SMTCL Group Invites Merchants Globally for Its General Machine Tool OEM Project   11.10.2010

    On November 10, SMTCL Group General Machine Tool OEM Project & Machine Tool Industry Cluster Merchants Invitation Press Conference was ceremoniously held in Shenzhen Economic and Technological Development Zone, which aroused huge response from 220-odd domestic and overseas machine tool vendors present at the conference.

    In the OEM Project, SMTCL would cooperate with those vendors engaged in production of CA center lathe, CW center lathe, and Z plain radial drilling machine. Foresaid three products boasted stable market shares, mature technologies, and good reputation in the industry, and they were awarded “National Quality Gold/Silver Prize” for several times. So far, their market shares respectively hit 35%, 26%, and 75%. It is the first time for Shenyang-based large state-owned equipment manufacturer to adopt OEM mode for merchant invitation, marking SMTCL Group will completely transform from the whole-chain production model to the new-type manufacture model that focuses on fine machining and integration.

    Zhao Changyi, Head of Shenyang Equipment Manufacture Industry Development Work Promotion Team and Chairperson of the Standing Committee of the Shenyang Municipal People’s Congress, attended and addressed the merchant invitation press conference. In his address, Chairperson Zhao said: “Implementation of general machine tool’s large-scale OEM transformation is a significant reform to SMTCL Group, by which, the group’s operation mode will transform from original product operation to ‘Product plus Brand plus Technology plus Service’ operation model. Besides, its production mode will evolve from the large and complete production model to the new-type corporate production model featured by market-oriented setup, socialized facilities, and specialized production. As for Shenyang equipment manufacture industry, SMTCL’s adoption of OEM mode will not only offer reference for Shenyang-based equipment vendors to make innovations in merchant invitation means and boost the product structure’s optimization and upgrade, but also speedily raise Shenyang equipment manufacture industry’s supporting capacity and expedite construction of the ‘RMB 100 Billion Industry Cluster’. As for domestic and overseas vendors, their participation in SMTCL Group’s OEM Project will bring in win-win and hard-won opportunities. By virtue of SMTCL’s brand effect, consummate marketing network, strong technical support, all cooperators can not just improve their product R & D and production level, but also ensure their marketing capacity and reinforce their risk-resistance ability. As a result, they are bound to achieve favorable economic benefits”.

    At the press conference, Guan Xiyou, Chairman of SMTCL Group, briefed attendees on OEM Project’s overall planning, and he pointed out that to achieve its strategic goal “Large and Strong, World No. 1”, SMTCL must complete three core missions: first, it should strategically adjust its product structure, namely, it should both produce NC machine in large batch and increase the OEM transformation size of general machine tool. Second, it should build up the global marketing service system, namely, it should increase the number of 4S stores at home from 7 to 10, and raise the number of overseas marketing and service companies from 4 to 20, in addition to setting up independent marketing and service platforms; third, it should integrate the finance with the industry, namely, it should establish financial leasing company to raise funds from the capital market, as a way to support technical reconstruction and operation. Chairman Guan said: “Transformation of social production by means of OEM aims to bring together manufacture resources to develop the middle and high-grade NC machine. In this general machine tool OEM project, SMTCL will foster a socialized production system based on four levels (i.e., main machine, components, parts, castings and forgings), in order to incubate 32 manufacturing enterprises, and then build up a general machine tool industry cluster with total machine tool output of 78,000 units, total scale of RMB 5.5 billion, and total castings and forgings productivity of 200,000 tons. In the merchant invitation, SMTCL will take root in Shenyang City to invite merchants from the society, and each project will invite at least two merchants, so as to form a compact social manufacture system. At the project matchmaking symposium, SMTCL Group General Machine Tool OEM Project will invite merchants globally”.

    Meanwhile, municipal leaders Li Jian and Song Tieyu attended the press conference that was chaired by Li Songlin, Officer of Sub-city Level and Chief of Tiexi District, and Vice Mayor Wu Hansheng delivered a speech.

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