Now, I will focus on introducing the background information and characteristics of the exhibition. 1. Market demand for machine tools in China remains robust and the country pays important attention and offers strong support to the development of domestic CNC machine tool industry. The machine tool industry is at an important turning stage and faces with valuable development opportunities as well as severe challenges. In recent years, China’s stable and fast economic development and rapid growth of fixed-asset investment stimulate the demand for machine tools. Because of the improvement of the industry’s competitiveness and policy support from the government, China’s machine tool and tools industry has maintained an above 20% growth for six years in a row in terms of its total industrial output value and sales revenue. In 2006, output value and sales revenue of the industry increased by 27.1% and 26.4% respectively, with their growth rates being 2.3 and 0.9 percentage points higher than 2005. Sales value of domestic metal-processing machine tools (including metal-cutting machine tools and metal-forming machine tools) rose to the 3rd position in the world since 2005. In 2006, the figure reached 55.2 billion Yuan (about US$7.06 billion), and of the total, output of CNC metal-cutting machine tools increased by 32.8%, with its production reaching 85,756 units in 2006. Growth rate of CNC metal-cutting machine tools was 18.4 percentage points higher than the growth rate of metal-cutting machine tool production. The ratio of CNC metal-cutting machine tools hit 37.8% of the total output value. Demestic-made machine tools occupied 44.8% of the domestic market share, up 5.1 percentage points over the same period of the previous year. Total machine tool consumption value (domestic product sales revenue + import value – export value) and import value in the Chinese mainland rank the 1st in the world for five years in a row. In 2006, machine tool consumption value in the mainland reached US$13.11 billion. In 2006, machine tool imports hit US$7.24 billion, up 11.55% over the previous year and representing an increase of 1.7 percentage points compared with the growth rate of the previous year. Machine tool exports reached US$1.19 billion, up 44.56%. In 2007, the country will further enhance its macro-control and growth pace of fixed-asset investment is expected to decrease rapidly. But market demand for machine tools and development of the industry will remain stable and fast. It is predicted that growth rate of total industrial output value and product sales revenue of the industry will be about 15%, machine tool consumption value will reach about US$13.7 billion, output of domestic-made CNC metal-cutting machine tools will reach nearly 100,000 units, import value of machine tools will be about US$7.5 billion and export value will be close to US$1.5 billion. In recent years, vigorously developing the manufacturing industry has been put high on the agenda of top State leaders and the leaders have made important instructions on development of the manufacturing industry. Vigorous development of the manufacturing industry has been enlisted as a key program of the national development plan. In The 11th Five-Year Plan Outline of National Economic and Social Development, vigorous development of the manufacturing industry is an important part for promoting the optimizing and upgrading of industrial structure and CNC machine tool is one of the key sectors for vigorously developing the manufacturing industry. In 2006, the State Council promulgated The Mid- and Long-Term Plan Outline of National Science and Technology Development (2006-2020) and The Opinions of the State Council on Accelerating the Vigorous Development of the Manufacturing Industry. They set 16 key sectors which should make breakthroughs (also known as key special projects) and which enlisted “developing large-type, precision and high-speed CNC equipment and CNC system as well as key components for CNC machine tool” as one of the key development sectors strongly supported by the Government. To implement the above-mentioned program and opinions, the State Council has decided to carry out the key special project of high-grade CNC machine tools and basic manufacturing equipment. The General Office of the State Council set up a leading group of the key special project, with Ma Kai, Minister of the National Development and Reform Commission as head of the group, Zhang Guobao, Vice-Minister of the National Development and Reform Commission as deputy head of the group and leading officials from the Ministry of Science and Technology, the Ministry of Education, the Ministry of Finance, the Commission of Science, Technology and Industry for National Defense, the Chinese Academy of Science and the Chinese Academy of Engineering as members of the group. On October 24, 2006, the leading group held its first meeting, setting its tasks and arranging its future work. Robust market demand and emphasis and requirement of the government on development of domestic-made CNC machine tool industry have inspired the colleagues of the machine tool industry, and at the same time, made them felt the great responsibility on their shoulders. At the critical turning point of China’s machine tool and tools industry shifting from “a large machine tool manufacturing country” to “a strong machine tool manufacturing country”, the colleagues feel that they face with not only unprecedented development opportunities, but also severe challenges. United, the colleagues of the industry are determined to constantly strive to become stronger, vigorously develop the national machine tool industry and the CNC machine tool industry. The fact that domestic-made machine tools occupy an increasingly larger market share since 2005 proves that it is not an easy job to make the achievement. At the same time, major players of the machine tool industry from developed countries have long eyed the huge Chinese market. Through various forms such as product sales, cooperation, joint venture and wholly-owned ventures, they have acquired a pretty large share of the Chinese machine tool market. In the future, market competition will become even fiercer. CIMT2007 is held against such a background and as a result, domestic and overseas machine tool enterprises are getting even more enthusiastic about participating in the exhibition. All exhibitors will display their latest and top-quality products and technology to compete against each other.
