Rongsheng heavy industry new construction machinery factory officially put into operation

On June 28, China Rongsheng Heavy Industry Group Holdings Co., Ltd. announced that the new construction machinery factory in Hefei Economic and Technological Development Zone was officially put into production, and the first excavator was successfully put off the production line on the same day. With the launch of the new plant, in the future, as the growth point of new business, construction machinery will also play an important role in the group's diversified development and strengthening RMB business strategy.

On the 28th, the first excavator slowly drove down the production line, which also means that China Rongsheng heavy industry construction machinery plate has entered a comprehensive development stage.

The new factory in Hefei is one of the production base projects of China Rongsheng heavy industry construction machinery. The production base is listed as the key construction project of "861 action plan" by Anhui provincial government and the key promotion project of "12th Five Year Plan" by Hefei municipal government. The excavator project covers an area of 850 mu. According to reports, the construction of the new plant also created a new speed of fusion. From November 2010 to June 28, 2011, the plant was put into production. It took only more than seven months. The "fusion speed" shortened the average 18 month construction period of the general assembly workshop to six months, creating a miracle in the engineering construction of the same industry.

At the beginning of the founding of China Rongsheng heavy industry, it was recognized that the risk of shipbuilding industry fluctuated greatly with the economic cycle, and diversified profit growth was a good way to resist systemic risk. According to this strategy, and in response to the industrial planning policy of Anhui Province to build Hefei into the "capital of construction machinery", in March 2010, China Rongsheng heavy industry registered and established "Rongsheng Machinery Co., Ltd" (Rongsheng machinery) in Hefei, mainly engaged in the manufacturing and sales of construction machinery. 10% of the planned IPO Financing will be used in the construction machinery sector

In 2010, through the acquisition of Hefei Zhenyu, Rongsheng machinery currently produces 16 kinds of hydraulic excavators and two kinds of hydraulic crawler cranes. While building a new production base, Rongsheng machinery also entered the pre development stage, changing the original direct sales mode outside the province to the agency mode, and expanding to 10, and strengthening comprehensive cooperation with financial companies. Through the acquisition of quanchai group, the construction machinery sector obtained a stable supply of engine parts. With the production of the new plant, Rongsheng machinery will enter the stage of comprehensive development, and the new production base will have the production capacity of 30000 excavators in the future.

The market demand for construction machinery is expected to continue to increase as the Chinese government increases investment in infrastructure construction and gradually implements a series of policies to promote the development of the central and western regions. Su Zimeng, Secretary General of China Construction Machinery Industry Association, revealed at the "2011 China Construction Machinery Industry Development Strategy Forum" recently that the 12th Five Year Plan of construction machinery industry had been reported to the relevant departments of the state before this year's "May 1" and was expected to be released in July. He pointed out that during the "12th Five Year Plan" period, the sales revenue of construction machinery industry is expected to reach 900 billion yuan, with an average annual growth rate of 17%. The export target is set at 26 billion US dollars, among which the sales volume of excavators is expected to rise to 250000 from nearly 180000 in 2010.

At the same time, the development of construction machinery business will also help China Rongsheng heavy industry to develop RMB business and effectively resist exchange rate risk. Chen Qiang, President of China Rongsheng heavy industry, said the company will vigorously expand its shipbuilding and construction machinery businesses in China due to the continuous appreciation of the RMB against the US dollar.

At present, a large part of China Rongsheng heavy industry's orders are from overseas, so most of the shipbuilding contracts are settled in US dollars, while the cost is accounted by RMB. How to effectively control the exchange rate risk has always been the focus of China Rongsheng heavy industry. At present, China Rongsheng heavy industry has been consciously increasing RMB settlement business. It is expected that with the comprehensive construction machinery In the future, the group's income sources will also show a trend of diversification, and the income of RMB and USD will be more balanced.