Polar bears wake up? A Brief Analysis of Opportunities and Risks in Russian Machine Tool Market

Abstract On May 14, 2017, following the footsteps of the “One Belt, One Road” international cooperation summit forum in Beijing, Changchun Yuheng Optical Co., Ltd. went to Russia to participate in the 18th Russia International Metal Processing Equipment and Tools Exhibition (...
On May 14, 2017, following the footsteps of the “One Belt, One Road” international cooperation summit forum in Beijing, Changchun Yuheng Optical Co., Ltd. went to Russia to participate in the 18th Russia International Metal Processing Equipment and Tools Exhibition (hereinafter referred to as the Russian International Machine Tool Show). The team set foot on a flight to Moscow.
The China Pavilion, where Hengheng Optics is located, has a total exhibition area of ​​650 square meters and 120 exhibitors. Often closed, it is still possible to see many exhibitors warmly receiving intent customers from different countries and regions. Many customers have come to the pavilion for repeated negotiations and inquiries for many days in a row, which shows the enthusiasm of Russian machine tools and manufacturing for Chinese products. On the morning of May 15, the China Pavilion held an opening ceremony.
As the leader of China's grating encoders, the director of the China Machine Tool & Tool Industry Association Digital Display Branch, and the only Chinese sensor manufacturer at the exhibition, Yu Heng Optics is not only responsible for promoting and promoting Chinese raster coding at this exhibition. The task of the instrument and the grating ruler is also focused on the overall situation of the current Russian industry and the overall market demand for the sensor.
As for the current Russian machine tool market, it should be said that it is developing in the direction of rationalization and seeking for a goal. The machine tool market will gradually move out of the downturn, from the whole machine to the supporting aspects, and the local enterprises are growing rapidly. Other countries and regions are optimistic about the Russian market. Exhibitors from 33 countries and regions participate in the exhibition. The German pavilion, the Korean pavilion, the Taiwan pavilion and the Chinese pavilion all applied for the largest booth area ever.
Through the exhibition, we observed that the upgrading and transformation of the Russian machine tool industry tends to be obvious, and it is manifested in the following aspects:
(1) The two governments attach great importance to support: China's "One Belt, One Road" policy, Russia is the largest market in policy, and an important founding member of the AIIB, occupying an important position in the "Belt and Road", Putin government The "Far East Development" strategy of shifting the focus of development to China's "One Belt, One Road" strategic focus is in line with China-Russia economic cooperation to stimulate new market space.
On December 1, 2016, Russian President Vladimir Putin signed a new version of the "Russian Federal Foreign Policy Concept" (hereinafter referred to as "the concept"), calling for the establishment of an equal and mutually beneficial partnership. The "Concept" emphasizes that Russia will continue to actively cooperate with China in various fields to jointly cope with new threats and challenges and build a comprehensive, strategic and cooperative partnership of comprehensiveness, equality and mutual trust.
(2) The Sino-Russian cooperation mode can better meet the needs of the Russian market: China's machine tool industry is about to gradually step out of the industrial decline since 2011, and it will rise steadily from the production to the amount. The docking method of the Chinese machine tool industry and the Russian machine tool industry has also been completed for several decades, forming a relatively suitable cooperation method. For example, Dalian Machine Tool and Baoji Machine Tool have started cooperation with Russia to build a factory. At the same time, some small and medium-sized machine tool factories are also actively working to carry out relevant cooperation. Supporting enterprises such as CNC systems have vigorously promoted their products through extensive development of agents and formation of representative offices in Russia.
(3) The development of the sensor market is waiting for take-off: the number of sensor manufacturers in Russia can be said to be rare. Most of the sensor products are imported into the Russian market from the system or the whole machine. Therefore, there are few sensors on the sensor. Only a handful of companies that need to retrofit and upgrade their machines will be interested in sensors. It is believed that as more Chinese machine tools enter the Russian market, the demand for sensors will gradually increase, and the take-off of the sensor industry is just around the corner. China's grating sensor products represented by Changchun Yuheng Optics, its grating encoder products have been applied in Russia, and the market space in the future will be very broad.
In summary, the Russian machine tool market has a large upside potential and strategic potential. It is like a polar bear sleeping in Siberia is gradually waking up. When you see the opportunity, you must also pay attention to various risks, including financial risks, currency settlement risks, and policy changes. At the same time, the language and cultural barriers between China and Russia also need to be bridged and overcome.

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