China Inverter Welding and Cutting Equipment Industry Report, 2012-2014

China's economic growth slowed down in 2012, and the growth rates of shipbuilding, construction steel structure, oil and gas pipeline industries decreased to varied extent, thus causing the weakened demand for welding & cutting equipment. In 2012, Chinese welding & cutting equipment market valued RMB33.9 billion with a year-on-year growth rate of 14%, while the growth rate was high up to 20% in 2010 and 2011.

As a new type of welding & cutting equipment, inverter welding & cutting equipment is replacing traditional one in most fields by virtue of high working frequency, fast response, excellent welding performance, energy saving and environmental friendliness, small size and light weight, and its market growth rate is higher than the average level of the whole welding & cutting equipment market.

In 2012, Chinese market size of inverter welding & cutting equipment reached RMB10.4 billion, up 18% from a year earlier, and contributing 31% to the welding & cutting equipment market value from 29% in 2010. In view of the uncertainty of China's economic growth over the next two years, the growth rate of the overall welding & cutting equipment market is expected to remain at about 5% in 2013-2014, and the growth rate of the inverter welding & cutting equipment market will be 12-13% because of ever high substitution rate.

Affected by the falling downstream demand, the customers preferred low-end inverter welding products in 2012. The low-end products feature low added value, resulting in decreased profitability of major Chinese inverter welding & cutting manufacturers.

Shenzhen Riland Industry Co., Ltd. is China's largest inverter welding & cutting equipment manufacturer. In 2012, to ensure its revenue, the company raised the proportion of low-end products in production and marketing. During the first three quarters of 2012, the net income of the company dropped by 17.50% year-on-year to RMB66 million, and the gross margin descended from 27.44% in 2011 to 25.73%. The company is optimistic about the prospect of automatic welding equipment, and it made more investment in the marketing of such equipment in 2012, but this pulled down the company’s the net profit margin in Q1-Q3 2012 by 5 percentage points, especially net profit margin in Q3 slumped by 35 percentage points.

As China’s second largest inverter welding & cutting equipment producer, Jasic Technology occupied 5.8% market share in 2012. In the first three quarters of 2012, its net income dropped by 15.91% year-on-year to RMB74 million. Because of the fairly high sales ratio in overseas markets, the gross margin of Jasic Technology was stable in 2012 without drastic decline. As the inverter welding & cutting equipment expansion project is completed in 2013, the company’s capacity of inverter welding & cutting equipment will rise to 600,000 sets.

The report covers the followings:

• Industrial environment, technical environment, and policy environment of Chinese inverter welding & cutting equipment;
• Development and outlook of Chinese inverter welding & cutting market, including market size, market structure, regional pattern, corporate competition; future development trends and influencing factors;
• Structure of Chinese inverter welding & cutting application market, as well as development and outlook of main downstream markets;
• Development of major Chinese inverter welding & cutting companies, involving revenue, gross margin, main products and development strategies.

Table of Contents

1. Introduction
1.1 Welding Industry
1.2 Definition and Principles of Inverter Welding and Cutting
1.2.1 Merits and Demerits
1.2.2 Classifications
1.3 Upstream and Downstream
1.4 Industrial Features
1.4.1 Periodicity
1.4.2 Regionality
1.4.3 Seasonality

2. Development Environment of Inverter Welding and Cutting Equipment Industry
2.1 Industry Environment
2.1.1 Industry Status Quo
2.1.2 Industrial Pattern
2.2 Policy Environment
2.2.1 Industry Authorities
2.2.2 Industry Standards
2.2.3 Regulation System
2.2.4 Industrial Policy
2.3 Technical Environment
2.4 Development of Downstream Sectors
2.4.1 Metal Furniture
2.4.2 Electric Power
2.4.3 Construction Steel Structure
2.4.4 Petrochemical Pipelines

