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The nation's machinery industry profits will increase by 20 percent this year, according to the China Machinery Industry Federation.

The sector saw fast development last year, with some technologies in the sector reaching world-class standards, said the federation.

China's machinery sector posted 296.6 billion yuan in profits in 2006, up 36 percent from 2005, said the federation.

Total revenue for the sector exceeded 5 trillion yuan last year, an increase of 30.06 percent compared with 2005.

"The machinery industry was a major contributor to the country's industrial profits last year. And some technologies in the sector also reached a world-class level," said Cai Weici, executive vice-president of the federation.

Last year China Huaneng Group launched the nation's first 1,000-megawatt ultra-supercritical coal-fired generating units.

"The production of the 1,000-megawatt ultra-supercritical coal-fired power generating units is a milestone in China's machinery industry," said Cai.

Besides the electricity machinery sector, China's shipbuilding industry also had a breakthrough last year. The output of the industry reached a record 14.52 million deadweight tons in 2006, accounting for about one-fifth of the world's total.

The machinery industry recorded much slower profit growth in 2005 due to price hikes in raw materials like steel products, but a stable supply of raw materials helped the growth rate rebound in 2006, said Cai.

China's machinery industry achieved a trade surplus of $747 million in 2006, ending years of deficit, said the federation.

Foreign trade of machinery products reached $283.97 billion in 2006, while exports surged 36.3 percent, almost twice the 19.6-percent growth of imports, it said.

"The trade surplus in the machinery industry is a historic turning point for the sector," said Cai.

(For more biz stories, please visit Industry Updates)