Chapter One Industry Overview

The heavy machinery industry refers to the industry that produces and sells heavy machinery products and equipment. Common heavy machinery includes mining machinery, lifting equipment, road and bridge machinery, comprehensive heavy machinery, airport equipment, port equipment, and railway equipment.

Chapter 2 Business Model and Technology Development

2.1 Industry chain value chain business model

Upstream: The main raw materials required for production in the heavy machinery industry include steel, scrap, pig iron, and various alloys, as well as electricity, gas and other energy sources. Although some companies in the heavy machinery industry can adjust the price of products on hand orders based on changes in raw material or energy prices, there is a certain lag in time between product price adjustments and fluctuations in raw material or energy prices, and there are also changes in the range of changes. Certain differences, therefore, fluctuations in raw material or energy prices will have a certain impact on the stability of the industry’s business performance.

From the distribution of downstream industries, the heavy machinery industry mainly provides production equipment for basic industrial fields such as chemical, metallurgy, and refining, including heavy equipment such as pressure vessels, forging equipment, and mining equipment. The chemical industry mainly includes the manufacture of chemical raw materials and chemical products. Because the production process requires a large amount of cracking and chemical reactions, the heavy machinery and equipment that need to be used include pressure equipment, separation equipment, storage tanks, large heat exchangers, transportation pipelines and other large castings and forgings.