Premier calls for in­no­va­tive ideas so ma­chines can be built in China

China Daily (Hong Kong) - - TOP NEWS - By HU YONGQI in Baoji, Shaanxi huy­ongqi@chi­nadaily.com.cn

Premier Li Ke­qiang called on do­mes­tic man­u­fac­tur­ers to make China’s own ro­bots — a vi­tal part of the Made in China 2025 strat­egy — with fur­ther tech­ni­cal and or­ga­ni­za­tional in­no­va­tion dur­ing his visit to Shaanxi prov­ince, which ended on Tues­day.

Equip­ment man­u­fac­tur­ers should boost em­ploy­ees’ en­thu­si­asm and en­cour­age them to de­velop new tech­nolo­gies for the ro­bot­ics in­dus­try and to bring smart man­u­fac­tur­ing to a higher level, Li said on Mon­day dur­ing a tour of Qinchuan Ma­chine Tool & Tool Group Co, Ltd, a lead­ing com­pany in Baoji in the north­west­ern prov­ince.

Li’s com­ment came af­ter learn­ing the com­pany had de­vel­oped and made in­dus­trial re­tarders, a key com­po­nent in ro­bots.

In the past, China had to im­port the com­po­nents from for­eign man­u­fac­tur­ers. Li called on em­ploy­ees to make China’s own ro­bots with in­de­pen­dently de­vel­oped tech­nolo­gies.

Since Made in China 2025 was pro­posed in the an­nual Govern­ment Work Re­port that Li de­liv­ered in 2015, equip­ment man­u­fac­tur­ing and the ro­bot­ics in­dus­try have boomed in the world’s sec­ond­largest econ­omy. The stock price of Shenyang Ma­chine Tools Co, the na­tion’s largest ma­chine tool maker, soared that year by six times to 42 yuan ($6.15).

Qinchuan, the third-largest com­pany in the sec­tor in terms of rev­enue, now is one of the few ma­chine tool makers to show a profit, with a net profit of 14.9 mil­lion yuan last year. The com­pany has kept a cou­ple of records in Asia in high-pre­ci­sion ma­chine tool mak­ing, said com­pany Chair­man Long Xingyuan.

Ma­chine tools, which im­prove the qual­ity of goods pro­duced by their cus­tomer com­pa­nies, are an essen­tial part of equip­ment man­u­fac­tur­ing, as China still has to im­port high-end ma­chines for the man­u­fac­tur­ing in­dus­try. Mean­while, equip­ment man­u­fac­tur­ing is un­der­go­ing pro­found changes.

Long said about 98 per­cent of large-scale ma­chine tools are cus­tom­ized for each client. About three-fourths of his em­ploy­ees have built their teams to boost tech­no­log­i­cal in­no­va­tion and pro­vide dif­fer­en­ti­ated ser­vices to clients.

Li said tra­di­tional, stan- dard­ized pro­duc­tion no longer adapts to cus­tom­ized de­mands. Big com­pa­nies should pro­mote en­trepreneur­ship and in­no­va­tion to re­main com­pet­i­tive, he added.

In ad­di­tion to tech­no­log­i­cal in­no­va­tion, Qinchuan has de­vel­oped a new model to serve clients by mak­ing clear how long a ma­chine tool can earn enough prof­its to cover the cost, Long said.

For ex­am­ple, one of Qinchuan’s ma­chine tools pro­duces wheel gears for new en­ergy ve­hi­cles and can earn about 12,000 yuan in net in­come per day. Long said one such ma­chine tool can pay for it­self in about 13 months even though it sells for 4.56 mil­lion yuan.

In­no­va­tions have re­sulted in ex­panded busi­ness, as the com­pany achieved a 31 per­cent in­crease in rev­enue, to 2 bil­lion yuan, from Jan­uary to May. And the com­pany’s prod­ucts are ex­ported to 15 coun­tries, com­pet­ing with Ger­man and Ja­panese man­u­fac­tur­ers in the in­ter­na­tional mar­ket.

WU ZHIYI / CHINA DAILY

Premier Li Ke­qiang vis­its the shan­ty­town re­con­struc­tion project in Baoji, Shaanxi prov­ince, on Tues­day. Formed in 1950s, the com­pound in­cludes 156 house­holds, and res­i­dents will be moved out soon. The stop was part of Li’s visit to the re­gion, which con­cluded on Tues­day.

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