3. Chinese Inverter Welding and Cutting Equipment Industry
3.1 Welding and Cutting Equipment Market
3.1.1 Industry Development
3.1.2 Production
3.2 Inverter Welding and Cutting Equipment Market
3.2.1 Market Size
3.2.2 Market Structure
3.2.3 Regional Structure
3.2.4 Application Fields
3.3 Competition among Enterprises
3.4 Production Cost
3.5 Development Trend and Risk
3.5.1 Influencing Factor
3.5.2 Development Trend
3.5.3 Operating Risk

4. Key Companies
4.1 Shenzhen Riland Industry Co., Ltd.
4.1.1 Profile
4.1.2 Revenue
4.1.3 Gross Margin
4.1.4 Customers and Suppliers
4.1.5 Development Strategy
4.1.6 Business Performance Prediction
4.2 Shenzhen Jasic Technology Co., Ltd.
4.2.1 Profile
4.2.2 Revenue
4.2.3 Gross Margin
4.2.4 Customers and Suppliers
4.2.5 Development Strategy
4.2.6 Business Performance Prediction
4.3 Beijing Time Technologies Co., Ltd.
4.3.1 Profile
4.3.2 Revenue and Gross Margin
4.3.3 Development Strategy
4.4 Lincoln Electric
4.4.1 Profile
4.4.2 Operation
4.4.3 Operation in China
4.5 ESAB
4.5.1 Profile
4.5.2 Operation
4.5.3 Operation in China
4.6 Others Still not Listed
4.6.1 Panasonic Welding Systems (Tangshan) Co., Ltd.
4.6.2 Shanghai WTL Welding Equipment Manufacture Co., Ltd.
4.6.3 Kaierda Group
4.6.4 Shanghai Hugong Electric (Group) Co.,Ltd.
4.6.5 Aotai Electric Co., Ltd.
4.6.6 Shanghai Shiwei Welding Industry Co.,Ltd.
4.6.7 Chengdu Hanyan Weida Technology Co., Ltd
4.6.8 Xionggu Electrical Co., Ltd

