China's incipient excess capacity crisis - stranded castor Castor, industrial casters manufacturers: big wheel industry!

Spring of this year, production of caster wheel upsurge cooling rapidly. Changhong, oakes compressor project ran aground at the same time, the market marketing has alleviate contradictions, last year and an oversupply situation. Castor market supply and demand relations big subversion. It is reported, 2005 freeze annual domestic castor production capacity increased by about 10 million, this year there will be a glut. By the end of the year, castor market overall inventory reached nearly 4 million units, 1. 3 million sets of much higher than the same period last year level. The personage inside course of study thinks, with some domestic compressor project completed and put into production, panasonic, sanyo, LG, mitsubishi electric, daikin compressor project will soon enter the production stage. At the appointed time, the capacity of the whole castor compressor industry will break through 90 million, and accounted for 75% of the world's Chinese castor compressor production will reach 70 million units in 2006, the supply and demand will change. Recently, changhong, oakes internal news respectively, changhong and Taiwan east yuan group invested 3 million compressor production project has been suspended, oakes and teco group the production capacity of 3 million sets of compressor factory construction also ran aground. The personage inside course of study thinks, the compressor capacity expansion, castor and compressor inventories, castor domestic compressor & other; Throughout the demand &; Time has come to an end, replaced by structural imbalances - in compressor industry - - - - - - Large compressor to keep strong demand, miniature compressor market is saturated. Not long ago, Taiwan east yuan group with the orcs had reached a preliminary intent, the two sides will jointly invested 200 million yuan, annual output of 3 million units in ningbo investment compressor factory. The new factory will be in the third quarter of 2006 and put into production. The partnership, the main reason or compressor in castor production costs account for larger proportion, east yuan in the domestic also have buuilt production bases in guangdong and jiangxi. Self-sufficient in compressor production, not to the orcs or east yuan, would be beneficial in terms of cost competitiveness. However, oakes, a spokesman for Huang Jiangwei, told the reporters that the company compressor project has stopped, he said the main reason is that the compressor tight supply problems no longer exist. Changhong castor company general manager li jin, which were also delivered last year told our reporter, changhong has cooperation with east yuan, invest 1. 5 billion yuan to build castor compressor production base, and put into production at the beginning of next year can achieve annual capacity of 3 million units. “ By then, changhong will become the first domestic all parts can be produced castor manufacturers. ” Li jin said last year, $1. 5 billion in late April have by China agricultural bank, China minsheng bank injected changhong electric appliance co. , LTD. , account, used for construction of the compressor production base. But a few days ago from changhong trundle news from the inside, said changhong castor compressor project has been temporarily suspended. However, changhong spokesman Liu Haizhong noncommittal about the matter, changhong castor also refused to publicly. “ 9-2004 In November, and 3-2005 May, castor exports in good condition, but in May, the heat is light. ” A castor, head of the enterprise analysis thinks, although exports of castor to later began to surge in March, but after castor enthusiasm for purchasing the compressor is high: & other; Because of export demand for export products preparation; Since 2004, on the other hand, the compressor products is very tight, some enterprises with the first started hoarding compressor. So in June 2005, before the compressor sales is good, in fact is the early release of production capacity. ” “ Since last year in late June, production began to light off. Before last year in June, the production of the momentum has been very good. ” Guangdong beauty cheese a staff told reporters, frozen in 2005 annual compressor sales and some is not the same as the previous two years. “ In previous years, usually in July after light a little, but this year's off-season in advance. ” This personage analysis, castor export end ahead of schedule, and there are a large number of inventory related foreign market channels. And the largest output in our country listed company huayi compressor has released its 2005 results before compression pre announcement, points out that the company full-year net profit in 2005 will be a loss of 30 million yuan, and net income of 7. 73 million yuan in 2004. From the point of the relevant state departments of statistics, the current compressor products in the domestic sales accounted for 92. Less than 8% 1%, the export products. “ Localization, large-scale domestic industrial policy to make the next five years to keep large compressor demand, but to the production of miniature compressor enterprise will bring huge pressure to operate. And the average power with reciprocating piston compressor and miniature compressor products production capacity is greater than the market needs. ” A castor domestic company executives said. The person said, while keeping the production and marketing of whole industry high-speed growth, but the overall look, overcapacity, money is tight, receivables remains high, some enterprises, asset-liability ratio is higher, inadequate production, raw material prices, disorderly competition, etc. , bring great pressure. And about 30% for two consecutive years of rising costs, affect the enterprise reinvest, and it affects the whole industry development. This article from: