After eight years, Macro Polo has ceased operations as the Paulson Institute will focus its independent research on supporting its programs as it continues to diversify its scope.
We appreciate the community that has grown around Macro Polo and the fruitful engagement we’ve had with our legion of smart and sharp audience. You’ve pushed us to deliver even more original work and innovative products. Our body of work speaks for itself, and we hope it will have a long shelf life – that was the intent from MP’s inception.
MP’s website is now archived and no new work will be published henceforth on this site. Please visit www.paulsoninstitute.org for future research and policy work on a range of global issues.
Thank you all for the support over the years, it has been a privilege to have had a home at the Paulson Institute and to have built it the way we did.
- Team Macro Polo
The general machinery industry has been an important pillar of China’s rise as a manufacturing powerhouse. These private machinery companies have numerous specializations, ranging from component and precision tool makers to producers of heat exchangers and gearboxes. Their products are used in a diverse array of sectors from agriculture to logistics.
The industry’s growth has outpaced China’s economic growth. In 2016, the industry’s value-added output grew by 9.6%, compared to 6.9% for the overall economy. However, the industry is still replete with low-end manufacturers—fewer than 40% of the core components and materials for general machinery products are made domestically.
As China still relies on imports for high-end machinery, it wants to climb the value-added ladder and find partners and technologies to bolster its domestic machinery industry.
As China’s factor costs, such as labor and raw materials, continue to rise, downstream manufacturers are being forced to acquire machinery with higher efficiency and technological sophistication. The changing environment will incentivize Chinese companies to further venture abroad and acquire know-how from advanced markets with best industry practices.
Zhejiang Kaishan Compressor Co., Ltd.
Company Overview
Zhejiang Kaishan Compressor primarily manufactures screw compressors. In recent years, the company started to expand into the geothermal electric power generation market overseas. In 2016, 17.8% of its revenue came from exports.
Cao Kejian
Quzhou, Zhejiang
(057) 0366.2177
yang.jianjun@kaishangroup.com
Global Presence
In 2016, the Zhejiang company invested $1 million to form a joint venture, Open Mountain Energy, with an undisclosed private investor. The new subsidiary company is based in Delaware and aims to scope and potentially participate in geothermal projects in the United States.
In 2015, Zhejiang Kaishan Compressor Co., Ltd. invested $2 million to form a joint venture in Singapore with Hugar Orka Ehf, in which the Zhejiang company holds a 70% stake. The newly established joint venture is called Orka Renewables.
In 2016, Zhejiang Kaishan Compressor invested over $45 million to acquire LMF Unternehmensbeteiligungs GmbH, an Austrian company that manufactures pressers used in petroleum mining and refining. In 2016, the Chinese company announced that it would acquire a 51% stake in Hungary’s Turawell geothermal company for €2 million.