List of Charts

Main Ways of Metal Connection
Development Course of Welding and Cutting Equipment
Classification of Welding
Operation Theory and Classification of Inverter Power Supply
Comparison between Traditional Welding and Cutting Equipment and Inverter Welding and Cutting Equipment
Classification of Inverter Welding by Welding Technology
Comparison between Different Switching Devices in Inverter Power Supply
Upstream and Downstream Industries of Inverter Welding and Cutting Equipment
Global Market Size of Inverter Welding and Cutting Equipment, 2007-2014
Gaps between Chinese Enterprises and Global Enterprises in Welding and Cutting Equipment Industry
Welding Industry by Region 2010, 163 billion RMB globally
The World’s Major Enterprises in Welding Industry (Ordered by Income)
Proportion of Metal Furniture in Total Output of Furniture in China, 2002-2012
Output and Growth Rate of Metal Furniture in China, 2002-2014
Growth Rate Comparison between China’s Power Installed Capacity and Its GDP, 2002-2012
China’s Power Installed Capacity, 2002-2014
Comparison of Application of Steel Structure in China, Japan and America
China’s Output of Stee Structures, 2003-2014
Chinese Market Size of Inverter Welding and Cutting Equipment in China, 2007-2014
Gross Margin of Chinese Welding and Cutting Equipment Industry, 2003-2012
China’s Output of Electric Welders, 2001-2012
China’s Output of Electric Welders by Region, 2011-2012
Growth Rates of China’s Output of Crude Steel, Welded Steel Pipe and Welder, 2006-2012
Scale and Growth Rate of Chinese Inverter Welding and Cutting Market, 200702014
Proportion of Inverter Welding and Cutting in the Welding and Cutting Equipment in China and Beyond, 2007-2014
Chinese Inverter Welding and Cutting Market Structure, 2007-2014
Sizes of Inverter Welding and Cutting Market Segements in China, 2007-2014
Inverter Welder Market Scale by Region in China, 2011
Downstream Market Demand Structure of Welding and Cutting Equipment, 2007-2012
Main Chinese Manufacturers of Welding and Cutting Equipment
Market Share of Leading Chinese Manufacturers of Welding and Cutting Equipment, 2012
Major Chinese Companies in Inverter Welding and Cutting Equipment Industry
Comparison between Listed Chinese Companies in Inverter Welding and Cutting Equipment Industry
Market Share of Leading Inverter Welding and Cutting Equipment Companies, 2012
Cost Make-ups of Inverter Welder
Average Salary of Chinese Workers, 2002-2011
Upgrading Trilogy of Welding and Cutting Equipment Industry
Competitiveness of Chinese Inverter Welding and Cutting Industry
Workforce and R&D Investment of Shenzhen Riland Industry, 2007-2011
Comparative Experiment of Riland’s Inverter Welder and Traditional AC Arc Welder
Revenue and Net Income of Shenzhen Riland Industry, 2007-2012
Revenue of Shenzhen Riland Industry by Product, 2010-2012
Revenue of Shenzhen Riland Industry by Region, 2007-2012
Revenue (by Region) of Shenzhen Riland Industry from Domestic Market, H1 2012
Consolidated Gross Margin of Shenzhen Riland Industry, 2007-2012
Gross Margins of Shenzhen Riland Industry by Products, 2010-2012
Customer Concentration of Shenzhen Riland Industry, 2007-2011
Top Five Suppliers of Raw Materials for Shenzhen Riland Industry, 2010-2011
Fund-Raising Projects List of Shenzhen Riland Industry
Revenue Prediction of Shenzhen Riland Industry, 2012-2014E
Workforce and R&D Investment of Shenzhen Jasic Technology, 2007-2011
Revenue and Net Income of Shenzhen Jasic Technology, 2007-2012
Revenue of Shenzhen Jasic Technology by Product, 2010-2012
Revenue of Shenzhen Jasic Technology by Region, 2008-2012
Consolidated Gross Margin of Shenzhen Jasic Technology, 2008-2012
Gross Margins of Shenzhen Jasic Technology by Products, 2010-2012
Customer Concentration of Shenzhen Jasic Technology, 2008-2012
Supplier Concentration of Shenzhen Jasic Technology, 2008-2012
Product Development Roadmap of Shenzhen Jasic Technology
Construction Projects of Shenzhen Jasic Technology
Revenue and Gross Margin of Shenzhen Jasic Technology, 2012-2014E
Total Assets of Beijing Time Technologies, 2008-2012
Workforce Structure of Beijing Time Technologies, 2011-2012
Revenue and Net Income of Beijing Time Technologies, 2008-2012
Gross Margin of Beijing Time Technologies, 2008-2012
Beijing Time Technologies’ Revenue from Welders and Cutters, 2008-2012
Beijing Time Technologies’ Gross Margin of Welders and Cutters, 2008-2012
Net Sales and Net Income of Lincoln Electric, 2007-2011
Total Assets of Lincoln Electric, 2007-2011
Sales of Lincoln Electric by Segment, 2012Q3
Location map of ESAB
ESAB’s business model
Revenue by destination of ESAB
Subsidiary undertakings in China of ESAB
Main Products of Panasonic Welding Systems (Tangshan) Co., Ltd.
Operation Data of Panasonic Welding Systems (Tangshan), 2007-2009
Main Products of Shanghai WTL Welding Equipment Manufacture Co., Ltd.
Operation Data of Shanghai WTL 2007-2009
Operation Data of Hangzhou Kaierda, 2007-2008
Operation Data of Zhejiang Kaierda, 2007-2009
Operation Data of Shanghai Hugong Electric, 2007-2009
Operation Data of Shandong Aotai Electric, 2007-2009
Domestic Market Map of Aotai Electric
Operation Data of Shanghai Shiwei Welding, 2007-2009
Main Products of Chengdu Hanyan Weida Technology Co., Ltd
Marketing Network of Chengdu Hanyan Weida Technology Co., Ltd
Operation Data of Chengdu Hanyan Weida, 2007-2009
Operation Data of Xionggu Electrical, 2007-2009