Northwest Bearing approved to develop weapons and equipment

Due to the downturn in the traditional bearing business, Northwestern Bearing, which suffered a loss in 2013, announced on the evening of April 22 that the company recently received the "Armament Research and Production License" issued by the National Defense Technology and Industry Bureau. It has been valid since 2014. From April 2 to April 1, 2019. This marks a substantial breakthrough in the strategy that Northwest Bearing previously planned aggressively to enter the military product industry and promote the transition of the company.

The military themes have been favored by the secondary market since last year, and more and more companies have joined the army to find new fulcrums for the future growth of the company. Under the background of the continuous reform of the military system, the future market prospects of the military industry are widely expected.

It is understood that Northwest Bearing has always been a key enterprise in large-scale, oversized petrochemical machinery, metallurgy and mining machinery, and engineering machinery supporting bearings in China. With its technical strength, the company has also been increasing the research and development of high-end bearing products in recent years. Recently, the company has newly established 12 bearing research institutes, such as the Rail Transportation Bearing Research Institute and the Military Equipment Bearing Research Institute, and has conducted in-depth research and development for different research directions, and has endeavored to expand its main business market. According to the 2013 annual report of the company, in 2013, the expenditure on R&D of northwest bearing reached 22,440,000 yuan, accounting for 6.9% of the operating revenue realized in that year. Some analysts stated that this R&D investment is at a relatively high level in the industry.

Some brokerage analysts told reporters that this time obtaining the "national prefix" of weapons and equipment research and production license, is equivalent to providing the company with a formal entry into the military market tickets. In fact, not long ago, the company privately issued 125 million shares and raised 600 million yuan, which is intended to be used in the construction of the bearing industry recommended by the “Twelfth Five-Year” development plan of the bearing industry. The company’s move will be to expand new business for the company. Gather financial strength. “Military industry is a capital-intensive industry, and the financial strength is very important for the growth of the company. Northwest Bearing is expected to establish a firm foothold in this industry with its dual strength in technology and capital.”