Panoramic analysis of the development of China's mining machinery industry in 2022

First, mining machinery industry overview

1. Definition and classification of mining machinery

Mining machinery is a special equipment for mining and processing solid minerals and stone, mainly including well construction equipment, mining and drilling equipment, mine lifting equipment, crushing and grinding equipment, screening and washing equipment five categories. Mining machinery serves many important basic industrial sectors such as ferrous and non-ferrous metallurgy, coal, building materials, chemical industry, etc. The sand and stone aggregates produced and processed are widely used in the construction, transportation, water conservancy and other infrastructure construction fields. Therefore, mining machinery reflects the level of scientific development and comprehensive utilization of national mining resources to a certain extent, and has an important impact on the development of the national economy.

2, mining machinery industry chain

The upstream products of mining machinery manufacturing industry are mainly steel, large castings, motors, bearings, frequency converters, plates, profiles, etc., of which large castings, steel, profiles and other parts with steel as raw materials account for the total cost of raw materials is higher, so the steel industry has a greater impact on the industry.

Mining machinery downstream application field is more extensive. With the continuous advancement of China's industrialization and urbanization construction and the continuous investment in infrastructure construction such as construction, transportation and water conservancy, the demand for stone and solid minerals in basic industries such as sand and stone building materials, metallurgy and coal continues to grow, which has led to the rapid development of the mining machinery market.

(1) Upstream steel industry development analysis

Steel is an essential material for national construction and the realization of the four modernizations, and it is widely used and has many varieties. China is the world's largest steel producer. In 2022, the country produced 1.013 billion tons of crude steel, down 2.10% year on year; 864 million tons of pig iron was produced, down 0.80% year-on-year; It produced 1.340 billion tons of steel, down 0.80% year-on-year.

In recent years, affected by the national macroeconomic regulation and economic cycle, the domestic steel market price has rebounded since 2016, and the overall market has shown a shock rise. Especially after the outbreak of the new coronavirus, the supply structure of global commodities and materials has undergone major adjustments, and the changes in the supply and demand relationship have led to a significant rise in the market price of steel in the second half of 2020 and remain high, and the fluctuations in steel prices have made relevant enterprises face the challenge of whether they can effectively transfer production costs.

On the whole, the direct upstream industry of mining machinery belongs to the market highly mature industry, the production technology is more stable, the supply is more adequate, and the product quality meets the needs of the industry, so the raw materials and parts procurement needs of the industry can be fully guaranteed, and there is no upstream supply shortage affecting production. In addition, the upstream industry is a typical perfect competition industry, with low conversion cost, fierce competition in the industry, stable supply, bargaining power is not high, so mining machinery enterprises have a certain bargaining power for the upstream supply chain, which provides an important guarantee for their own cost management.

(2) Development analysis of downstream mining industry

Affected by the rising prices of international energy and major mineral products, as well as the policy of ensuring supply and stable prices of important raw materials and primary products such as coal and iron ore, China's fixed asset investment in the mining industry has continued to grow, and it has also boosted the enthusiasm of private enterprises to invest in the mining industry.

Fixed asset investment in mining continued to grow. In 2022, fixed asset investment in China's mining industry continued the trend of growth in 2021, increasing by 4.5% year-on-year. In the mining industry, investment in fixed assets, affected by the energy and important livelihood commodities guarantee policy, in 2022, the coal mining and washing industry, the ferrous metal mining industry fixed assets investment increased significantly, up by 24.4% and 33.3% respectively; Fixed asset investment in non-metallic and non-metallic mining and selection industries also grew by more than 8%, up 8.4% and 17.3%, respectively.

Affected by factors such as the repeated domestic COVID-19 epidemic and insufficient market demand, the growth rate of some mineral products has slowed down or decreased, but from the perspective of the whole year, the production of mineral products is generally stable. In 2022, the production of other major mineral products continued to grow, except for the reduction in the output of minerals related to infrastructure construction such as crude steel and cement.

In 2022, the growth rate of coal production accelerated, the annual output of 4.50 billion tons, an increase of 420 million tons, a year-on-year increase of 9.0%, a record high. Large enterprises, especially central enterprises, have played an active and leading role in completing more than 25 percent of China's coal supply.

