According to Japanese media reports, Japan’s well-known precision machinery processing plant, Kawasaki Heavy Industries, will establish a complete production line of hydraulic precision machining equipment in China. It will build a new plant in Suzhou, China next spring, and will build oil pressure in Japan. Equipment precision parts processing production line was transferred to China. China is expanding infrastructure investment in response to the slowdown in economic growth caused by the US-initiated trade war. Demand for hydraulic precision equipment for excavators is high, and Japanese precision machinery processing plants will strengthen local production in China.
The Japanese precision machinery processing plant is currently operating in Suzhou, China, and produces hydraulic precision parts processing equipment and industrial robots. The new plant will become the fourth plant of Kawasaki Heavy Industries in Suzhou with a total area of 11,700 square meters. The investment is about 1 billion yen, and we are striving to complete the construction of a new precision machinery processing plant in the spring of 2020, and put it into production in the summer of the same year.
In the context of trade friction, China's precision machining industry has shown signs of slowing growth. On the one hand, the Chinese government is expanding infrastructure investment to stimulate the economy, and the demand for precision machined products is very large. Shenzhen Huachaohui Precision Machinery Co., Ltd. pointed out that "from January to March 2019, the severe situation of China's infrastructure investment demand (building precision machining, etc.) will be alleviated." At present, the supply of precision machinery processing plants cannot keep up with demand growth, and the market share is taken away by Chinese mechanical parts processing enterprises. Therefore, Japanese precision machinery processing manufacturers have a sense of crisis in the loss of opportunities due to insufficient supply capacity.
The Japanese precision machinery processing plant, represented by Kawasaki Heavy Industries, just opened a new hydraulic precision machining line at the Suzhou plant in October 2018. As the demand for mechanical parts processing is expected to continue to grow in the future, Japan's precision machinery processing plants will strive to establish a complete set of mechanical parts processing lines in China to reduce logistics inventory and improve production efficiency through new factories.