ition increased.
Second, the small enterprises had a hard time. Especially the small enterprises which produce low pressure, carbon steel pipe, were in maintaining potatoes state, even individual already discontinued because of the market depression, small amount of assets, poor anti-risk ability.
Third, the tubing enterprises were generally running below capacity. Some major scale spiral pipe, straight seam welded pipe enterprise were in reduction of output and production restriction state. According to preliminary statistics, 8 small enterprises stopped production. The enterprises which had not stopped production are difficult to maintain. Some companies appear downsizing layoffs. Forth, the orders reduced, contracts postponed.
1.3 Development Prospect
Pipe equipment industry is in associate with dustrialization, urbanization process. Industrialization is faster, the degree of dependence is higher; the faster the urbanization, the greater the infrastructure construction demand.
No matter energy or infrastructure is inseparable from the pipeline equipment products. Globally, in addition to over 30 developed countries and regions' urbanization has reached 90%, such as the U.S., the European Union and Japan, the urbanization remained stable. Industrialization level has matured. The countries involved less than 20% of all the countries.
The population involved less than 15 percent of the world population. Most developing countries and backward area is still in the course of urbanization and industrialization. This shows potential international market is very big. Judging from domestic China, the urbanization rate reached 44 percent. In industrialization, the industrialization level composite index of our country just reaches 50. Industrialization level has reached industrialization medium term. It will cost 20 years to reach industrialization mature period.
China has a long way to go to reach the level of urbanization and industrialization of developed countries. This directly drives for the demand of energy, basic construction. Where there is demand, there is market. That is to say, pipeline equipment industry has at least 30 to 50 years period of strategic opportunities.
1.4 Development Opportunities
First, the nation increased investment opportunities. In order to expand domestic demand, the central authorities timely make a series of important decision to adjust and deploy macroeconomic regulation and control policy, the nation is facing another large-scale investment boom. Basic construction, energy construction, municipal construction will spread. It provided more wide development space for pipeline equipment industry. According to concerning sectional estimates, energy construction will be invested 3.5 trillion yuan during "11th five-year plan" period.
By 2020, China energy industry accumulative total investment will reach 1 trillion yuan. Only from gas transmission project to see, West-East natural gas transmission's total investment passed 1,000 billion yuan. In the crude oil conveying, by 2010, the state planed to build 7540 miles oil pipeline which covered 11 provinces.
Second, the opportunities of national fiscal policy and monetary policy's adjustment. Fiscal policy from "stable" to "positive", it means china will increase financial expenditure again. Our industry belongs to the fund labor-intensive ind
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