General Introduction

Qier Machine Tool Group Co., Ltd. (reformed from Qiqihar No.2 Machine Tool Works) moved to north from Shenyangin October 1950, was the first group of important enterprise in domestic machinery industry in the period of first “five years plan” and was entitled as one of the 18 largest industrial enterprises. Through 50 years development, it has formed its own features and advantages on heavy-duty CNC milling-boring machine、heavy-duty mechanical press、large automatic metal forming machine and milling machine series. The products are mainly used in such important industries in China: national defense、military industry、aerospace、shipbuilding、automobile and energy, etc. The rate of CNC machine tools production value reaches to over 70% and the heavy-duty、super heavy-duty products to over 80%.

This enterprise is the noted base producing heavy-duty machine tool and metal forming facilities, the key enterprise supported by the national CNC machine industrialization item, the national large industrial enterprise, the high-tech enterprise in Heilongjiang Province and one of the 22 main enterprises supported by the state. The state famous Mahengchang Team is at our enterprise. Recent years, Jiang Zemin、Zeng Qinghong、Wu Guanzheng、Wang Zhaoguo and other leaders of the party and the state paid much attention to us and came to inspect in person.

   Since the establishment of the enterprise, we have produced over 60 thousands sets of various machine tools, among which the heavy-duty metal cutting machine and the metal forming machine weighted over hundred tons for one piece are more than 1000 pcs. That fills nearly 100 national blank items and offers a great number of key and large important facilities for enhancing the basic industry and the national defence ability. It is one of the famous base to provide national defense and military industry with key facilities named as the national treasure related to both national economy safety and the national defence safety and plays an irreplaceable action on the national important large equipment industry.

In the period of Tenth “Five Years Plan”, the enterprise catches the opportunity to rejuvenate the northeast senior industrial base to improve in force the important technical reform construction items. Nearly 200 million Yuan RMB is invested to move the pottery; enclose the pottery road; reunite the plant ground to be a compete one; rebuild the metal welding sub plant building; expend building of  the air conditioned assembling workshop、heavy-duty machine assembling and machining workshop; add 60 sets of important facilities and devices such as the CNC milling and boring machine、large external grinding machine and the CNC gear grinding machine; resume the resin sand production line; continuously perfect the computer integration manufacture、build up the enterprise inner local area network and become the main demonstration enterprise of CIMS program. The technique center has been assessed as the national technique center and the products have passed the international quality authentication.

Advantage of the products

The enterprise has achieved historic outstanding achievements on CNC machine developing and creates “multi-firsts” for the Republic. The first CNC vertical milling machine in our state was developed in 1958 by cooperating between the enterprise and Beijing Machine Institution, which opened the first page of developing history for Chinese CNC machine; the first heavy-duty floor-type milling and boring machine in our state was designed and developed in 1974; the first CNC Plano-milling machine in our state was developed in 1975; the first heavy-duty CNC floor-type milling and boring machining center in our state was developed in 1993; the first heavy-duty CNC multi-link press production line in our state was developed in 1994 .

The leading products of our company are: the heavy-duty floor-type milling and boring machine (CNC type and the general type included)、the automatic metal forming machine, the technology and the productivity of which are on the top position in tour state. The engineering level of heavy-duty mechanical press and the milling machine product is on leading position in domestic industry, the output and production scale of which is on the second position in the state. The outstandingness of the products is “heavy-duty”. The production value rate of the heavy-duty、super heavy-duty machine tools reached 80% and of the heavy-duty metal cutting machine jumped to the first position in the same business in China in 2005.

——Heavy-duty milling and boring machine products

Recently, we take the slogan “equip China with our equipments” as our responsibility, insist on initiative innovation in our own hands, develop in force the most competitive products with our own patent. We have made great breakthroughs in many key technical fields that strengthen the power of our nation and turn back the import of machine tools. Take developing the key heavy-duty CNC products urgently needed by national defense and military industry and other national principal industry— the CNC floor-type milling and boring machine series as the research direction. We have acquired the core technical advantage to develop the heavy-duty CNC products; the output and CNC machine production value rate get increased in large scale. The enterprise has become the national heavy-duty floor-type milling and boring machine manufacturing base occupying the most market with the most variety of products and has the best ratio of performance and price, products of which stand for the state manufacturing capacity. Because the main parts、the accuracy and the function of the floor-type milling and boring machine have closed to the national level meanwhile the price is half cheaper than the same product in abroad, so we have gotten 90% of the bids that many famous manufactures in and abroad attended and our products have gotten an absolute vantage status since the latter half year of 2003. At present, we have produced more than 300 Pcs of heavy-duty floor-type milling and boring machines occupied 80% of the domestic market, more than 100 of which are served for the national defence and the instruction of the military industry. For example, TK6925, super heavy-duty CNC milling and boring machine developed for Wuhan Shipbuilding machinery factory to machining the vessel propellers is the largest product among the domestic same variety of the machine, which boring spindle diameter is 250mm , vertical travel is 5m and longitudinal travel is 18m . It can move in 4 axes simultaneously and controlled by 9 axes. The State Economic  and Trade Commission has listed the contraposition-type milling and boring machine produced for Inner Mongolia No.1 Machine Tool Works to machining armor tank chassis frame on the great important technical equipment innovating developing item. In 2006, we plan to produce 100 sets of heavy-duty floor-type milling and boring machine. The producing cycle for one pcs is 3 days, which creates the most productivity of the heavy-duty floor-type milling and boring machine in the world.

