In 2002, the total industrial output value of Enterprises above Designated Size in China's general machinery industry was 121.488 billion yuan (current price), an increase of 17.35% over the previous year; the sales revenue was 113.125 billion yuan, an increase of 17.98%; and the total profit was 7.201 billion yuan, an increase of 36.56%. This shows that the economic operation of general machinery industry continues to maintain a high growth rate. The reason lies in the strong demand for general machinery in petrochemical and metallurgical industries, such as technological transformation projects and urban infrastructure projects aiming at energy saving, consumption reduction and environmental improvement. In 2002, Baoji Petroleum Machinery Plant and Lanzhou Petrochemical machinery plant produced more than 80 large-scale oil rigs of 3000-7000 meters, including 10 export rigs and some electric driven rigs, which was the second peak of demand after the war of one hundred rigs (both 1000-1500 meters) in 1978. But at the level of product technology, the drilling rig of that year can't be compared with the high-tech drilling rig now.

　　In 2002, the output of power air compressor in gas compressor industry increased by 145% over the previous year, especially that of small and medium-sized screw compressors. The main reason is the sudden increase of water conservancy, railway, transportation, urban infrastructure construction and real estate development and construction projects. Under the condition that state-owned enterprises and "three capital" enterprises can not meet the market demand, there are a number of private enterprises that rely on the assembly and development of imported machine heads from abroad.

　　In 2002, through energy conservation and consumption reduction renovation, steel mills and refineries continued to maintain strong demand for axial compressors, centrifugal blowers, blast furnace residual pressure energy recovery and refinery tail gas energy recovery devices. Shaanxi blower works produced more than 40 axial compressors in 2002, with an output value of 700 million yuan, an increase of 75% over the previous year, which is rare in the world's axial compressor manufacturing industry.

　　The printing machinery industry continues to maintain a good development trend, with major economic indicators growing by a large margin. According to the statistical analysis of 42 key printing machinery enterprises, the comprehensive economic benefit index is 138%. The export of printing machinery products also showed a good momentum, with the export delivery value up 30.5% over the previous year.

　　Central air conditioning for construction continued to maintain high demand in 2002, with sales revenue increasing by more than 16%. In 2002, the output value of refrigeration and air conditioning of Dalian iceberg group exceeded 4 billion yuan. Progress has been made in the localization of major technical equipment, and a number of major equipment has been delivered for use. The 600000t / a ethylene transformation project equipment provided by Shenyang Blower Works for Shanghai Jinshan Petrochemical and Yangzi Petrochemical Co., Ltd. was successfully started at one time. Eight large-scale water diversion pumps provided by Shenyang Pump Works for Dongshen Water Diversion Project last year have also been delivered to users, laying a foundation for the development of large-scale water diversion pumps in the future. With the rapid development of private enterprises and "three capital" enterprises, they have gradually become the main force of general machinery industry. Especially in the valve, pump and gas compressor industries, the output value of private and "three capital" enterprises accounts for more than 70% of the total output value. According to the statistics of the National Bureau of statistics, the sales revenue of valve enterprises above Designated Size in China last year was 14.769 billion yuan, including 3.5 billion yuan in Yongjia County, Wenzhou, Zhejiang Province. In addition to the traditional medium and low pressure valves, many enterprises have begun to mass produce high-pressure power station valves, petrochemical corrosion-resistant valves, etc. Although the general machinery industry continued to maintain a high growth rate in economic operation last year, there are still many problems.

　　First of all, the shortage of working capital has not been improved, especially in some large state-owned enterprises with heavy historical burden, high liabilities and large financial costs. In addition, unreasonable payment methods and serious user arrears, the working capital is becoming more and more tense.

　　Secondly, the disordered competition in the industry is further intensified, and the competitive price reduction is almost reflected in all products in the general machinery industry, especially in the air separation industry, gas compressor industry and pump industry. The result of disordered competition is a substantial increase in output value and sales revenue, while the economic benefits of enterprises continue to decline. For example, as a result of the competition among the three major manufacturers in the air separation industry, the annual profit loss is more than 100 million yuan; the competition among the refrigeration and air conditioning industry in the cold storage equipment and central air conditioning unit is also very prominent.

　　Third, the concept of using domestic equipment has been weakened by users, especially after China's accession to the WTO, some people think unilaterally that localization should not be proposed again. Some products have been used well by domestic enterprises, but still can not be used by domestic users. For example, cracked gas turbine compressor and propylene compressor for 60 t / a ethylene transformation project have been successfully applied in Shanghai Jinshan Petrochemical Company and Yangzi Petrochemical Company, but some large petrochemical enterprises still insist on buying foreign products.

　　Fourth, most of the large state-owned enterprises have shown a good momentum of development through deepening reform and adjusting their product structure, but a few of them are still in the situation of loss, insolvency or facing bankruptcy. Some of these enterprises have long-term team instability, some have joint venture problems, and some have improper transformation operation. Among them, the problems brought about by joint venture and transformation are of particular concern.