Analysis: The guidance opinions on promoting the international production and

equipment manufacturing cooperation

The state council announced the guidance opinions on promoting the international
production and equipment manufacturing cooperation" (hereinafter referred to as "opinions"), put
forward the main tasks including to speed up the pace of railway "go out"; develop and implement
overseas power projects; speed up the independent brand cars to go into the international market.
For this, receive a enthusiastic response in the field of iron and steel circulation, and think
that the steel will usher a huge market of "going out" with promising prospects.
"Opinion" put forward that the iron and steel, non-ferrous, building materials, railway,
electric power, chemical, textile, automobile, communication, engineering machinery, aerospace,
shipbuilding and offshore engineering industry as the key, orderly progress.
"Opinions" make it clear in the "primary task", based on the domestic advantage, promote the
iron and steel, non-ferrous industry capacity in co-operation with foreign countries.
Combined with the domestic steel industry structure adjustment, in the way of complete
equipment export, investment, acquisition, contracted projects and others, set up iron-making,
steel-making, steel and other steel production bases in the key countries with good resource
conditions, strong necessary ability and big market potentials, driving steel equipment exporting.
"Opinion" also put forward the task of railway "out of sea", request to speed up the pace of
railway "going out", development of rail transit equipment to the international market.
To promote and implement around the key areas of connectivity, Africa rail network
construction and the high-speed rail project as the key point, fully take the comprehensive
advantages in the railway design, construction, equipment supply, operation and maintenance, and
financing aspects, actively carry out a package of cooperation. Positively develop and implement
of urban rail transit projects, and expand of urban rail transit vehicle international cooperation.
Establish assembly, maintenance base and research and development center in conditional priority
countries. Speed up the integration of rail transit equipment enterprises, key enterprise
international operation ability and the comprehensive strength of ascension.
In terms of electric power project, "opinions" requires positive communication and
consultation with relevant countries in nuclear power field, promote cooperation of key projects in
order to increase the export of nuclear power equipment and technology.
Actively participate in the national wind power, solar photovoltaic projects investment and
construction, promoting international capacity and wind power, photovoltaic power generation
equipment manufacturing cooperation.
Actively carry out foreign power grid project investment, construction and operation, in order
to increase the export of power transmission and transformation equipment.
In the field of automobile, "opinion" pointed out that in the large market potential, strong
industrial supporting countries to set up the car manufacturing and assembly plant, set up the local
distribution network and the maintenance center, in order to increase the export of the independent

brand automobile vehicle and parts, enhance the brand influence.

Encourage car companies in Europe and the United States developed countries set up
automotive technology and engineering research and development center, technical strength of
enterprises with foreign cooperation, improve the level of independent brand auto r&d and
manufacturing technology.
In terms of machinery and equipment, "opinions" clear integrate the advantage resources and
improve engineering machinery manufacturing enterprises such as the global business network.
Increase the engineering machinery, agricultural machinery, oil equipment, drilling pipe,
machine tools and other manufacturing enterprises market development efforts, actively carry out
financing leasing business, combined with the implementation of the major construction projects
abroad, expand exports.
Encourage enterprises to invest in conditional countries, perfect service network construction,
operation and maintenance to improve the comprehensive competition ability.
In terms of aviation equipment, "opinions" put forward to strengthen international
cooperation, promote aerospace equipment exported.
Vigorously develops the aviation market in developing countries, with good conditions in
Asia, Africa countries explore to set up joint venture air operating enterprise, the construction of
logistics base, and gradually form the regional air transport network, to build a number of
radiation surrounding countries regional aviation hub, to speed up the cooperation with relevant
countries to carry out the air, in order to increase the export of domestically produced aircraft.
Actively explore aviation market in developed countries, and facilitate the export of general
aircraft.
In ocean engineering ships, "opinions" requirement improve product and service level,
development of ship and ocean engineering equipment and high-end market.
Advantage of shipping capacity, to strengthen the mid-range of shipping market at the same
time, vigorously develop high-end ship and ocean engineering equipment market, to support
powerful enterprise investment in factories, set up overseas r&d center and sales service base, and
improve the ability of r&d and production of high-end products, increasing deepwater
semi-submersible drilling platform, floating production storage and offloading unit, ocean
engineering ships, such as liquefied natural gas (LNG) ship product international competitiveness.
Some operator engaged in steel trade thinks the enforcement of the "opinions", will bring the
huge steel market, railway, highway, rail transportation and electric power, automobile, machinery
and equipment, Marine engineering equipment "out of sea", direct and indirect drive the export of
steel.
Steel structure material co., LTD., chairman of Shanghai said since this year, China
mechanical engineering manufacturing companies have undertaken many foreign orders, in April,
the domestic equipment manufacturing company to undertake a foreign power station equipment
manufacturing project, total 8000 tons of steel, hot-rolled H section steel for 7000 tons, the rest of
the 1000 tons of production for channel, Angle and seamless steel pipe, all cleared before October.

