Yueqing Xinchun Fastening Piece Co., Ltd started its development in Leqing City, Zhejiang Province as a individual workshop in 1994 and moved to Lishui Economic Development Zone in 2014 with its name changed to Zhejiang Xinchun Fastening Piece Co., Ltd. Now it has become a large-scale manufacturing company with world-class products. Currently, its plants cover an area of near ten thousand square meters, equipped with more than 200 processing machines, and a privately-built examination room. XINCHUN is registered as its trademark. All achievements can’t be gained without unremitting efforts of its staffs and correct development strategies of Mr. Yang Chun, president of the company during different development stages.

In 2000, Mr. Yang took over the company as a successor from his father and began his career in fastener industry. At the time, most of industrial aluminum accessories and like products such as hammer head nut in China had to be imported from overseas manufacturing companies with high price. Mr. Yang saw the business opportunity. He started to lead the company to produce these kinds of products. When they launched their products, the prices were only equal to 1/4 of the prices of like products in market but their products were much better in quality which helped them quickly gain market shares. He said, “One of our clients told me that almost all exhibiting samples our competitors displayed at Chinese automation industry exhibitions were produced by us. When the economic crisis broke out in 2008, our sales increased by 100%.”

The year of 2010 was another important phase of the company. After over a decade of development in domestic market, Mr. Yang led the company to expand overseas markets. The products of the company are industrial aluminum components, most of which are largely used to produce industrial automation machineries, thus European market was its main market due to high degree of industrial automation. He said, “Our annual sales reached near 30 million Yuan at present, and it’s expected to grow by 50% in 2018. Our development strategy is turned from ‘Gaining market shares based on lower price’ to ‘Gaining market shares based on high quality products and service’. In future, I will keep optimizing the internal management of our company to be favored by more clients.”

With 15 years experience in the industry, Mr. Yang realized that fasteners were tiny and inconspicuous but vital. To ensure their product quality, he registered own their trademark, introduced ISO international management system, built testing room and managed their production and testing in international standard to guarantee all pieces of products to be qualified. What’s more, he thought that creativity was the main source to improve an industry and a company. If a company would like to develop sustainably, it needed to maintain the quality of current products and develop more new products. Every year, Mr. Yang will invest more than 30% of the profits of the company to purchase new machines and to develop new products.

The proposal of the concept “Industry 4.0” promoted the development of automation. Mr. Yang thought that automation will be a focus in global industry. Xinchun has been equipped with automated assembly line. In recent years, global manufacturing industry is shifting to India, Vietnam, Africa and other emerging markets, thus its sales in these markets are growing. He will expand the production scale and put more efforts in the field of automation parts.

China’s government launched policies for cutting overcapacity. The reducing output of Chinese steel and environmental inspection caused the increasing steel price, and production costs of fastener companies were growing as well. In order to guarantee profits, Mr. Yang didn’t cut expenses but spent a lot of money purchasing advanced machines to improve their manufacturing technologies to increase product value and to lower production costs. He said, “Our strategy to improve product quality got good results and some carbon steel products exported abroad reached a new record to more than 0.3 million Yuan per ton.” He will focus more on the industry in the future, fasten their products with their clients, and build a better future together.

The article is the back cover story of 23rd issue of ChinaFastener Magazine. More articles, please visit www.chinafastener.com/magazine