The Current Situation of Mining Machinery Industry

The current situation of mining machinery industry is mostly promising, but for the small and middle mining machinery companies, they meet very serious situation. The detailed different situation as follow:

1. The state-owned and private enterprises are harmonious.

First, the state-owned enterprises pay more attention to the major customers and big projects. With advanced technologies, rich talents, abundant capital and good reputation, there are three advantages for the state-owned enterprises: it can manufacture excellent equipment; it can make the whole project by making the most of comprehensive strength; it can take charge of large mining projects.

Second, the private enterprises cannot do like the state-owned enterprises. On one hand, compared with the state-owned enterprises, there is a large gap in capital, talents and relationship as well as limited technologies and production capability. On the other hand, large state-owned enterprises only prefer to those big projects.

All above reasons make such a condition and this situation will continue to next 15 years.

2. Few benefits lead to the vicious competition for the private enterprises.

According to the statistics, it showed that few benefits lead to the vicious competition for the private enterprises. In recent years, many enterprises have begun to make abundant investment in the mining equipment. Especially there are numerous medium-sized and small companies, which cause the dispersion of customer markets. At the same time, foreign products swarm into China, which also leads to the fierce competition and large pressure of mining equipment manufacturers.

A lot of disadvantages exist, such as similar products and vicious competition. In the competition, many small companies begin to imitate the existed products but without the quality. Actually, this is extremely irresponsible for the customers and brings bad impacts on the whole mining industry.

Actually, it is hard to do that. Many companies prefer to neglect it. There are two reasons. For one thing, they just pursue the short-term interests and neglect the long-term development. For another, they believe it is hard to carry on this plan, due to the capital, talents, time and patience. Thus, it is necessary to set up an example to encourage mining resource saving and comprehensive utilization. A good example in case is ITAO. ITAO was awarded "demonstration project of mining resource saving and comprehensive utilization" with a special fund 1.3 million by ministry of land and resources in April, 2011. And in 2012, ITAO was also selected to be one of test units of green mine.

In energy-saving, ITAO did very well. They invested a lot of money and talents to succeed to meet the requirements of customers and to be an example among the same trade.