Domestic alternative, China power transmission and distribution and automation manufacturers

Welcome new opportunities in overseas markets

AO810-3BSE008522R1 Behind the EPC are key equipment and products. Under normal circumstances, EPC is only responsible for the engineering implementation of related projects, and the main equipment and products need to be purchased from a third party (especially power matching related transmission and distribution products and industrial control related automation products). Affected by the sanctions, enterprises in Europe and the United States and other countries can not directly or indirectly sell products to Russia, even if the relevant products are sold to the Chinese EPC, and then the Chinese EPC is sold to Russia through the way of engineering projects, which is also prohibited. It is possible that some components will flow into Russia with the equipment, but it is also necessary to consider the follow-up services of these products. This is bound to lead to foreign automation companies such as Siemens and ABB, and the proportion of their products in the procurement of relevant EPC continues to decline, which provides new opportunities for Chinese companies in the market.

Winning project: Iran Integrated oil field project

Project amount: about 300 million yuan (about 20% of the sales of certain technology in the year)

The main reason for the bid: At that time, Iran faced sanctions from AO810-3BSE008522R1  the United States and the European Union, and Iran worried that after the war, engineering service spare parts could not be bought, and did not dare to cooperate with American and European companies easily, so certain technology obtained this project.

AO810-3BSE008522R1

AO810-3BSE008522R1 Follow-up impact: Certain technology successfully opened the overseas market with this project as the benchmark and case.

So which Chinese companies are most likely to achieve domestic substitution? Based on professional market research experience, Mirui Industry has sorted out the list of industrial products required for typical EPC projects, as well as the main European and American mainstream suppliers and Chinese mainstream suppliers of this product:

Appendix I

Based on the long-term monitoring and research of China’s overseas EPC market, MIR Rui Industry has sorted out the TOP15 Chinese EPCs with project performance in Russia (ranked by 2020 overseas revenue) for your reference:

Appendix II

Chinese EPCs in Ukraine encounter risks from armed conflict, affecting the normal operation of the project

According to the latest version of the Country (region) AO810-3BSE008522R1 Guide of China’s Ministry of Commerce, there are 54 Chinese enterprises actually operating in Ukraine in 2020, mainly in the fields of communications, electronic products, infrastructure, agriculture, processing industry and manufacturing. In recent years, as the Ukrainian wind power market is optimistic, including China Power Construction, Goldwind Technology, China Energy Construction, Longyuan Power and other domestic enterprises have actively entered. Affected by the situation in Ukraine, many companies have issued announcements and announced the operation of their business in Ukraine.

According to statistics, at present, some enterprises in Ukraine’s business has stopped operations, another part of the enterprises said that the current impact is small, but the future is still variable, need to pay close attention.