Apr. 17, 2009 (Xinhua News Agency) -- China electrical equipment industry expected to grow 20 pct in 2009
China electrical equipment industry expected to grow 20 pct in 2009
BEIJING, April 17 (Xinhua) ? China's electrical equipment industry is expected to continue the rapid development typified by previous years, with major economic indicators, including output, sales and profit, hopefully up 20 percent, according to the China Electrical Equipment Industrial Association (CEEIA).
The association also warned about possible future challenges, since predicting just when the global economy will pick up momentum is anyone's guess.
-- China's electrical equipment industry faces chances of development
A series of government policies for boosting domestic demand have brought rare chances of development for the electrical equipment industry. Among ten measures to promote stable and rapid economic development, many projects, including railway construction, housing projects, new rural construction and rural and urban power grid reconstruction, involve the use of electrical equipment.
According to statistics by CEEIA, China's three major electrical equipment manufacturers including Shanghai Electric (601727.SH, 02727.HK), Dongfang Electric (600875.SH, 01072.HK) and Harbin Electric (NASDAQ:HRBN) now have orders totaling about 100 million KW. The transmission and substation equipment sector has maintained a growth rate of above 20 percent. At the same time, the electrical equipment industry achieved an outstanding performance last year. All this has paved the way for a steady industry growth in 2009.
-- 2008 performance of electrical equipment industry
China's electrical equipment industry managed to grow 25 percent in 2008, despite collapsed foreign demand amid the global financial crisis.
According to statistics on 19,800 large electrical equipment enterprises, gross industrial output value of the industry hit 2.49 trillion yuan last year, up 26 percent from the previous year's period. Industrial sales increased 24.99 percent to 2.42 trillion yuan. Main operating revenue grew 25.23 percent to 2.12 trillion yuan. Sales ratio reached 97.08 percent, indicating a smooth sales flow.
The output value of new products spiraled upwards in 2008. Following is a table showing the output value of new products and their contribution to the gross industrial output value during different periods of last year:
New product output value (bln yuan) Change y-o-y (pct) Contribution to gross industrial output value (pct) Jan.-March 64.06 27.69 12.86 Jan.-June 152.41 30.22 13.22 Jan.-Sept. 249.01 29.99 13.68 Jan.-Dec.
