Chinese Instrument Industry

  In 2009, the domestic industry still continue to beunprecedented support, so that domestic
at instrumentation golden period of development.manufacturers have excellent instrument broader
According to the China Instrument Industryspace for development.
Association latest statistics, in 2009 1 MayIn addition, an increasing number of foreign
instrumentation industry output value reached 104companies began to use in the domestic production
billion yuan, an increase of 28%; sales revenuesof commissioned processing methods, such as
reached 98.1 billion yuan, up 28.1%; profit of 68 billionSiemens, Honeywell and so are looking for domestic
yuan, up growth of 44.5%.enterprises, commissioned to produce their products.
China Instrument Industry Association DeputyDONG Jing Chen said that this instrument of domestic
Secretary-General DONG Jing Chen predicted that fullmanufacturing enterprises, is a good thing, you can
year 2007 growth rate of the instrument industry willentrust the production process, according to the
remain high, the minimum will be maintained at lastquality requirements of world-renowned enterprises,
year's pace, and even the growth rate may also beand constantly enhance their skills. The most typical
higher than last year 2 to 4 percentage points.example is the electromagnetic flowmeter as a
At this point, instrumentation industry has been highcommissioned Siemens units, the Beijing Sanyuan
for six consecutive years to keep the economycompany Rip-made electromagnetic flowmeter
running trend.products export to Europe has already begun.
"This is our last year's expected that someLow-value-added products is undergoing a
deviations. We had originally expected growth raterestructuring
will decline somewhat, but it now appears,DONG Jing Chen said the first half of 2009 meters
instrumentation industry, the growth rate has notthere is a clear feature of the industry, namely, low
slowed down. I think there are two main reasons,value-added product growth rate has declined
one country's economy is still running high; based onmarkedly. Electrical meter 1-5 month production
past experience, if GDP growth in more than 10%,growth rate is just 18.8%, significantly below the
the instrument industry, the growth rate of 26% ~industry growth rate of 28%.
30%. Second, the state's macro regulation andWatt-hour meter as a single dollar of export Guoyi
control on the instrument industry, the effect of acompetitive products, the development of the first
lag period, instrument often delivered late works,half also encountered obstacles: the growth of its
therefore, due to the macro-control policyexport value was only 19%, significantly lower than
instruments to reduce investment in the industry thisthe instrumentation industry average growth rate of
year will be much affected. "DONG Jing-chen says.exports. DONG Jing Chen believes that the current
However, despite the instrumentation industry inforeign market for the product's performance meter
2009 continues this trend of rapid development in theput forward higher requirements, the traditional
past, but also showed some new trends differentmechanical meter can no longer meet the needs of
from the past.foreign markets.
Foreign companies to adjust the investment strategyAt present, the domestic meter manufacturers have
in Chinabasically completed the transition to an electronic
Foreign-funded enterprises begin to change themeter. Electronic watt-hour meter mechanical meter
original instrument in the form of wholly-ownedoutput value has exceeded the output to become
investment-based. These changes are mainlythe mainstream product meter.
manifested in two aspects, first began to focus onDomestic businesses optimistic about the international
mergers and acquisitions of domestic outstandingmarket
manufacturing enterprises, and second, commissionedInstrument products in the first half of this year's
by the production ratio has been rising.rapid growth in export value, up nearly 38%. But the
The past one or two years, the outstandinginstrumentation industry's export value is not high,
foreign-invested enterprises and domestic enterprises2008 was only 6.8 billion. However, this situation might
extensive contacts, made the offer to the intention.change. DONG Jing-chen analysis, the domestic
However, not much success. So far, the domesticinstrument technical level and quality of products has
industry's leading instrumentation companies was onlybeen improving, in the mid-range product areas, cost
part of the company GE acquired Xinhua. However,performance has a certain advantage in the
according to informed sources believe that theinternational market also has a considerable
acquisition did not give Xinhua after the acquisitioncompetitive edge. At the same time, according to
has brought rapid development.Chinese Instrument Industry Association predicts that
In fact, the outstanding foreign acquisitions ofin 2008 the growth rate of domestic instrumentation
domestic companies is not easy. At present, theindustry may be slowing down. In this environment,
Government's efforts to support the instrumentationthe domestic instrument manufacturers will have
industry, more and more, only the first half of lastsights on the international market, by expanding
year and this year, the ministry has set up sixexports to compensate for declining domestic market
research projects on the instrument, governmentshare.
financial support more than 100 million yuan. This