Eleventh Five-Yearperiod, China's agriculture, water conservancy, energy, transportation, information, construction, environmental protection and other industries developed rapidly, for which a large number of machinery and equipment necessary to meet their development needs. With the industrialization and automation level, the equipment required supporting a large number of high-performance and high reliability of hydraulic pneumatic and sealing components. Preliminary estimation, by 2010 domestic hydraulic, hydraulic, pneumatic, sealing the total product demand, 2005 will be 200 billion (one of about 900 million U.S. dollars of imports, exports nearly 300 million U.S. dollars) to about 35 billion yuan (one of about 1.5 billion U.S. dollars of imports, exports about 500 million U.S. dollars). One of, hydraulic products from more than 100 billion to 200 billion yuan, hydraulic products from more than 10 billion to more than 20 billion yuan, Pneumatic Products near 3.0 billion increased by more than 50 billion yuan, sealing products from 30 billion to seven billion yuan.

Construction Machinery are one of the biggest users of hydraulic products, accounting for 42.3 percent of industry sales, the proportion of the future will be expanded, so the development trend of construction machinery is essential. It is estimated that by 2010 the demand for hydraulic excavators in about 6 million to 8 million units, bulldozers (120 horsepower) nearly Units, loader about 10 million to 12 million units, about 2,000 Units Grader, Roller about 15,000 Units, Engineering Units crane about 20,000, about 80,000 Units forklift, cement mixer nearly Units. In addition, construction machinery in China now has about 140 million in 2010 is expected to reach 200 million units. In another development, the annual production for domestic

enterprises excavators, road machinery, cement mixer, and assorted imported hydraulic parts, some more than 150 million U.S. dollars. In short, for the engineering machinery, and repair hydraulic seals the

market will face a new period of great development.