The burgeoning natural gas industry in China, coupled with tightening regulations for environment protection have collectively created a number of opportunities for global manufacturers of machinery. Many of these players in the machinery manufacturing sector are looking for new avenues to mitigate the damages caused by an economic slowdown globally.
2013, in particular, was reported as being tough for leading heavy machinery manufacturers worldwide. The scene was no different in China—the second largest economy in the word—with problems such as rising costs, declining demand, and low product prices throttling the profitability of companies.
However, this has not stopped foreign players in the heavy machinery sector from exploring new avenues in China as a way to expand their global footprint and to find new avenues for growth.
According to the CEO and chairman of Caterpillar Inc Douglas R Oberhelman, every country is faced with a period of adjustment at some point as no boom can sustain for centuries together. However, once it does go through a period of painful transition, it emerges healthier. Caterpillar Inc is the largest manufacturer of mining and construction equipment worldwide.
The company is keen on continuing its investment in China, as it regards the Chinese economy as being a high-potential market.
However, what cannot be overlooked is the fact that China is plagued by a serious smog problem that it is striving to tackle. Among the various steps taken towards solving this problem are: taking a stringent stand with the emission standards that govern steel mills, downing the shutters on small-scale power plants that are coal-fired, and toughening emission regulations for refineries as well as heavy construction equipment.
The Caterpillar boss says that the company possesses clean technology that has matured over a 15-year period.