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

Qi 2 Machine Tool is one of the first key enterprises in China's machinery industry during the "First Five-Year Plan" period. After over six decades of development, it has evolved into a major backbone enterprise specializing in heavy-duty, super-heavy CNC machine tools, and large-scale forging equipment. The company has supplied more than 2,000 critical pieces of equipment to key sectors across China, making significant contributions to the country's basic industrial and national defense construction.  Traditional Industry Transformation – A Breakthrough Equipped with a national-level technical center, a postdoctoral research workstation, and a provincial academic station for heavy-duty CNC machine tools, Qi 2 Machine Tool is recognized as a national innovation enterprise, a patent pilot company, an international science and technology cooperation base, and a "4A" company known for its standardized operations. 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. Since 2009, it has participated in 15 projects under the national "High-end CNC Machine Tools and Basic Manufacturing Equipment" technology initiative. Faced with challenging external conditions and internal pressures, Qi 2 Machine Tool remains committed to its mission of "embodies the will of the country and rejuvenates the national industry," closely aligning with "Made in China 2025." Through continuous innovation-driven strategies, the company has successfully transformed and upgraded its operations, creating new momentum for sustainable development in the new economic normal. Effective Market Integration Since 2012, the leadership of Qi 2 Machine Tool realized that their traditional business model could no longer meet the demands of market competition under the new normal. To adapt, the company initiated drastic market-oriented reforms aimed at enhancing operational efficiency and control. By implementing a "marketization" approach—where each unit operates independently, takes responsibility for its own profits and losses, and faces the market on its own—the company improved its overall dynamism and risk-sharing mechanisms. The most significant change from these reforms has been the shift in business awareness at all levels, leading to a dramatic increase in the autonomy and control capabilities of each unit. This transformation has gradually revitalized the company’s operational vitality. Accelerating Product Innovation In recent years, Qi 2 Machine Tool has focused on developing high-end, precise, and intelligent products. Through innovation, the company has driven transformation and created new growth momentum. It has expanded the supply of mid-to-high-end machine tools, providing critical equipment for key industries such as aerospace, defense, non-ferrous metals, and automotive. Notable achievements include the "large-scale circular seam assembly welding system" (successfully applied to the core components of the "Changzheng No. 5" rocket), the "large-scale tubular section spreading machine," and the "ultra-speed CNC gantry aluminum ingot combination milling machine" used in the "large aircraft" project and non-ferrous metal rolling production lines. These innovations have filled domestic technological gaps, reduced reliance on imported key products, and supported the urgent needs of large-scale carrier rockets, aircraft, marine vessels, and construction machinery. They have also contributed to the development of the national economy and the modernization of the defense industry. In addition to core products, the company has developed the TK6932 CNC floor-standing milling and boring machine with a 320mm diameter, designed for processing super-large parts in large ships and mechanical engineering. By introducing and absorbing foreign high-end press technology, the company has developed advanced multi-station presses for automotive manufacturing. Service-Oriented Development Qi 2 Machine Tool has innovated its marketing concept by extending the industrial chain into the service sector. The company now focuses on three key areas: custom product R&D, process design, and turnkey projects, aiming to enhance overall program design capabilities and provide users with more value-added services. It also emphasizes online monitoring, maintenance, and training to develop intelligent technologies and improve user engagement. Additionally, the company explores the remanufacturing of machine tools and expands its distribution network through equipment upgrades, major repairs, and trade-in programs. Since 2012, service revenue has grown significantly, exceeding 200 million yuan and becoming an important part of the company's main income. Today, the market acceptance of Qi 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 rose by 74%. The company plans to achieve 750 million yuan in operating income in 2018 and reach break-even.

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