24

2011

-

10

Increased Policy Support and Investment in the Paper Industry Drive Steady Growth in the Automation Market

Source:


The quarterly monitoring study of the automation market shows that in the second quarter of 2011, procurement spending on automation products in the municipal sector remained broadly flat year-on-year, with a slight decline, but posted a 25.1% increase quarter-on-quarter: During the Eleventh Five-Year Plan period, driven by proactive national policies and a RMB 4 trillion investment package, investment in the municipal sector experienced explosive growth, making it one of the key drivers of expansion in the automation market. With the onset of the Twelfth Five-Year Plan, the government and all sectors have placed unprecedented emphasis on energy conservation and emissions reduction efforts; as an important component of the environmental protection industry, the municipal sector is expected to maintain solid growth, albeit at a slower pace. In the first quarter of 2011,
  The quarterly monitoring study of the automation market indicates that in the second quarter of 2011, procurement spending on automation products in the municipal sector remained broadly flat year-on-year, with a slight decline, while posting a 25.1% increase quarter-on-quarter:
  During the 11th Five-Year Plan period, driven by proactive national policies and a RMB 4 trillion investment package, investment in the municipal sector experienced explosive growth, emerging as one of the key drivers of expansion in the automation market. With the onset of the 12th Five-Year Plan, energy conservation and emissions reduction efforts have garnered unprecedented attention from both the government and various industries. As an important component of the environmental protection industry, the municipal sector is expected to maintain robust growth, albeit at a slower pace. In the first quarter of 2011, holiday periods and seasonal weather conditions resulted in fewer new project commencements compared with other quarters, with some system integrators focusing on carryover projects from the fourth quarter of the previous year. However, starting in the second quarter of 2011, market investment picked up markedly, with a significant increase in the number of projects relative to the first quarter. Both the backlog of projects carried over from late 2010 and newly signed contracts for 2011 began to be implemented, leading to a substantial rise in procurement spending on automation products. Consequently, the overall automation market in the municipal sector posted a quarter-on-quarter growth of 25.1% in the second quarter. Year-on-year growth in the municipal-sector automation market during the same period remained broadly flat.
  In accordance with the “Notice on Issuing the 2011 Targets for Phasing Out Outdated Production Capacity in Industrial Sectors” (MIIT Industry [2011] No. 161), all provinces (autonomous regions and municipalities directly under the central government) have allocated and assigned the 2011 targets for phasing out outdated production capacity across 18 industrial sectors to specific enterprises. Naturally, the paper-making sector is also included in this effort, involving a total of 8.196 million tonnes and 599 enterprises. As a result, paper-making production lines will undergo renovation and upgrading, new equipment will be procured, and ultimately, demand for automation products will increase.

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