China will implement new policies to support key construction-machinery components manufacturing industry in its 12th Five-Year Plan (2011-2015), and the industry will embrace the best investment opportunity, China Securities Journal reported Monday.

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China Construction Machinery Association (CCMA) has handed in two policy-support proposals to the Ministry of Industry and Information Technology, Su Zimeng, secretary-general of the association, told the paper.

The output value of China's construction machinery industry is expected to break 400 billion yuan ($60 billion) by the end of this year, and is likely to hit 900 billion yuan by 2015, the report said.

However, the development of the country's construction machinery is subject to the manufacturing ability of key components, as most hydraulic parts and transmission systems rely on imports, the report added. The rise in costs will make Chinese enterprises lose international competitiveness, it said.

Insiders told the newspaper that the CCMA encourages big manufacturers to organize a technological alliance to develop bottleneck technologies, the report said.