Russian machine tool market with opportunities and challenges

Abstract May 23~27, 2016, the 17th Russia International Metal Processing Equipment and Tools Exhibition (Metalloobrabotka2016, 17thInternationalExhibitionforE...
May 23~27, 2016, the 17th International Exhibition of Metal Processing Equipment and Tools (Metalloobrabotka 2016, 17th International Exhibition for Equipment, Instruments and Tools for the Metalworking Industry) at the Expocentre Exhibition Center in Moscow According to international practice, the organizer provided information tables for national and regional machine tool associations. Wang Liming, executive vice president of China Machine Tool Industry Association, led a team of 6 people to participate in the exhibition, and publicized the Chinese machine tool industry and related exhibitions. Brief description of the exhibition and the current status of the Russian machine tool market.
Exhibition summary:
The Metalloobrabotka exhibition was founded in 1984 by the Russian Machine Tool Association and the Expocentre Exhibition Center, and is supported by the Russian Ministry of Industry and Trade, the Russian Federation of Industrialists and Entrepreneurs, and the European Machine Tool Industry Cooperation Association. Support is the largest machine tool exhibition in Russia. The exhibits range from metal cutting equipment and tools, metal forming equipment and tools, welding, casting and heat treatment equipment, CNC systems and related ancillary products, tools and cutting tools.
The exhibition occupied a total area of ​​83,317 square meters, with a net area of ​​38,519 square meters. A total of 981 exhibitors from 32 countries and regions participated in the exhibition. Among them, the number of exhibitors in Russia was 451, accounting for 46%. The audience of this exhibition is more than 27,000.
World-renowned companies DMG MORI, Mazak, Amada, Okuma, Bystronic, Balluff, EMAG, WFL , Hurco, Junker, Man Ferrostaal, Trumpf, Fanuc, Mitsubishi, Sandvik, etc. Large area or eye-catching booth design exhibits.
It is important to note that the performance of Russian local machine tool builders at this exhibition is different from that of a few years ago. Many exhibitors represented by STAN (CTAH) Group not only have large booth area, but also have more international booth design and exhibits. There are also advanced equipment with high technical content and outstanding features. A table-turning five-axis machining center exhibited by STAN Group has attracted wide attention due to its small footprint and excellent functions. The STAN Group was formed in September 2012 and consists of five well-known and well-known machine tool companies that produce grinding machines, machining centers, boring and milling machines and heavy-duty machine tools.

Chinese exhibitors and exhibits
Nearly 60 Chinese exhibitors participated in the exhibition, mostly through local agents or organized by different institutions and exhibition companies. Among them, the well-known enterprises include Dalian Machine Tool, Shenyang Machine Tool, Ningjiang Machine Tool, Huazhong CNC, Kunming Machine Tool, Shenzhen Dazu Laser, Tianjin Forging, Shandong Weida, Linyi Venus, etc. Except for Dalian Machine Tool, Shandong Weida, and Dazu Laser, which are exhibited in larger areas or better locations, most other companies participate in the standard booths in the corresponding exhibition groups, and most of the exhibits are medium and low-end products. Extensive, can not let people appreciate the true face of the Chinese machine tool industry. The China Machine Tool Industry Association participated in the exhibition for the first time, which provided exhibitors with better booths and provided multi-party services. China National Machine Tool Corporation has built an independent exhibition hall of 270 square meters, with 27 exhibiting companies. The exhibits are still on the right track and there are more visitors. It is worth mentioning that Huazhong CNC has devoted a lot of effort to this exhibition. Chairman Chen Jihong personally took the team to participate in the exhibition. He exhibited the Huazhong 8-type high-end CNC system complete sets of products that can represent China's level. There are also 4 sets on the exhibition site. The machine tool exhibits of Huazhong CNC system are configured.
Opportunities and challenges in the Russian machine tool market
1. Russia's local machine tool industry is gradually recovering
In this exhibition, while the local exhibitors in Russia maintained a large scale, the grades of exhibits and the image of the booths were all improved to varying degrees. It is understood that the Russian local machine tool industry is gradually recovering. With the strong support of the government, a number of machine tool and tool enterprise groups have been newly established. A number of cooperative research projects have been carried out between machine tool enterprises and universities and research institutes. Product development related to local actual needs, there are more than 10 Russian-related universities and research institutes participating in this exhibition.
There are only two national brands of CNC systems in Russia, one of which is the crystallization of deep cooperation with China Kaiqi for many years. The software system is completely copyrighted by Russia, and the hardware equipment is designed and produced by Cage in China. The current leading models of the system are NC-110, 210, 310 and other series, and the installed rate of local machine tools in Russia reaches 70%. More than 20 machine tool exhibits were installed in the show, from high-end CNC lathes to five-axis horizontal boring and milling centers.
2. Russian machine tool market demand more high-end, large-scale, special equipment
According to the Russian network report, before the Russian machine tool industry to the bottom of the valley before 2014, the annual output of machine tools was about 3,000 units. In 1993, the annual output was about 80,000 units. The current dependence on imported machine tools has dropped from 88% in 2014 to 80% in 2015. The biggest demand in the Russian machine tool market comes from the fields of military industry and nuclear power. In 2011, the Russian government decided to invest in these key areas, such as investing 300 billion US dollars in power facilities and nuclear power plants in five years; and investing 900 billion dollars in military equipment construction in 10 years. In May of this year, Putin approved the military development plan for the next four years. All of the above are closely related to the future development of the machine tool industry.
3. High success rate of partners in the local area
Russian users cannot fully trust a purely foreign supplier who has not cooperated. Therefore, it is best to communicate and negotiate with local agents in the early stage of cooperation, or to cooperate in depth with local related companies.
4. Chinese machine tools promote tips in Russia
Machine tool enterprises should thoroughly study the real needs of the Russian market and take out the products that the other side urgently needs. They must not simply sell the surplus products in the Chinese market directly. At the same time, we must sell the products with mature technology and excellent quality to the Russian market. We cannot sell the products with unstable performance because of the urgent need of the other party. Over time, they will be eliminated by users. Pre-sales and after-sales services are indispensable for long-term operation. In the Russian market, it is necessary to consider the whole process in terms of service. The maintenance service is timely and efficient, and the data preparation is complete and complete.
At the beginning of the development of the Russian market, it is necessary to understand the relevant policies and regulations as much as possible, and always pay attention to the latest policy changes, and at the same time guard against the risk of foreign exchange settlement, so as to avoid unnecessary losses. At present, there are not many people in Russia who can use English to negotiate, and there are not many talents in Russia who still have Russian. Therefore, cooperation with Russia must anticipate the practical problems in language communication. (Machine Association Media Department - Zhang Fangli writes)

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