NEWS

According to Nikkei china.com, Chinese demand is supporting the performance of Japanese companies. According to the forecast released by Japan's factory automation equipment and robot integrated manufacturer on fanaco4 27, the consolidated operating profit in fiscal year 2017 (up to March 2018) will increase by 1% year-on-year, and the performance of China's industrial robot business will be boosted. In addition, the expansion of public investment in China has also made up for the juniper of construction machinery manufacturers. Although Komatsu's operating profit (US accounting standards) for fiscal year 2017 is expected to fall by 10% year-on-year, if expenses incurred by US mergers and acquisitions are excluded, profits actually increased by 12%. Under the background of increasing uncertainty of US demand, the situation of relying on China will be strengthened.

According to Nikkei china.com, Chinese demand is supporting the performance of Japanese companies. According to the forecast released by Japan's factory automation equipment and robot integrated manufacturer on fanaco4 27, the consolidated operating profit in fiscal year 2017 (up to March 2018) will increase by 1% year-on-year, and the performance of China's industrial robot business will be boosted. In addition, the expansion of public investment in China has also made up for the juniper of construction machinery manufacturers. Although Komatsu's operating profit (US accounting standards) for fiscal year 2017 is expected to fall by 10% year-on-year, if expenses incurred by US mergers and acquisitions are excluded, profits actually increased by 12%. Under the background of increasing uncertainty of US demand, the situation of relying on China will be strengthened.

"The Chinese market is hot," Kobayashi, chairman and CEO of fanaco, said at a financial statement meeting on the 28th. In order to produce Apple's new generation of smartphones in the United States, EMS companies have increased their investment, and the shipments of cutting machines are rapidly expanding. While the upgrade of smartphones can bring temporary demand growth, the demand for factory automation in response to structural changes such as rising wages is also increasing in China.

In particular, industrial robots were in short supply, and Fanaco decided to build a new factory in Tucheng Prefecture, Japan. By August 2018, the capacity of 6000 units per month will be increased to 9000 units.

According to statistics from the Japan Machine Tool Industry Association, the amount of Chinese machine tool orders in March was 36.7 billion yen, an increase of nearly three times over the previous year. "the recovery of china's manufacturing sector will continue," said rice leaf, president of fanaco.

"Supported by the growth of public investment after the second half of 2016," said guishanzhev, director of Hitachi Construction Machinery Co., Ltd., Ltd., for the sale of construction machinery in China. In 2016, sales in China rose 33 percent to 71.5 billion yen. Komatsu's sales of construction machinery and vehicles in China rose 40 percent.

Even after the Spring Festival, the demand season, sales to China are still strong. For fiscal 2017, Komatsu forecasts sales to China will rise 3 percent year-on-year to 100 billion billion yen. Hitachi Construction Machinery is expected to grow 4 percent to reach 74.1 billion yen. "" Demand is expected to continue through the fall, "said Koizumi, vice president of Komatsu. The backdrop, some believe, is that the Chinese government won't let the economy cool until the party congress ends in the fall of 2017.

"China's domestic consumption is strong, but exports to overseas have not increased," said Okada, holdings vice-president of JFE, a Japanese steel company. As of the last fiscal year, the flow of low-cost Chinese steel into Japan has become one of Okada's concerns, but this situation is now showing a decreasing trend.

Although JFE does not publicly forecast its fiscal 2017 results, the market's average forecast for it is almost double normal revenue, at around 160 billion yen. In the Asian steel market, China's overcapacity and export pressure are the prerequisites for JFE's revenue recovery.

Although China's demand is recovering, the construction machinery market is still shrinking compared with the 2010 fiscal year when the government implemented a large-scale fiscal stimulus. At that time, China's demand for hydraulic excavators was less than 1/3. In the machine tool industry, people are worried that the market demand may decline after the demand for smart phones.