Why is the market downturn in multinational companies still expanding in China?

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Abstract On July 31, the author participated in the opening ceremony of the new factory held in Dalian Jinzhou Economic Development Zone by Dalian Tiye Kaikai Shaft Industry Co., Ltd. (referred to as Dalian THK). He was deeply touched and had some thoughts to share with readers. "Conservative&rdquo...
On July 31, the author participated in the opening ceremony of the new factory held in Dalian Jinzhou Economic Development Zone by Dalian Tiye Kaeva Shaft Industry Co., Ltd. (referred to as Dalian THK). I was deeply touched and had some thoughts to share with readers.

"Conservative" and "big hand"
The Japanese are very rigorous and conservative, have a strong sense of risk, and have strict risk control. Anyone who has had contact with the Japanese can clearly feel their style of doing things. Therefore, it will be concluded that the Japanese will not make "big-handed" actions without careful investigation and evaluation beforehand and without careful consideration. Because of this, in the global economic situation is not good, the market demand for machine tools continues to decline, Dalian THK has invested 180 million US dollars, registered capital of 60 million US dollars, relocating the new factory (the area of ​​the new factory It is more than four times that of the old factory), and the production capacity has been expanded (in the future, it will reach 50,000 sets of ball screws per month). Even a relocation ceremony has been made so grand (more than 500 users eat and live all-inclusive), can't stop People are shocked!

As everyone in the industry knows, since the second half of 2011, the machine tool industry has continued to decline, capital is tight, overcapacity, inventory has increased, and profits have fallen sharply. In the face of shrinking markets, most companies are slimming down, downsizing to survive, and expanding production capacity is almost a fantasy, but why is Dalian THK doing the opposite?

At present, China's industrial economy is in a critical period of transformation and upgrading, and there is a large demand for high-end machine tools; and Chinese machine tools are in urgent need of transformation and upgrading to the high-end market. At this time, the situation of the domestic machine tool industry is very difficult, especially for enterprises that provide functional components for machine tools. It is even more difficult, orders are falling, costs are high, and they are struggling. This was seen by Dalian THK, and it took no time to make plans to relocate new plants and expand production capacity. We have to admire the unique strategic vision of the Japanese and admire them to prepare for the future development.

Undoubtedly, if you want to seize the opportunity, you must have a unique strategic vision and a strong enough economic strength. Japanese machine tool companies, such as Mazak, THK, etc., rely entirely on the accumulation of funds accumulated over the years, neither listing nor loans; even loans, in Japan, are interest-free loans. Therefore, funding is not the biggest difficulty. This alone has an advantage over Chinese companies in terms of operating costs.

Pragmatic and confident
Japanese companies are notorious for their group. As long as there are matching products in Japan, they will never use foreign products. But the situation I saw at the new THK plant in Dalian changed our usual view. In the well-equipped workshop, although the proportion of equipment produced in Japan is the highest, there are also some German equipment. What we can't think of is that there are actually Chinese-made equipment, and there are still a lot of machines, and the machine tools are not small.

For example, in the precision grinding workshop, we saw a group of Guangzhou Minjia CNC thread grinders, which are arranged in two rows. If you don't look at the trademark on the machine, you can't really see the Japanese machine tool next to it. What is the difference. Although THK’s use of Minjia’s equipment has been heard before, it has been doubtful, and this time it’s a blind eye. Also, in the heat treatment workshop, the largest piece of equipment is a CNC quenching machine produced by a company in Yancheng, China. It can process 14-meter-long workpieces, which is very spectacular, and the machine tool works very well.

From this incident, we saw the pragmatism and self-confidence of THK, a world-class enterprise, and on the other hand, it also confirmed that Chinese equipment, as long as it can be done well, will be judged by world-class enterprises. At the same time, it also has a strong contrast with the use of domestically produced equipment and domestically produced functional components by our domestic individual users.

"The wolf is coming again" and the "squid effect"
The relocation and expansion of Dalian THK is undoubtedly a signal to the domestic machine tool industry, especially the rolling functional components industry, to let the Chinese counterparts in the dilemma take a breath.

Imagine if it wasn't THK that made money in China in the past 20 years and saw that there is still a market that has not been tapped. Can they expand production in China? Therefore, they have identified the needs of users, and they have also seen opportunities, and certainly look forward to the redistribution of market share in the future. This is also the worry that Chinese counterparts feel that "the wolf is coming again."

This leads to the "squid effect." A squid is placed in the aquarium, which stimulates the living environment of the small fish and activates the survival ability of the small fish. Will Dalian THK be the squid that activates Chinese counterparts to actively participate in market competition? After years of experience, the domestic rolling functional parts industry has made great progress compared with the previous years. With the implementation of high-end CNC machine tools, major manufacturers of rolling functional components in the country have made breakthroughs in materials and heat treatment, which can ensure the production requirements of high-end roller screws. At the same time, great progress has been made in the processing technology stability of mass-produced high-grade ball screws. The product quality and reliability are not much different from those of overseas products. It is believed that with the successful use of more and more users, the domestic functional components completely replace the overseas brand products in the performance just around the corner! (Author: Yan Xiaoyan) (Please pay attention to the follow-up in-depth reports about the rolling feature industry)

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