High Speed ​​Rail Rapidly Builds 3.5 Trillion Investment to Benefit Fast Hardware Fastener Industry

The author recently learned from relevant experts of the National Development and Reform Commission that China’s high-speed railway construction will maintain large-scale investment in the next five years, and the investment amount will be maintained at about 700 billion yuan per year, totaling about 3.5 trillion yuan. Investing in high-speed rail will help China's hardware fastener companies.

Fasteners are known as "industrial rice," and at the same time, they are also the most widely used and most used mechanical parts in all sectors of the national economy. Prior to this, China’s giant fastener giant Jin Yi Industrial Co., Ltd. had cleverly grasped the opportunity of high-speed rail, won the bid for a huge amount of high-speed rail orders, and conquered the difficulties to achieve a leap.

Wang Ming, deputy director of the Institute of Integrated Transportation Research of the Macro Research Institute of the National Development and Reform Commission, said that the series of national policies for expanding domestic demand has brought huge opportunities for the development and construction of rail transit. In the next five years, China’s railway investment will remain at about 700 billion yuan per year. Wang Ming said that in the past few years, China’s railway investment has basically only hovered around 2000-300 billion yuan each year. In fact, last year China’s railway investment started at about 600 billion yuan, which was mainly affected by the series of national policies for expanding domestic demand. The funds are mainly from the input of the national government, and some are from local governments. Local governments have established a good platform through investment companies. This has also laid a good foundation for the rapid growth of railway investment in the past two years.

The country's huge investment in high-speed railway construction has made railway fastener companies useless, but not all companies can win business opportunities. Different from common fasteners, high-speed iron fasteners have high technical requirements, complicated production processes, and the product quality is subject to a lifetime traceability system. Therefore, we can see that both opportunities and challenges coexist.

Wang Dongming, a researcher at the Institute of Integrated Transportation Research of the Macro Research Institute of the National Development and Reform Commission, pointed out that the investment in railways this year may exceed 700 billion yuan, and investment in railways will not be low in the next few years. After all, there are so many projects under construction, even if it is because of not Let these projects become the premise of the bad project, it should also continue to maintain a considerable amount of investment.

Benefiting from the construction of high-speed railways, high-speed rail fasteners will have a vast market in the future. According to the "Medium-and-long-term railway network plan (adjusted in 2008)", by 2020, more than 16,000 kilometers of passenger dedicated lines will be built. According to current construction progress and planning, the length of China's passenger dedicated lines will probably reach 2020. 24,000 kilometers.

From a short-term perspective, as of now, China's high-speed railways are operating at 6552 business kilometers, and the operating mileage ranks first in the world. The high-speed railway currently under construction is still more than 10,000 kilometers. It is expected that by 2012, China will build a high-speed railway. With more than 40 lines, the total mileage will exceed 13,000 kilometers. Calculated by 200 yuan per fastener, a rough calculation, the future high-speed rail fasteners still have at least 240 billion market space.

Wang Dongming believes that the main focus of this year's railway investment is the completion of the passenger dedicated line, fast passenger transport network, port convergence, high-speed railways, coal transportation channels, the southwest channel, the southeastern channel, Xinjiang channel and so on.

The construction of high-speed rail will not only bring benefits to the fastener enterprises, but the construction of the railway will also bring tremendous development opportunities to hardware and other equipment manufacturing industries and steel and related industries.

As a national large-scale infrastructure construction, the requirement for quality is the first element. For fasteners and hardware companies, the quality is also the survival of the enterprise, a hardware company to long-term development must regard quality as life, so as to be firmly grasped when the opportunity comes.