Initiated by The Economic Observer together with the CCTV program Pinzhi, the Second Made in China 2025 Summit Forum and Quality China of the Year Ceremony was held in Beijing. 10 out of 100 enterprises were granted the “Made in China Distinguished Award” after comprehensive evaluation on their finance, R&D, sales, quality, production and supply chain, all being a part of the core value chain of the manufacturing industry. The organizers spoke highly of and granted the award in recognition of China Zhongwang’s excellent performance in transformation from a traditional manufacturing enterprise to a modern one which is more intelligent, informationalized and environmentally friendly.

 

As a leading manufacturing firm which was established in northeastern China, Zhongwang successfully became a world leading company following three business transformations in over two decades. Zhongwang was principally engaged in the production of construction aluminium extrusions at the very beginning. After years of development, Zhongwang made a significant strategic planning in 2002 to shift from a construction aluminium extrusion manufacturer to an industrial aluminium extrusion manufacturer, adding momentum to its subsequent growth. In 2011, on top of its existing industrial aluminium extrusion business, Zhongwang further expanded its business scope into the deep processing business and flat rolling business which enabled Zhongwang to tap into the overseas market. In 2016, Zhongwang proposed to transform from a high-end fabricated aluminium material supplier to an integrated light-weight solutions provider.

 

Through these transformations, Zhongwang entered Industry 4.0 in advance in line with the market development trend. Over the years, Zhongwang puts a high value on innovative R&D as well as intelligent development through technological innovation. Owing to its highly automated systems, most of Zhongwang’s extrusion processes are completed by machines while the large extrusion presses are operated by only a few workers. For the deep processing business with higher added value, the welding production lines are mainly handled by robots.

 

While focusing on smart manufacturing, Zhongwang has set up a unique management system. In order to control its production cost, stock and credit period, Zhongwang adopts the strategies of “producing according to sales” and “purchasing according to production” to avoid its stock risk. Zhongwang reduces its margin risk in relation to the raw material price fluctuation by using the “cost-plus” pricing principle, while maintaining a low level of account receivables and bad debts through effective management of its credit periods.

 

Meanwhile, Zhongwang enhances its comprehensive profitability through continuous product mix optimization, productivity improvement, production cost control and increase of the share of high value-added products. According to Zhongwang’s latest third quarter report, sales volume of its deep-processed products increased by 39.8% year-on-year to 75,000 tons while revenue from this segment increased by 37.8% to RMB2.04 billion from RMB1.48 billion for the corresponding period of last year.