รัสเซีย is a vast country with a large population and is affected by events such as the Ukraine crisis. In recent years, Russia has been blocked by western countries. The domestic economy has been in crisis, production has declined, prices have risen substantially, and the purchasing power of residents has been declining. Since June 2014, the ruble has fallen by more than 50% against the US dollar, and the major institutions have lowered their credit rating on Russia. But Russia has abundant resources and strong economic potential, and there is still a good market prospect in the future.
Since 2000, Russia has become one of the fastest-growing countries in the construction field in the world. Its construction market has grown at an annual rate of 10% ~ 15%, and the sales of heavy equipment such as cranes have grown rapidly. In 2008, Russia imported the largest number of mobile cranes in history, with a total of 673, of which there are no less than 484 cranes imported from China, including 385 16t to 25t truck cranes from XCMG and 90 30t to 70t auto cranes of Zoomlion. After the financial crisis, the Russian construction machinery market experienced a year of total collapse in 2009, including the import and manufacturing volume of heavy machinery including cranes, fell rapidly. Since 2010, the Russian manufacturing industry production level has been significantly improved due to the launch and implementation of the federal special planning and strategic planning in the manufacturing industry field, and the national policies on supporting industries.
In 2017, the infrastructure construction of Russia recovered, and the major projects led by the state and large-scale industrial and mining projects invested by individuals began to start construction, and the construction machinery industry also generally held optimistic attitude towards market expectations. As an important strategic market, in front of the huge market and resources of construction machinery, the Russian industrial products are relatively weak, and the pace of Chinese construction machinery entering the Russian market with location advantages is gradually accelerating. In addition to the drive of infrastructure, the abundant mineral resources will also provide Russia with a broad market for lifting machinery. Russia has 30% of the world's natural gas, 10% oil, 30% diamond, 27% nickel, 21% palladium, 16% coal and 8% copper reserves. It needs a lot of engineering machinery products to exploit mineral resources. One quarter of Russia's GDP is based on the export of raw materials such as oil and gas. The construction conditions of mining areas are generally bad and the loss of engineering machinery products is relatively large. Therefore, Russia has a sustainable and stable demand for construction machinery products such as cranes in the mineral field.
In 2016, the market scale of Russian heavy machinery manufacturing industry reached 268billion rubles, an increase of 1.1% year-on-year, domestic production increased by 9.9% year-on-year, with a total amount of 173billion rubles. The total export of heavy machinery was 14.3 billion rubles, an increase of 7.2 per cent year on year. In the first quarter of 2017, China's construction machinery export amounted to US $4.027 billion, an increase of 1.48% year-on-year, of which, the export to Russia was US $148 million, an increase of 110.1% year-on-year, achieving a significant increase.
The Russian government attaches great importance to the development of heavy machinery manufacturing industry. The goal of implementing national policies in this field is to improve the domestic machine tool manufacturing and tool manufacturing level in scientific research, production and infrastructure, so as to ensure the development of Russian machinery manufacturing industry, especially in strategic fields, through competitive production technology. The Russian government has successively formulated several strategic plans and documents on the development of heavy machinery manufacturing industry in Russia:
(1) The industrial policy law was promulgated. The law is the basic document for the reform and development of all the industrial fields in Russia in the future. The key issues highlighted include: establishing industrial development fund and providing low interest rate loans to domestic industrial enterprises; Government procurement shall give priority to the purchase of domestic industrial products; To promote the development of national defense industrial system, including improving industrial infrastructure, price formation mechanism of military products, and external distribution mechanism of national defense orders; Encourage the transformation of scientific research results to production and application, etc
(2) Formulate tax reduction plans for industrial enterprises and revise tax laws. After tax reduction, the Russian Federation should be exempted from the profit tax of industrial enterprises and 60% of the local tax.
(3) Introduce financial subsidy measures. Some enterprises in heavy machinery manufacturing industry have been subsidized in terms of loan interest, and the industrial development foundation has provided a total of 108.6 million rubles to five heavy machinery manufacturing companies. The development strategy of heavy machinery manufacturing industry by 2020 and vision plan by 2030 approved by the Russian government have entered the active implementation stage.
(4) Establish import substitution Committee. The Commission has a civil economic sub Commission and a national defense industrial complex sub committee to promote the substitution of import for civil industry and assembly industry.
(5) Support the heavy machinery manufacturing industry and other key industries with funds.
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