——Heavy-duty CNC press machine

The state-supported products that replaced the import products are key facilities which are used in motorcycle and automotive industry to press lids. We have produced the crank-type mechanical press and the CNC multi-link mechanical press by importing technology of Komatsu Japan and Erfurt Company Germany . The level of our products is advanced domestically. The ratio to share the domestic market for our press products ranked at the second. We have provided more than 200 sets of mechanical presses with different specification for the large domestic automobile manufacturer, among them two pressing production lines with capacity of 150000 cars for FAW-VW are included which are composed of 12 sets of CNC multi-link state-of-the-art presses.

——Metal forming machine

This enterprise is the developing and producing base in our state for the automatic press machine. The output and the technical level are on the leading position all the time. Qiqihar automatic metalforming machine research institute, the state automatic metalforming forming industrial technique resided in which is located in company’s yard. The large automatic metalforming machine products share 80% of domestic market.

   ——Milling machine

Qier Machine Tool Company as the pioneer to produce milling machine, upgrades the traditional product that is well known as the domestic name brand. It has become the enterprise to produce the milling machine with the most specifications and varieties.

   

Technical cooperation

The enterprise emphasizes on international cooperation. Through cooperation, we bring in the design and manufacturing technique for produce the floor-type milling and boring machine center from Innse Company Italy, the large scale Plano-machine for machining five planes from Homma Company Japan, CNC automatic metal forming machine from Sakamura Japan, the heavy-duty CNC hydraulic press from AP&T Company Sweden and other famous machine tool enterprises. We can offer series products with independent initiative innovation on our own hands by absorbing the imported techniques and further design.

 Enforcing the combination between production、study and research, this company has developed cross machine tool, CNC twisting machine tool, top grade facilities for national defense, through cooperation with Tsinghua University, Harbin Institute of Technology, Yanshan University and Hebei Institute of Technology to speed up the configuration adjustment of the products thus greatly enhanced the developing and manufacturing engineering level and capacity for CNC machine tools. We can provide 10 series products approx. 400 varieties, 80 of which respectively win the national, provincial and civic technical progress prize and excellent new product prize. We are building the high-tech development base in Qinhuangdao city. Also we have signed the joint venture contract with Wafangdian Machine Tool Company and Sedin-Schiess Company Germany . In 2004, we purchased the state-owned stock right of Sanming Machine Tool Works Fujian Province.

Economic target

We fully enhance the competitive ability and increase economic growth at a very high-speed. The main economy target grows at the average speed over 80% per year, 40% higher than the speed in the same field. The target of production value per capita is on the former position in this field. The gross production value in 2005 is 10 times greater than in 2001; the selling income is 7 times higher than in 2001. We have 1.1 billion Yuan RMB contracts on hand. The level of the employees’ income is 10 times than in 2001. We plan to finish the industry gross product value of 1.8 billion Yuan RMB in 2006.

Reform and Recombination

The Party’s Sixteenth National Congress puts forward the strategic decision to rejuvenate the northeast senior industrial base. Under the support of the policy, the leading group of our enterprise caught the opportunity, contact with governments at different levels and finance department, take one year and made a great deal of works, which made the senior No.2 Machine Tool Works first enjoy the favored policy in Heilongjiang Province and among the domestic same industries in January 2004 to bankrupt approved by the State Council.

The main problem troubled this enterprise after bankrupting is how to take care of the employees properly, how to ensure the enterprise and society political stabilization meanwhile making a strong base for the reformation and combination. Last July, premier Wen made two important indications focusing on developing the equipment manufacturing industry. The CNC machine tool industry was formally listed as one of the 16 special developing items in Eleventh “Five Years Plan ”. Under the promotion, China Development Bank as the national bank on their own initiative built the heavy-duty CNC machine Group with loan in accordance with the policy according to the state strategic deployment for revivifying the equipment manufacture and the policy to accelerate the development of the CNC machine industry. Now Qier Machine Tool Company has gotten the sum of 450 million RMB from the bank to support the reformation and the subsequent development for them.

