Analysis: China coal machinery industry to thrive on robust demand
Tuesday, August 24, 2021 10:10 AM

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BEIJING, Aug. 24, 2010 (Xinhua News Agency) -- China's coal machinery industry is set to embrace a golden period of development as the country restructures the coalmine industry.

-- Coal machinery sales boom

As the world's largest coal producer and consumer, China has seen rapid growth in coal machinery manufacture during the past years. Statistics show the gross output of 122 major coal machinery producers soared 19.54 percent in 2009 to 69.32 billion yuan. The country's raw coal production grew 8.8 percent to 0.05 billion metric tons (tonnes) in the same year.

Currently, coal accounts for 60 percent of China's energy mix. It will remain China's major energy source for a long time to come. China's coal output is expected to exceed 3.1 billion tonnes this year and the figure will stay around 3.3 billion tonnes in the next few years, said Xu Yaxiong, president of China National Coal Association (CNCA).

The strong demand on the coal market will boost demand for coal machinery, he said.

--Coalmine restructuring to lift demand

In an effort to ensure work safety and orderly operation in the industry, China has launched a series of campaigns to reform production from small coalmines.

Since 2005, China has shut down over 8,000 small coalmines. It aims to reduce the production capacity of small coalmines from 1.08 million tonnes to 700 million tonnes by the end of 2010.

With the closure of small coalmines, more large coal producers will be created. With strong capital strength and large production capacity, large producers tend to spend more on upgrading technology and adopting more efficient mining machinery.

According to the 11th Five-Year Plan for the coal industry (2006-2010), China will give priority to the development of 10 modern opencast coalmines and 10 modern coal shaft mines, each with 10 million tonnes capacity. It will create six to eight large coal groups each with 100 million tonnes of capacity and eight to 10 groups each with 50 million tonnes capacity, which will take up 50 percent of the total production capacity in the industry.

Meanwhile, China plans to build 14 large coal-producing bases with annual capacity of 2.24 billion tonnes in 2010. The mechanization level of large coalmines should reach 95 percent; that of midsize coalmines should hit 80 percent; and that of small coalmines 40 percent.

--Large, efficient coal machinery to enjoy wider market scope

As China closes more small coalmines, the demand for small, less efficient coal machinery will shrink. On the other hand, demand for large, more automatic and highly efficient machinery will rise.

In a bid to meet the demand, Chinese coal machinery makers should work harder at innovation.

Furthermore, more measures should be taken to attract personnel from home and abroad, said Xu.

The government should also give more financing support to coal machinery manufacturers. Competent machinery makers should be encouraged to raise funds from the stock or bond market, he added. (Edited by Wu Xiaobo, wuxb@xinhua.org)

 

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