Qie Machine Tool's traditional industrial transformation "breaks through" speeding up product innovation

Qingdao No. 2 Machine Tool, a pioneer in China's machinery industry during the "First Five-Year Plan" period, has evolved into one of the country's leading enterprises specializing in heavy-duty and ultra-heavy CNC machine tools, as well as large-scale forging equipment. With over six decades of development, it has supplied more than 2,000 major pieces of equipment to key sectors across China, playing a crucial role in the nation’s industrial and defense construction. The company is home to a national-level technical center, a postdoctoral research station, and a provincial workstation for heavy-duty CNC machine tools. It is recognized as a national innovation enterprise, a patent pilot company, an international science and technology cooperation base, and a “4A” compliant company. The “QI II” brand has earned the titles of “China Famous Brand” and “China Top Brand Product.” To date, the company holds 145 authorized patents, including 12 invention patents, and has undertaken 15 projects under the national “High-end CNC Machine Tools and Basic Manufacturing Equipment” technology initiative since 2009. Faced with challenging external conditions and internal pressures, Qingdao No. 2 Machine Tool remains committed to its mission of “embodies the will of the country and rejuvenates the national industry,” aligning closely with the goals of “Made in China 2025.” Through continuous innovation-driven strategies, the company has successfully transformed and upgraded its operations, creating new momentum for sustainable growth in the new economic normal. To adapt to market demands, the leadership team initiated a comprehensive market-oriented reform in 2012. This involved restructuring the company into smaller accounting units that operate independently, take responsibility for their own profits and losses, and face the market directly. A market-based selection mechanism and performance-driven salary system were introduced, strengthening the company's overall operational efficiency and risk-sharing capabilities. The most significant change brought by these reforms has been the shift in business mindset across all levels of the organization. The greatest benefits include enhanced autonomy, improved control, and increased operational dynamism. These changes have created a more agile and responsive corporate environment. In terms of product innovation, Qingdao No. 2 Machine Tool has focused on developing high-end, precise, and intelligent machine tools. It has developed critical equipment such as the “Large-Scale Circular Seam Assembly Welding System,” used in the production of core components for China’s “Changzheng No. 5” rocket, and the “Ultra-speed CNC Gantry Aluminum Ingot Combination Milling Machine,” applied in the “large aircraft” project. These innovations have filled domestic technological gaps and reduced reliance on imported technologies, supporting key industries like aerospace, defense, and automotive manufacturing. Beyond its core products, the company has also introduced advanced machinery, such as the TK6932 CNC floor-standing milling and boring machine, designed for processing super-large parts in shipbuilding and large-scale engineering. Additionally, through the introduction and adaptation of foreign press technology, the company has developed world-leading automotive manufacturing presses. In the service sector, Qingdao No. 2 Machine Tool has expanded its offerings by enhancing its value-added services, including custom product development, process design, and turnkey solutions. It has also focused on online monitoring, maintenance, training, and remanufacturing services, improving customer engagement and long-term relationships. Since 2012, service revenue has grown significantly, surpassing 200 million yuan and becoming a vital part of the company’s main income. The company now places equal emphasis on both product and service market development, laying a strong foundation for future transformation and growth. Currently, the market acceptance of Qingdao No. 2 Machine Tool’s products continues to rise. In 2016, new orders increased by 55% year-on-year, and in the first half of the year, orders grew by 74%. The company aims to achieve 750 million yuan in operating income in 2018 and reach profitability.

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