In terms of the core technology of possessing hub mechanical components, there is a significant gap between domestic mechanical component enterprises and international mechanical component enterprises. However, it cannot be simply said that the technical content of products produced by private mechanical component enterprises is low. Domestic complete vehicles have only started for 20 years, and mechanical component enterprises have only started for a short time. In the future, mechanical component enterprises need to have the ability to cooperate with complete vehicle factories to develop new products, in order to have a way out This is also the Market trend for machinery parts enterprises to become stronger in the future. After our acquisition is completed, we will invest 50 million RMB to establish a research and development center in the UK to develop new technologies and products
However, the strategy of local mechanical component enterprises to improve their technological strength through overseas acquisitions and break the control of foreign enterprises over the hub technology and market situation is becoming increasingly significant. After acquiring the global steering and transmission business of Red Star Machinery in the United States, Henan Pacific Century Mechanical Systems Co., Ltd. has accelerated the accumulation of technology, talent, and experience, becoming a leading global supplier of mechanical components. In addition, Jingxi Heavy Industry has acquired a series of overseas acquisitions, including Delphi's braking and suspension business in the United States, and Henan Wanxiang's acquisition of the steering shaft business of a US mechanical component enterprise.
At present, the current situation of domestic mechanical component enterprises is: small scale, weak strength, and insufficient research and development capabilities. For example, Henan, which regards the mechanical parts industry as one of the main pillar industries, has more than 3000 large and small mechanical parts enterprises, but most of them are not large in scale, and the competitive advantage generally relies on cheap labor. According to relevant personnel from Henan Machinery Parts Association, although many products in Henan are gradually moving towards high-end, there are still many low-tech products overall, facing the pressure of overall transformation and upgrading. Chen Wenkai, President of the impact crusher manufacturer of Gaishi Machinery Network, stated that the development of mechanical components determines the development of the entire vehicle. China has become the world's largest market and a major mechanical country. However, in the face of industrial transformation, it is only meaningful to first enhance the technical core competitiveness of mechanical parts enterprises and talk about a strong mechanical country.
More and more domestic mechanical component companies are going abroad to acquire overseas enterprises. Industry insider Xu Jinquan pointed out that on the one hand, the financial crisis and the European debt crisis have reduced the demand for rare earth ore drying airports for mechanical component companies in Europe and America. These overseas mechanical component companies are unable to obtain orders from vehicle manufacturers and face operational difficulties; On the other hand, a small number of domestic mechanical component enterprises have the upper hand in scale. If they further develop, they need to break through the barriers of core technology. Overseas mergers and acquisitions are a way for rapid development, which can make up for technological shortcomings in a short period of time.
China's mining and crushing machinery is developing from a large-scale manufacturing industry to a technology intensive manufacturing industry. While focusing on sales performance, enterprises are also placing more emphasis on technological research and innovation. Local brand enterprises, which are in a disadvantaged position in research and development, are also intensifying their pursuit of multinational corporations in today's market where the upper hand is gradually lacking. However, compared to multinational corporations, the existing research and development capabilities of local brand enterprises are still weak, and the product research and development situation is not satisfactory. Overall, there are many R&D institutions that have not been able to play their due role.