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Fujian machinery industry slowly recovering

By Tong Hao (chinadaily.com.cn)
Updated: 2009-11-19 11:18

The machinery industry in Fujian province saw positive growth during the first ten months of this year, but the speed lags behind the national average level, according to the Fujian Machinery Industry Federation.

The province's machinery industry hit bottom in February 2009 due to the global financial crisis but began to recover month by month afterwards. Its total output value from January to October increased by 1.6 percent year-on-year to 217.06 billion yuan, while its profit during the first nine months increased by 8.18 percent to 8.78 billion yuan, said Chen Wenzhao, chairman of the federation, on Nov 18.

Chen estimated the output value of Fujian's machinery industry will increase by four percent while profit will be up by ten percent in 2009.

However, the recovery speed still lags behind the average level nationwide. According to Chen, there are two reasons: the province did not produce as many products like agricultural machinery and autos with small engines that have received policy support from the central government; the industry in Fujian is highly export-oriented, which accounts for 30 percent of the total production, 15 percent higher than national average. But overseas demand shrunk sharply during the financial crisis, Chen noted.

During the first ten months, Fujian machinery exports decreased by 19.1 percent to 49.72 billion yuan. Export of autos and auto parts, construction machinery and household appliances all decreased by more than 20 percent. Container exports plunged the most, by 97.6 percent.

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