The establishment of Chinese heavy-duty machine tool Group that China Development Bank attends to build has a significant meaning. It is the realistic choice to carry on the strategic decision for revivifying the equipment manufacture industry and also the important measure to maintain the national economy and defense as well as to realize “the state strategy”. The property owned by the state not only can be kept avoiding losing, but also is important concrete measure to establish modern enterprise system and realize multi entity possessing the property on the promise of that capital owned by the state held the company’s stock. It is the first creating in our state to reform the enterprise owned by the state that the state bankrolls and China Development Bank take part in it, which has pointed the direction for reforming the large enterprise owned by the state. This practice was carried out firstly in Qier Machine Tool Company.

To ensure the reformation and recombination going smoothly, the enterprise takes opening the mind、changing concept、intensifying educating concerning on the reformation as the key work for the party committee. The enterprise propagandized the meaning and the policy of the reformation to the employees by many ways, which improved the employees’ realization for the necessity and significance of the reformation、enhanced the employees’ endurance for the reformation、made the party members and the employees properly deal with the relationship between the individual benefits and the collective benefits and devoted to the reformation activity. According to the relative policy, we insist on the principle that to run the enterprise from the benefits of the employees under the process of taking care of the employees. The enterprise fully considered the employees benefits and provided the installation grant and the owed salary etc. The laid off people and the retired people got good care and they all satisfied with the consoling project. The other employees change their state-owned identity and bought the share voluntarily. By now the new combined enterprise has been running and the origin enterprise has become a subsidiary company of the new enterprise that its stock is state owned. It is waiting to joint the China heavy-duty machine combined company.

After the reformation and recombination, the enterprise will take the slogan “equipped with  excellent facilities、produce first class product and establish number one enterprise” as the aim. On the development of the product, we will be guided by the demands of important industries in the state, take developing new CNC product as the key point, make the most use of the advanced technical platform of the CNC machine in the world, increase the investment amount in science and technology, improve the innovating and development ability, develop the new product of the CNC machine and the metal forming machine, which help us to compete with other products in the same field and build up our own international brand. On technical innovation, we enforce to exploit the key technical skill and adopt new type of functional parts. Under the support of China development bank, we increase investment amount of technical reformation, improve the technical level and equipment level, perfect the construction of the national technical center, strengthen the combination of the produce、study and research and the technical cooperation with other provinces and other countries.

This time the China development bank and investing company help Qiqihar No.2 machine tool works successfully carry out the system reformation of the state owned enterprise, change the state owned identity of the employees’ with the input of the soft loan, which injects the energy to our enterprise, open a new road for the reformation and recombination of the enterprise and maintain the social stabilization.

Future program

The combined company has determined the developing line during the Eleventh Five year Plan: make the best use of the national policy of revivify the northeast senior industrial base and develop the industrialization of CNC machine; insist on the technical progress; continuously improve the designing level、equipment level、scientific management level and the integrative strength through innovating the system、technology and management, provide advanced technology and complete equipment for the national defense、military industry and national important construction. We accelerate the industry structure adjustment and the property right reformation; promote the coordination and the recombination of the principal part and the corn industry; carry on the reconstruction on important technology; accelerate the industrialization base construction of the heavy-duty、new、middle and top grade CNC machine; build up the name brand in and abroad; make the Qier machine tool company become the world famous modern enterprise with international competitive power.

To 2010, we plan to realize the gross aim that the industry gross production value can reach to 5.57 billion RMB and the production value per capita can reach to over 1 million RMB. The productivity of various machine tools is 4267 sets. The sale income can reach to billion RMB and realize 1.25 billion RMB profit and tax. The gross investment for technical reconstruction is 2.69 billion during the eleventh "five years plan". The average increasing speed per year of the production value is over 40%. The production value of CNC machine can reach to over 80%. To 2010 we will earn $125 million through export. The export production value can reach to 20% of the gross value.

During the Eleventh "Five Years Plan,” the general strategic aim of the enterprise is that to build up the largest、the most advanced heavy-duty CNC machine manufacture with the strangest competitive ability— the core subsidiary company of China CNC machine company. To 2010, the heavy-duty machine products of the enterprise will have outstanding advantages. The production value will be the No.1 in the state. We will realize the target to construct 3 bases and 1 center that is the international heavy-duty CNC machine manufacture base; the national modern forming technology researching and developing industrialization manufacture base; the national modern CNC machine industrialization manufacture base and the national enterprise technology and engineering center. To create world top-ranking heavy-duty CNC machine manufacturing enterprise is our great aim. We provide a great lot of modern equipment、top grade CNC machine products for national important items and national defense construction by set and by line. The products face to the national and international markets. We will become the enterprise which products level、management level and equipment level reach to the international advanced level and the economic profits、the gross productivity near the advanced level of the developed countries in this field.