"Going out" of China high-speed rail, iron equipment, hydropower equipment bring us huge
business for the Chinese steel industry and steel trade.
According to the personage insiders, high-speed rail development market broad has huge
prospects, in 2013, only $102.3 billion for high-speed rail markets around the world, jumped to
$112 billion in 2014, and the market is expected to reach $133.4 billion in 2019.
With China's high-speed rail "Going out", rail steel and related supporting facilities for the
iron and steel demand will increase dramatically.
Steel for railway building has a wide range of varieties and large quantity also, and the
performance is very demanding. For civil engineering such as railway stations, tunnels and
bridges, it need a lot of rebar, wire rod, plate screw, round steel and other construction steel,
basically accounted for 60 percent of the whole railway construction steel.
According to statistics, steel tracked every year around the world is about 13 million tons, in
addition, 2-3% of the world's railway also needs to be updated, each section of the railway
facilities pull of steel demand is to be reckoned with.
Related statistics also point out that for every one ton of steel rail, need 3 to 5 tons of steel
used to form a complete set of related station, bridge, tunnel, cable, locomotives and other
infrastructure.
The personage inside course of study points out that after China's high-speed rail going to the
foreign market, the subsequent operation, purchases of motor vehicles, equipment maintenance,
and surrounding land development and so on will drive the future consumption of steel, alloy
structual demand especially apparent increase.
Such as manufacturing of rail transit vehicles, calculated at midsize cars driving B (19 meters
long, 2.8 meters wide, 3.8 meters high), on the basis of various types of vehicles with steel
characteristics that all steel steel quantity is 25 tons; 23 tons of stainless steel, the stainless steel
for 7 tons; Aluminum alloy steel 16 tons, of which all kinds of aluminum alloy is 5 tons. General
urban rail lines per kilometer about six to eight vehicles, and therefore used in metro and rail
transit vehicle manufacturing, steel consumption is very large. According to the statistics of the
expert inside course of study, rail transit every investment of 100 million yuan, will drive the
11200 tons of steel consumption.
The industry believes that with the domestic and international market gradually opening, the
boom of railway construction industry will continue to improve, combined with China's "one belt
and one road" interconnectivity large strategy, with the "timely rain" of the rail steel.
At present 52 the investment Banks member countries and regions, in addition to the
developed countries and regions, there are 26 countries and regions involved in one belt and one
road, per capita steel consumption is 101.6 kg, 270 million tons of crude steel consumption.
In 2014, China's steel exports 34.4886 million tons to the 26 countries and regions,
accounting for 12.7% of the steel consumption in these countries and regions.
If in the next 30 years, these countries and regions of crude steel consumption per capita will
reach the world level 235 kilograms per capita, there will be a room of 360 million tons to grow.

Indeed, "One Belt And One Road" construction, the surrounding infrastructure
interconnectivity, the central African "three nets", and so on, have a great demand of steel.
In Africa and South America and some less developed countries, backward infrastructure, not
even a decent railway, so in the future construction requires a lot of steel, in the short term they
want to development, domestic steel production capacity can't meet again, so the imported steel
will become a way to meet those national construction.
For the steel industry and steel trade industry in our country, we are facing a very huge steel
consumption market. Wide prospect of domestic steel products "go out".