Many have already started restructuring to cut costs in response to the economic situation.
Tornos, the Swiss-based machine tool maker, announced on December 10 that it is cutting working hours at its Moutier site. The step will comprise short time working for four weeks in January, affecting nearly 90% of the company's staff. According to Tornos, if demand continues to stagnate at its current level, similar steps will probably be taken in April or October.
Swedish bearings maker SKF AB said on the same day that the company is cutting nearly 6%, meaning 2,500 jobs, of its work force worldwide to adapt to lower demand from the automotive sector due to the global financial crisis. Most of the cuts will be made in Europe and the United States. Tom Johnstone, SKF chief executive explained in a statement that ¨the negative development within the automotive business has accelerated during the fourth quarter leading to significantly weaker demand than foreseen". As the company's clients are notably reducing their production and extending their manufacturing shutdowns, SKF has no choice but to make this move to save estimated 250 million kronor a year.
At the same time, Hardinge Inc, an international provider of advanced material-cutting solutions, on December 11 announced actions taken in response to significantly lower order activity to date in the fourth quarter compared to the pervious year. The company said it will shut down manufacturing operations for two weeks over the holidays to the current lower order volumes. "The crisis in the functioning of the global financial markets appears to be affecting the ability of our customers to obtain and finalize credit and to make final order placement decision," said Richard L Simons, president and chief executive officer. "This market paralysis is making it very challenging for Hardinge, along with other companies, to determine what level of business activity to expect for the remainder of 2008, as well as during 2009."
Overseas tool builders show great interests in China
While the woe seems widely spreading, one opportunity should not be overlooked. Vice general manager of China National Technical Import &
Export Corporation (Europe branch), Feng Yi, told XinhuaNet during an interview: "The German manufacturing industry is now experiencing the
greatest adjustment in 15 years, especially in sectors related to the large-scared auto industry such as parts, machinery, machine tools, etc. Many enterprises which refused to cooperate with China in terms of technical exchange are now showing great interests in working with China, and this provides valuable opportunity for Chinese enterprises to enlarge its merger and acquisition activities in Germany."
Under this situation, some international companies are now paying more attention to the Chinese market, and have started attempts to strengthen
their bases in China. Sandvik, specialist in tools for metal cutting, machinery, mining and construction industries, has completed the construction of its first plant in Zhenjiang recently, and the construction of the second plant will be kicked off soon. The project is said to be the company's largest investment in China.
According to a report by People Daily Online, Lars Petterson, president and CEO of Sandvik, explained that the location for the new facilities is not only in consideration of the lower manpower costs in Zhenjiang; but the huge room for development in the country is weighted much higher by the company. With investment of US$ 346 million, the facilities will mainly produce hydraulic and instrumentation works as well as and heat exchanger tubing. As a long-term project, a large number of employees
have been sent to Canada, Sweden, etc, for professional trainings.
Coincidentally, the construction of Kennametal's production base locating in Xuzhou, Jiangsu province, has also started recently. The US$6.2
million project, occupying a space of 40 acres, will mainly produce mining machinery and is expected to reach an annual capacity valued at RMB
300 million. Local media reports pointed out that the new facilities will serve Kennametal as a major production base in Southeast Asia market
upon completion of construction.
()
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
Previous TMB to Add RMB 29.96 Million for Beijing Tianma
Next ZYS Signed a Cooperation Agreement with Shenyang Machine Tool (Pic)
Next ZYS Signed a Cooperation Agreement with Shenyang Machine Tool (Pic)
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
