Potential market in emerging machine tool

Industry Overview Scan    From the external market environment, is
    In 2008, China Aviation Industry Groupcurrently China's aviation industry are broad prospects
generated total revenue of 166 billion yuan, anfor international cooperation in the international
increase of 12.31%, with profits and revenue 7.2market has great potential. The practice of the
billion, an increase of 11.58%, with 40 billion yuan lessworld's civil aircraft production is a global
than in 1999 compared to quadruple growth.procurement, although the international financial crisis
    2009 China Aviation Industry Corporation 1 ~on China's aviation industry produced some of the
September total revenue and profit growth of 11.43subcontracted the production of a negative impact,
percent year on year and 34.85 percent growth ratebut the prospects for the development of
was higher than the central business and militaryinternational air transport industry remains positive, its
industrial average, the overall efficiency indexfast and convenient transport industry is also
increased 2.7 percentage points year on year.characterized by other can not be replaced. In
    addition, China's aviation products have the
    The aviation industry into the golden period ofcharacteristics of affordable, especially for developing
developmentcountries. To K8 trainer, for example, total exports
    "National long-term Science and Technologyfar more than 300 aircraft, carrying more than 150
Development Plan (2006-2009)" will include 16 largeaircraft orders, valued at more than 50 billion yuan to
aircraft project, major projects, established themeet the needs of enterprises within three years of
development of civil aircraft industry, to develop civilproduction, and the 60th anniversary of National Day
aircraft market and then as an aviation power and airmilitary parade, the global order showing the rapid
power in the basic development strategy, shows thegrowth trend.
country's development of large aircraft, civil aircraft,    
represented by the firm will and determination. 2008   China Commercial Aircraft Co., according to the
system of a major reform of China's aviationperson in charge of large aircraft program 3 to 5
industry, aviation and one or two groups merged intoyears, will invest 60 billion yuan, of which 300 billion
the China Aviation Industry Group, the newly formedfor pre-development costs and another 300 billion will
China Business Aircraft Ltd., it is the country tobe used for capacity building, to the final market, the
achieve this strategic vision for the major efforts andrelevant Overall investment will reach 2,000 billion
attempts.yuan, equivalent to a total investment of the Three
    Gorges Project. Such a large scale of investment into
    Civil aircraft industry will be the starting point inChina's aviation industry is also not a whole, as well as
our country to form a new industry, this emergingundertake the task of large transport investments in
industry has enormous potential for deposits andthe China Aviation Industry Group, as well as for
business opportunities. The Boeing Company in 2009,military aircraft and a variety of general-purpose
according to the latest forecast, China's need foraircraft investment costs. A new rapid development
new airplanes over the next 20 years, 3770, theof the tremendous potential for development of the
total value of 400 billion U.S. dollars. With our ownindustry, its scale of investment should be enormous,
intellectual property rights ARJ21-700 regional jet, soand recall more after China entered WTO scale of
far although the evidence in the airworthiness stage,investment in the automobile industry, nor hard to
but there are orders for 240. In fact, large aircraftarrive at that conclusion.
and regional aircraft and civil aircraft category is just    
a part of civil aircraft category includes not only the   Strong demand for high-precision machine tools
large trunk of the passenger and freight transport    Aircraft was manufactured in the human so far
and regional aircraft business class aircraft, but alsothe most complex and high-tech products. A large
includes widely used in industry, agriculture, forestry,aircraft from 300 to 5 million of parts, and is well
fisheries, mining, construction industry and manyknown, their parts and approximate the complexity
other fields as well as health care, disaster relief,of the harsh quality requirements, to absorb a large
meteorological exploration, marine monitoring,number of high-quality high-tech equipment involved.
scientific experiments, remote sensing, mapping,    
education and training, culture, sports, business flights,    Demand for large aircraft, machine tools, first,
private aviation, tourism and other areas of commonbecause part of the emerging industries, related to
classes of aircraft. In these areas, the demand forChina's machine tool industry in areas not previously
aircraft application of the rapid economicbeen involved in giving a new machine tool industry
development with the growing application areas ofdevelopment opportunities. Second, the large aircraft
aircraft will be further expanded.because of their "big", the original part of the
    manufacturing equipment can not meet their "big"
    Driven by market demand, at present, thesize requirements, which makes large aircraft
results of independent innovation of China's aviationmanufacturing equipment with the replacement
industry is also very productive. With F-10, F-11,requirements. Third, the large aircraft including the
Xiaolong, flying leopard, Falcon, Eagle, K8, and straightentire area of civilian aircraft, because of its
8, WZ-10 as the representatives of the newcommercial nature, in security, economy,
advanced military trainer and armed helicopters haveenvironmental protection, comfort, seaworthiness,
become the main force of our army's equipment.etc. will have their own specific requirements and
ARJ-700, a new boat 60, the new boat 600, such asstandards, the original part of the manufacturing
feeder aircraft Xinzhou-700, as well as straight nineequipment will not be able to meet their part of the
straight 11 and EC120 helicopters, such asprocessing of technical requirements. Fourth, along
multi-purpose research and development madewith materials, industrial development, more and more
significant progress in the manufacturing sector havenew materials, high-tech composite materials used by
been or are about to market. These results for theaircraft manufacturers need to adapt with the
development of China's aviation industry has laid amanufacture of equipment response. Fifth, to
solid foundation.enhance safety and reliability, the total number of
    design ideas to minimize the parts used under the
    Meanwhile, the aero-engine development, andoverall manufacturing technology is the development
manufacturing bottlenecks have also made a majortrend of the world's aviation industry is undoubtedly
breakthrough. Kunlun, Qinling Mountains, the Taihangthe variety of machine tools, functionality and
and other aero-engine of the latest research results,performance of proposed new requirements. In
have been or will be the end of a long-termaddition to aviation industry itself is a direct demand
constrained bottleneck in the development of China'sfor machine tools, as with other areas such as
aviation industry, domestic use of domestic aircraftmachinery, electronics, materials, metallurgy,
engine era has arrived. Although aero-engine aircraft,instrumentation, chemical and other industries closely
a component, but it is "crown jewel." The technologyrelated to the rise of aviation industry will also lead to
breakthrough in the development of China's aviationthe rise of industry needs associated with the same
industry are of decisive importance.pairs of machine tools industry, bringing new
   opportunities for market expansion.