3, mining machinery industry business model

The mining machinery industry has the characteristics of high production technology requirements, difficult R & D and innovation, and strong professionalism. In order to achieve reasonable allocation of resources, medium and high-end manufacturers have basically formed a business model of "independent research and development, core self-production, and some external mining", that is, independent technology research and development, program and product design, core component production and machine assembly. Other non-core components and non-core processes are completed through external procurement and outsourcing processing.

Mining machinery industry product equipment has a certain non-standardized characteristics, therefore, the industry enterprises generally adopt the "sales to order production, production to order" business model, at the same time according to the price changes in the raw material market and product equipment maintenance and update cycle reserve the appropriate raw materials and finished products in advance.

The sales of mining machinery industry are mainly direct sales, supplemented by agent sales, and larger enterprises set up offices in the main sales areas to carry out sales, training, after-sales service and other work directly for end customers.

4, China mining machinery industry development history

China's mining engineering machinery production started in the 1950s, the development has been more than 70 years, beginning from the mapping imitation start, manufacturing enterprises from the initial Luoyang mining machinery factory, Taiyuan heavy machinery factory, Liugong, Xiagong, Hengyang nonferrous metallurgical machinery Factory, Fudigging and GUI mine and other state-owned enterprises, To all industries (mining, construction, forestry and municipal, etc.) complete machine and parts manufacturing enterprises. China's mining equipment after a hundred years of development, under the leadership of the Communist Party of China, has developed from the era of "shoulder to shoulder" to the era of automation and intelligence.

Period of Republic of China

According to historical data, China's mining industry first used mechanical equipment for production in 1927, when a coal mining company named Minsheng was established in Xin 'an County, Henan Province, the company introduced the more advanced steam equipment at that time, the introduction of new equipment made the company's No. 1 large well daily output increased to 300 tons, for the old China at that time, This is a relatively mechanized mine.

The early days of the People's Republic of China

According to incomplete statistics, when the People's Republic of China was founded, local governments received a total of about 40 coal mining enterprises, 200 mines and a few open pit mines, but the mining facilities are simple, backward technology, coupled with the destruction of the war, has been riddled with holes.

During the "First Five" period, large-scale economic construction began, the state formulated a list of 156 key projects, and a number of machinery factories involving mining equipment were established, such as the first heavy machinery factory and Luoyang Mining Machinery Factory.

In January 1954, China's first mine machine factory was officially approved by the State Planning Commission to settle in Luoyang, Henan Province, known as the "Nine dynasties ancient capital". In 1955, the construction project of Luoyang Mine Machinery Factory began, and the workers carried forward the spirit of hard work and hard work under the leadership of the Party, and completed the construction task of the factory in a relatively short time. In 1958, Luoyang Mining Machinery Factory developed China's first 2.5-meter-diameter double-barrel hoist, which got rid of the long-term dependence on foreign equipment and filled the gap in the history of mining machinery manufacturing in China.

On May 21, 1961, Taiyuan Heavy Machinery Factory successfully tried to produce China's first 4 cubic meter electric shovel, which has been used in Pingzhuang Coal Mine in Chifeng, Inner Mongolia. In the history of mining machinery and equipment, Taiyuan heavy machinery factory has an irreplaceable position. In July 1965, Taiyuan Heavy Machinery Factory successfully developed China's first 4 cubic meter walking long arm electric shovel on the basis of the original model; In the middle of June 1974, China's first mining long arm shovel was successfully developed, with the arm length of 23.3 meters, weight of 338 tons, and digging capacity of 400 cubic meters per hour. In June 1977, the first WK-10 10 cubic meter electric shovel was successfully trial-produced in China. In 1984, he successfully developed the second generation product WK-10A type electric shovel, which won the second prize of National Science and Technology Progress in 1985.

In the early 1970s, China's mining industry experienced many advantages such as the safety and efficiency of comprehensive mechanized mining abroad.  At that time, under the situation of foreign exchange shortage, China introduced 100 sets of equipment from abroad at the price of up to 10 or 20 million US dollars per set of equipment. Later, China produced 500 sets of these equipment according to the import, and added them to coal mining enterprises. At this point, China's mining machinery manufacturing system has been preliminarily established.

After the founding of New China, manual mining has become a history, mechanized mining opened a new era in China's mining history.

