China’s gear forging industry has developed rapidly during the Tenth Five Year Plan Period: in 2005, the annual output value of the gear industry increased from 24 billion yuan in 2000 to 68.3 billion yuan, with a compound annual growth rate of 23.27%. It has become the largest industry in China’s mechanical basic parts. In terms of market demand and production scale, China’s gear industry has surpassed Italy in the world, ranking fourth in the world.
In 2006, all gear, transmission and drive component manufacturing enterprises in China achieved a cumulative total industrial output value of 102628183000 yuan, an increase of 24.15% over the same period last year; The cumulative product sales revenue was 9823824000 yuan, an increase of 24.37% over the same period of last year; The total accumulated profit was 5665210 thousand yuan, an increase of 26.85% over the same period of last year.
From January to December 2007, all Chinese gear, transmission and drive parts manufacturing enterprises achieved a cumulative total industrial output value of 136542841000 yuan, an increase of 30.96% over the same period last year; From January to October 2008, all gear, transmission and drive parts manufacturing enterprises in China achieved a cumulative total industrial output value of 144529138 thousand yuan, an increase of 32.92% over the same period last year.
Compared with developed countries, China’s gear manufacturing industry still has some problems, such as insufficient independent innovation ability, slow new product development, disordered market competition, weak enterprise management, low degree of informatization, and the comprehensive quality of employees needs to be improved. At this stage, the gear industry should improve the industry concentration through market competition and integration, and form a number of large, medium and small-scale enterprises with assets of several billion yuan, 500 million yuan and 100 million yuan; Through the design and development of products with independent intellectual property rights, a number of leading enterprises of vehicle transmission system (gearbox and drive axle assembly) are formed to integrate the capabilities and resources of the gear industry with the supporting capabilities of the leading enterprises; Realize professional and networked supporting, and form a large number of famous brand enterprises with distinctive processes, products and rapid response ability; Realize the transformation of modern gear manufacturing enterprises through technological transformation.
At the end of the eleventh five year plan, the annual sales of China’s gear manufacturing industry could reach 130 billion yuan, and the per capita sales rose to 650000 yuan / year, ranking second in the world. From 2006 to 2010, 100000 new equipment will be added, that is, the annual investment for new equipment is about 6 billion yuan, and 20000 new machine tools will be purchased, with an average unit price of 300000 yuan per unit. By 2010, China’s gear manufacturing industry should have a total of about 400000 machine tools, including 100000 CNC machine tools, with a CNC rate of 25% (higher than the average value of the whole machinery manufacturing industry of 17%).