Japan's reconstruction will boost sales of construction machinery by 18%

According to the data released by the Japan Construction Equipment Manufacturers Association (CEMA), in the fiscal year ending in March next year, Japan's post-earthquake reconstruction will boost machinery sales by 18% to 2,300 billion yen (26.3 billion U.S. dollars), and is expected to increase further in the next fiscal year. It increased by 11% to 22.4 billion yen.

CEMA said that although some of the machinery manufacturing industry has been transferred overseas, Japanese steel makers need not worry. Driven by construction activities, domestic steel demand will surge by 24% throughout the fiscal year, such as increased processing orders for construction machinery used in heavy plates, and export growth will also increase by 16% due to increased demand in Asian emerging economies.

The Ministry of Land, Infrastructure, Transport and Tourism of Japan stated recently that the relief work for the 190-kilometer coastal dike destroyed during the earthquake and tsunami on March 11th will be completed in September, after which a permanent dike will be implemented. Five-year plan. CEMA expects that demand for construction machinery in Japan will continue to grow in the coming years. In order to offset the negative impact of the appreciation of the yen, Japanese machinery makers are preparing to increase production at overseas factories to meet the growing demand in foreign markets. Japanese machinery and equipment manufacturers such as Komatsu, Hitachi and Kobelco have production facilities in China, India and other regions. To provide steel support, Japan's Metal One and Keiyo Blanking have also established plate processing centers in Hangzhou and Suzhou, China. It is reported that the two companies also plan to establish the same joint venture in India.

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