2. Exhibits to be displayed at CIMT2007 are a collection of the latest development results of the world’s CNC machine tool industry and advanced manufacturing technology, and represent the development trend of the modern machine tool technology. At the same time, they also demonstrate the latest products and technology of China’s CNC machine tool industry which has enjoyed fast development in the past six years. Initial statistics indicate that more than 1,100 exhibiting enterprises from 28 countries and regions in the world will display more than 1,200 units of machine tools and over 10,000 items (sets) of CNC systems, measuring and cutting tools and key components for CNC machine tool. Such exhibits are a collection of the latest development of the world’s CNC machine tool industry and advanced manufacturing technology, and represent the development trend of the modern machine tool and tools technology. At the same time, they also demonstrate the latest products and technology of China’s CNC machine tool industry which has enjoyed fast development in the past six years. Next, I will give you some examples to highlight the exhibits to be displayed at the exhibition. You may often hear about the representative product of advanced manufacturing equipment – 5-Axis simultaneous machine tools. Such machine tools to be exhibited at the coming machine tool show represent new improvement in terms of both quantity and quality. Nearly 70 sets of five-axle linkage motion processing machine tools (including five-axle linkage motion complex processing machine tools) will be exhibited at the exhibition. Of the total, about 40 are domestic-made machine tools. Shenyang Machine Tool Shareholding Co Ltd will, for the first time, display one set of vertical machining center with A/B spindle and one set of planer-type machining center, which are a breakthrough in the sector of domestic-made high-grade CNC machine tool development. Shenyang Machine Tool Shareholding Co Ltd will exhibit a total of 11 sets of five-axis simultaneous machine tools, including multi-function complex CNC machine tools. Exhibitors of five-axis simultaneous machine tools also include: Jinan No. 2 Machine Tool Group Co Ltd, Zigong Long March Machine Tool Co Ltd, Guilin Machine Tool Co Ltd, Beijing Beiyi CNC Machine Tool Co Ltd, Zhejiang Rifa Digital Precision Machinery Co Ltd, Jiangsu Duoleng CNC Machine Tool Co Ltd, Precision Machinery and Electronics Co Ltd of Beijing Machine Tool Institute, High-tech Co Ltd of Beijing Machinery and Electronics Academy, Dalian Machine Tool Group Co Ltd and Ningjiang Machine Tool Group Co Ltd, etc. Domestic enterprises which exhibit five-axis simultaneous machine tools increase to 20 exhibitors with 40 exhibits this year from 10 exhibitors with 15 exhibits at the previous exhibition. Renowned overseas companies that will exhibit five-axis simultaneous machine tools include Mazak Co and Moriseiki Co of Japan, Mikron Co (2 sets) and Willemin Co (2 sets) of Switzerland, Cincinnati of the United States, DMG, Chiron-Werke GmbH & Co and HERMLE AG (2 sets)of Germany, Hwache of South Korea and Fair Friend Enterprise Group of Taiwan, etc. Walter AG, SAACKE and Vollmer AG of Germany, J. SCHNEEBERGER Maschinen AG of Switzerland, STAR of the United States and ANCA (2 sets) of Australia will exhibit five-axis simultaneous CNC tool grinding machine; Water Jet of Sweden will exhibit five-axis simultaneous water cutting machine; and Gleason Co of the United States will exhibit 6 axis simultaneous helical bevel gear milling machine, etc. High-efficiency and high-speed are one of the directions for development of CNC machine tools. At the coming exhibition, a large number of high-speed machining centers will be displayed. Of the total 210 sets of machining centers, 120 are from domestic companies and 90 are from overseas companies. However, overseas speed-machining centers account for about 50% of the total machining center exhibits while domestic high-speed machining centers make up about 25% of the machining center exhibits. Maximum main spindle speed of a large number of machine tools reaches 30000-40000r/min, with their fast moving speed being 60-70m/min. Developing and manufacturing various types of complex processing machine tools are also one of the directions for development of modern CNC machine tools. At the coming exhibition, about 20 complex machine tools in various types will be displayed. Of the total, 12 are five-axis horizontal turning-milling complex machining centers, 6 from domestic companies and 6 from overseas companies. Shenyang Machine Tool Group will exhibit a series of 6 complex machining centers that are in various types and have its own intellectual property rights. Mazak Co, Okuma Co and Moriseiki Co of Japan, DMG of Germany, Doosan of South Korea and WFL of Austria will all exhibit their five-axle horizontal turning-milling complex machining centers. There will also be a number of five-axis truning-milling complex machining centers from overseas companies, such as BUMOTEC SA (2 sets) and Willemin Co of Switzerland, and DMG of Germany. Other complex machine tools include ultrasonic milling-cutting complex machine tool and laser milling-cutting complex machine tool from DMG of Germany. Nanjing CNC Machine Tool Works will display its turning-grinding complex machine tool, etc. A group of other new and high-tech products will also be displayed at the coming exhibition. Harbin Measuring Tool Group will exhibit its new generation parallel kinematics machine (PKM), Shanghai Machine Tool Co Ltd will exhibit its nano-meter grinding machine tool, Jinan No. 2 Machine Tool Group Co Ltd will display its precision plasma cutting machinery, and Nanjing Jinma Science and Technology Co will exhibit its planer-type moving high-speed compound material machining center. Agie Charmilles Co of Switzerland will exhibit its high-precision wire-cutting machine, Hardinge Co of the United States will display its high-precision spindles turning center, HAUSER Co of Switzerland will exhibit its CNC coordinate grinding machine, YASDA of Japan will exhibit its CNC vertical jig boring machine, and RAISHANER Co of Switzerland, KAPP Co of Germany and Gleason Co of the United States will exhibit high-precision gear-grinding machines, etc.