'80s and' 90s

After the Third Plenary Session of the 11th CPC Central Committee, China entered a new period of reform and opening up and economic construction as the center. The development level of mining equipment has since embarked on the fast track of healthy development. The first is to restore and establish a good scientific research and production order, so that equipment research and development toward normal, at the same time began to vigorously introduce foreign advanced technology and equipment. According to statistics, in the field of coal mines, from the early stage of reform and opening up to 1987, there were 19 fully mechanized mining teams in the country, and the degree of mechanization was 29%, and fully mechanized mining technology gradually entered a mature stage. Since then, nearly 10 years, one million tons of fully mechanized mining teams continue to emerge, by 1996, the annual output of more than one million tons of mechanized mining teams increased to 72.

During the "Seventh Five-Year Plan" period, under the leadership of the Party, China's mining equipment manufacturers began to introduce, digest, absorb, test, verify and transform foreign technical equipment. In 1986, in order to meet the needs of domestic coal mine construction, Taiyuan Heavy Machinery Factory began to cooperate with foreign companies to produce 2300XP electric shovels. The working weight of this model is 728 tons, the bucket capacity range is 16.8~34.4 cubic meters, and the standard bucket capacity is 19.11 cubic meters.

During the Eighth Five-Year Plan period, China continued to deepen reform and opening up and accelerate modernization. China's mining equipment enterprises seize this favorable opportunity and successfully develop a number of advanced mining equipment. In 1994, the first GPJ60/3 pressure filter manufactured by Shandong Energy Heavy Loading Group Laiwu Coal Machinery Company passed the identification of the former Ministry of Coal Industry, making China the second country capable of producing pressure filters after Germany. In January of the same year, in order to meet the needs of market-oriented changes, Luoyang Mining Machinery Factory agreed to join CITIC and set up CITIC Heavy Machinery Co., LTD. At this point, Luoyang Mining Machinery Factory has taken a key step in the process of establishing a modern enterprise system and corporatization reform, and has entered a new stage of development. This is the first major change in the 30 years since the establishment of Luoyang Mining Machine Factory, which has completed the historic transformation from factory system to corporate system.

Since the 21st century

With the continuous investment in infrastructure construction and real estate construction in the 21st century, the mining machinery industry has great opportunities for development, and the industry has accumulated a lot of wealth. At the same time, in this process, the mining machinery industry also pays more attention to the remanufacturing of foreign technology, relying on the huge domestic infrastructure investment and real estate investment, the mining machinery industry also has a certain accumulation of technology. China has become a major producer of mining construction machinery.

With China's entry into the World Trade Organization, mining equipment manufacturing enterprises have opened the restructuring mode in order to adapt to the international competition environment. Most equipment manufacturing enterprises are actively promoting joint restructuring and mergers and acquisitions of core businesses. As a result, China's mining equipment manufacturing enterprises in the scale of production, research and development capabilities and product supporting capabilities have been greatly improved. For example, China Coal Equipment Company through the merger and reorganization of Fushun Coal Mine Motor Manufacturing Co., LTD., Shijiazhuang Coal Mine Machinery Co., LTD., Xi 'an Coal Mine Machinery Co., LTD., to enhance the "three machines and one" complete R & D and manufacturing capabilities; Shanxi Province, with Taiyuan Heavy Machinery Group as the leader, integrated Taiyuan Mining Machinery Group, Shanxi Coal Mining Machinery Manufacturing Co., LTD., and other eight enterprises, jointly established the "Shanxi Coal machinery complete equipment complex", focusing on the development of fully mechanized coal mining complete equipment. Although other mining equipment enterprises have not taken the road of reorganization, they have gradually established a relatively complete scientific research and development design system and production base on the original basis, and have successfully developed more than 100 new efficient mining machinery and equipment through the introduction of advanced technology and equipment, so that the overall level of China's mining equipment has been significantly improved.

Since 2010, with the promulgation and implementation of the "State Council on accelerating the revitalization of the equipment manufacturing Industry", the technology of mining machinery has begun to move toward independent design route, at the same time, a large number of excellent enterprises began to emerge, such as Xugong Group, Sany Heavy Industry, etc., these enterprises have achieved breakthroughs in large machinery design. It is also a major breakthrough in China's mining machinery industry.

During the 40 years of reform and opening up, China's mining equipment manufacturing industry has achieved parallel progress in traditional and high-end, domestic and foreign multiple fields by increasing research and development investment, ensuring the continuous breakthrough of cutting-edge technology, and promoting the transformation and upgrading of enterprises.