CITIC Heavy Industries
CITIC Heavy Industries is one of the world’s leading suppliers and service providers of heavy mining and cement equipment, and one of the largest heavy machinery manufacturers in China. The company engages in the design, manufacture and sales of large equipment, complete technical equipment and key basic parts in the areas of heavy machinery, EPC projects, robotics and intelligent equipment, energy conservation and environmental protection. The company’s main facilities are located in Luoyang in Henan Province, Tangshan in Hebei Province, and Lianyungang in Jiangsu Province. It also operates a production facility in Vigo, Spain.
As one of the few cement and mining equipment manufacturers certified in both the United States and Europe, CITIC Heavy Industries serves leading industrial companies such as Lafarge, Holcim, Cemex, Heidelberg Cement, Italcementi, VALE, BHP Billiton, China Shenhua Energy, China Huaneng Group, China National Gold Group, and Conch Cement.
Year in review
In 2017, against the backdrop of industry recession, CITIC Heavy Industries streamlined its business model to focus on its core competency in “manufacturing + integrated service”. Driven by the strong performance of its specialty robot business and the improved margins of its heavy machinery business, the company grew sales by 23% yearon- year to reach RMB4.62 billion. Net profit also turned around, reaching RMB31.32 million.
The key revenue drivers over the year were sales of heavy machinery, EPC projects along with robotics and intelligent manufacturing, each contributing 56.2%, 19.3% and 19.2% of turnover. The energy conservation and environmental protection business also posted strong growth.
In 2017, the operational and financial performance of the heavy machinery business improved substantially, buoyed in particular by product quality improvements and intelligent manufacturing system upgrades. During the year, major products were delivered for several large projects, including the tunnel boring machines for the construction of the Suai Tunnel in Shantou and a subway system in Luoyang, as well as the ore milling machines for the Mirador Copper Mine in Ecuador.
In robotics and intelligent manufacturing, CITIC Heavy Industries intensified its product development and marketing activities throughout the year. The company now offers five categories of robotic products (track, submarine, inspection, tunneling, drilling) for a total of twenty individual products. These products have broad applicability across a range of contexts: firefighting, civil infrastructure, power plants, mining and oil refining. Already, the fire-fighting robots have been deployed to support fire service departments in provinces and cities across China, including Jiangsu, Guangdong, Henan, Hebei and Shandong. Submarine and inspection robots also enjoyed broad market prospects due to their practical applicability in diverse and realistic use cases.
Overseas, the company has completed the Cambodia CMIC 5,000tpd Cement Line EPC Project with operations commencing two months ahead of schedule. Poised to catalyze economic growth in the country, the project drew praise for the company’s prowess in Belt and Road economies. As of the end of 2017, CITIC Heavy Industries had been delivered products and services in thirty countries or regions along the Belt and Road.
Research and development
CITIC Heavy Industries’ core competitive advantages are its strength in product development and unique technologies. Its technical centre in China features the most comprehensive research facilities in the country for mining equipment, while its R&D centre in Australia works closely with international customers to develop new products across the region. The company has established the first national key laboratory for mining equipment, as well as an analysis and testing laboratory for new mining equipment and materials.
As of the end of 2017, CITIC Heavy Industries owned 855 valid patents in China, of which 269 are invention patents. New products represented over 70% of total production in 2017.