Inadequacies in the development of the machine tool industry

Inadequacies in the development of the machine tool industry Festgage, chairman of the German Federation of Machinery and Equipment Manufacturers, said in an interview with Reuters last week, "We must be vigilant at all times. Companies must distance themselves from competitors from Asia through innovation." German companies must always maintain their advantages. At the same time, we should increase the prices of medium and low-end products to further expand production in the local area. The president of the Federation of Machinery Manufacturing Industry believes that there will be no large-scale wave of German companies acquiring Chinese companies or Chinese acquiring machinery manufacturing companies in Germany.

Festgge said that German machinery manufacturers usually invest 4.5% of their profits in new product development and technological improvements. But quality alone does not guarantee the successful occupation of the international market. Festgage said: "We must also find the right combination to provide customers at all levels with affordable products." This goal can be achieved through the cooperation of local manufacturers. In addition, manufacturers can also build protective walls for their high-end products by providing simple mechanical equipment.

The German Federation of Machinery and Equipment Manufacturers believes that in 2014, the global machinery manufacturing industry will increase its turnover by 5%. China also plays an important role here. Because only China's machinery manufacturing industry is expected to gain 7%. Feistere believes that, despite this, German companies' M&A in China will be only a few cases. Not long ago, after two years of negotiations, the German mechanical manufacturer TRUMPF Group purchased a majority stake in China's Jiangsu Province Jinfangyuan. Festgage said that Chinese companies usually have a lot of employees, but they lack new technologies, so investors are not interested. At present, there are about 200 German machinery manufacturers that are wholly owned in China. Sales and after-sales service companies are three times that number. Therefore, it is said that Germany’s investment in China is more than China’s investment in Germany.

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