Cars driving the countryside for bearing hot future are huge

The China Bearing Industry Association learned that, driven by the surge in demand for small bearings, the growth in output and profits of the entire industry was nearly 40% higher than last year.

Last year, the industry also launched joint research on high-speed rail bearings and large aircraft bearings. The industry believes that if the development goes smoothly, high-speed rail bearings will take over the banner of small bearings and become a strong driving force for future industry growth.

Although the final statistics on automobile sales in the countryside have not yet been released, the preliminary data show that the main business income of the bearing industry in 2010 will exceed the one-hundred-twenty billion yuan mark, reaching 120 billion yuan, and the growth rate will reach 30%.

Driven by the automobile, agricultural machinery, and home appliance industries, the demand for small-sized bearings increased significantly in 2010. It is estimated that the annual bearing output will reach 15 billion sets, an increase of 36.36% over the same period of last year. It is estimated that the total profit can reach 6.5 billion yuan, an increase of 38.3% over the previous year.

The reporter learned that bearing exports will reach 4.15 billion sets in 2010, a year-on-year increase of 53.65%, an increase of 28.9% from 2008, and foreign exchange earnings will reach US$3.32 billion, a year-on-year increase of approximately 63.6%, and an increase of 11.4% over 2008.

According to the association’s sources, the major growth in exports is mainly due to the development of the bearing industry in China in recent years. The technical level of micro-bearing products is close to the international level and has occupied a stable market in the global micro bearing market.

According to reports, at present, the vast majority of local companies, including listed companies, produce small and medium-sized and small-sized bearings, and the output of large and medium-sized bearings accounts for less than 3%.

The high-speed rail market will become the industry's development direction compared with nearly 40 percent in 2010. The China Bearing Industry Association has reduced the growth rate of the bearing industry in 2011.

Association members believe that this year, automotive, agricultural machinery, household appliances and other market fluctuations will have an impact on the development speed of the bearing industry; at the same time as the RMB exchange rate rises, the competitiveness of ordinary bearings and mid-range bearing products will be further weakened. He said that "the growth rate of the bearing industry in 2011 will slow down."

However, with regard to the longer-term time span, driven by the high-speed rail industry, the development prospects of the bearing industry are still very impressive.

In January, Axis Research [30.50-1.10%] confirmed that the China Bearing Industry Association has identified the company as the lead agency responsible for the development of high-speed railway bearings in the bearing industry. Association sources revealed that the organization and promotion of high-speed rail bearing R&D will be one of the association’s work centers this year.

The industry believes that, according to the current working speed, if all goes well, in the next two to three years, domestic high-speed rail bearings are expected to achieve matching.

According to the "Medium-and-long-term railway network plan (adjusted in 2008)", by 2012, China will build 42 high-speed rail passenger lines, total mileage will exceed 13,000 kilometers; by 2020, China's high-speed railway mileage will reach 18,000 kilometers.