Abstract Japanese media said that Chinese demand is supporting the performance of Japanese companies. Japan's factory automation equipment and robotic integrated manufacturer FANUC released a forecast on April 27, the consolidated operating profit for the fiscal year 2017 (as of March 2018) will increase by 1% year-on-year, facing...
Japanese media said that Chinese demand is supporting the performance of Japanese companies. Japan's factory automation equipment and robotic integrated manufacturer FANUC released a forecast on April 27th that the consolidated operating profit for FY2017 (as of March 2018) will increase by 1% year-on-year, and the industrial robot business for China has increased its performance. . In addition, the expansion of public investment in China is also good for construction machinery manufacturer Komatsu. Although Komatsu's operating profit for the fiscal year 2017 (US accounting standards) is expected to decline by 10% year-on-year, if the cost of acquiring US companies is excluded, the profit actually increases by 12%. In the context of increased uncertainty in US demand, the situation of relying on China may be strengthened. According to the "Japan Economic News" website reported on May 5th, "the Chinese market is hot", at the financial report briefing on the 28th, the Chairman and CEO of FANUC, Mr. Inaba, emphasized this. In order to mass-produce a new generation of smart phones from Apple in the United States, electronic product foundry services have increased their investment, and the shipment of cutting machines is rapidly expanding. While smartphone upgrades can lead to temporary increases in demand, in China, the need for factory automation to respond to structural changes such as rising wages is also increasing.
According to reports, especially industrial robots are in short supply, and FANUC has decided to build a new factory in Ibaraki Prefecture, Japan. By August 2018, the capacity of 6,000 units per month will be increased to 9,000 units. According to the Japan Machine Tool Industry Association, the amount of machine tool orders for China in March was 36.7 billion yen (about 2.255 billion yuan), an increase of nearly three times. Fana, president of Fanuc, believes that "the recovery of China's manufacturing industry will continue."
“Supported by the growth of public investment after the second half of 2016â€, Guishan Zhefu, the director of Hitachi Construction Machinery, expressed such sales for construction machinery in China. Hitachi Construction Machinery's sales in China in fiscal year 2016 increased by 33% year-on-year to reach 71.5 billion yen (about 4.394 billion yuan - this net note). Komatsu’s sales of construction machinery and vehicles to China increased by 40%.
Even during the Spring Festival, which has passed the peak demand season, sales to China have remained strong. For the 2017 fiscal year, Komatsu predicts that sales to China will increase by 3% year-on-year to 100 billion yen (about 6.1 billion yuan). Hitachi Construction Machinery is forecast to grow 4% to 74.1 billion yen (about 4.554 billion yuan). “It is estimated that the strong demand will continue until the fallâ€, said Komatsu’s deputy president, Fujiko.
The report said that although China's demand is recovering, the market for construction machinery is still shrinking. The demand for hydraulic excavators in China is less than 1/3 of the peak. In the machine tool industry, there are concerns that market demand may fall after the demand for smartphones. It can be said that it is still too early to be optimistic about China's prospects.
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