Development Situation of Seal Industry in China

The hydraulic parts used in China's current excavators above 20 tons are basically controlled by one company, namely Japan's Kawasaki Company. In March 2011, the earthquake in Japan. The earthquake in Dongfeng, thousands of miles away, has affected domestic excavator manufacturers.

Key components are very profitable, and China's construction machinery companies can only make this cake because of immature technology. In particular, the lack of high-end hydraulic components of construction machinery has become a hidden disease in the development of construction machinery industry.

3In March-April of that year, the supply of hydraulic parts for excavators in Japan was interrupted, and domestic excavator mainframe factories that mainly depended on hydraulic parts imported from Japan were forced to slow down the production pace, and some could only stop working. Since the Japanese Kawasaki company's supply principle in emergency situations is first domestic and then foreign, some Chinese OEMs can only seek supply sources in order to not affect the production progress.

Especially those excavator factories that have just been launched in the new round of capacity expansion. Since they are not old customers of Kawasaki, their supply requirements are even more unlikely to be met. It is understood that Rongsheng Heavy Industry is one of them. Since Kawasaki's hydraulic parts were not available, they had to find another way.

At this time, the brand Aohong began to surface.

Oujiangshan has two brands, namely Yantai Jiangshan Hydraulic Machinery Co., Ltd. and Jiangshan Hydraulic (Korea) Co., Ltd. (hereinafter referred to as Jiangshan). Although Jiang Zhi's chairman, Xu Zhihuan, looks and behaves in a somewhat Korean style, he is a native of Shandong. In the early years, it had been doing import and export trade of machinery products for many years. Later, it invested in building factories in South Korea, mainly producing key parts such as hydraulic parts that were in urgent need of import in China, and then shipped them to China for sale.

Hao Rongsheng couldn't buy the hydraulic parts of Kawasaki, and Jiangshan sold them hydraulic parts made in South Korea. Su Zimeng, secretary general of the China Construction Machinery Industry Association, recently returned from a visit to Jiangshan ’s South Korean factory. He said in an interview with reporters that Jiangshan ’s total domestic sales of hydraulic components last year were 400 to 500 units.