On June 28, China rongsheng heavy industry group holdings limited announced that the new construction machinery factory in hefei economic and technological development zone was officially put into operation, and the first excavator also went offline.With the production of new plant, the future of engineering machinery as the growth point of new business will also play an important role in the diversified development of RMB business strategy.
On the 28th, the first excavator from the production line slowly, also means China rongsheng heavy industry engineering machinery plate into the full development stage.
New factory is located in hefei is China rongsheng heavy engineering machinery plate production base project, one of the production base of anhui provincial government as its key "action plan 861" construction projects, hefei government "twelfth five-year" plan key projects, excavator project covers an area of 850 mu.According to introducing, the construction of the new factory also created the new speed of rongsheng, officially starts from November 2010 to June 28, 2011, factory production, more than seven months of the time, "rongsheng speed" will be industry average 18 months of final assembly workshop construction cycle reduced to six months, created a miracle in the engineering construction industry.
At the beginning of its establishment in China rongsheng heavy industries, is to realize the risk of shipbuilding industry along with the economic cycle fluctuation is bigger, the diversity of development of high value-added industries, diversified earnings growth is against systemic risks.According to this strategy, and for the response to hefei in anhui province as of "mechanical engineering" industry planning policies, in March of 2010, China established in hefei rongsheng heavy industries "rongsheng machinery co., LTD." (rongsheng machinery), mainly engaged in the manufacture and sale of construction machinery business.In the plan, 10% of the listed financing will be used in the construction machinery sector
In 2010, with the acquisition of hefei zhen yu rongsheng machinery production of 16 kinds of hydraulic excavator and two kinds of hydraulic crawler crane, at the same time of building a new production base, rongsheng machinery also entered the preliminary stage of development, change the original fujian association of foreign languages and the direct selling mode to the proxy pattern, and extended to 10, and strengthen comprehensive cooperation with financial companies.Through the acquisition of the whole wood group, the engineering machinery plate has obtained stable engine parts supply.With the production of the new plant, rongsheng machinery will enter the full development stage, and the new production base will have the production capacity of 30,000 excavators in the future.
Market demand for engineering machinery is expected to continue to grow as the Chinese government increases infrastructure spending and gradually implements some policies to promote development in the central and western regions.China construction machinery industry association secretary-general Su Zimeng at the recent "BBS" 2011 China construction machinery industry development strategy on, according to the engineering machinery industry "twelfth five-year" plan has been reported to the relevant state departments before this year "51", is expected to be released in July.He pointed out that during the "twelfth five-year" construction machinery industry is expected to sales income will reach 900 billion yuan, an average annual growth rate of 17%, exports of target is set at $26 billion, including excavator is expected in 2010, sales of nearly 180000 sets of up to 250000 units.
At the same time, the development of the engineering machinery business will also help China rongsheng heavy industry to develop its RMB business and effectively resist exchange rate risk.Chen qiang, President of China rongsheng heavy industries, said the company will expand its shipbuilding and engineering machinery business in China as the yuan continues to appreciate against the dollar.
Rongsheng heavy industries in China at present, quite a few are from overseas, so most of the shipbuilding contracts are in U.S. dollars, while the cost by RMB business accounting, how to effectively control the exchange rate risk has always been the focus of China rongsheng heavy industries, at present China rongsheng heavy industries have been consciously increase RMB settlement business, is expected as the engineering machinery in full swing, group future source of income will also showed a trend of diversification, the yuan and dollar income will be more balanced.