Center

Toolmaker wants to be cut above rest

By Jiang Jingjing (China Daily)
Updated: 2007-04-13 10:43

Kennametal Inc, a leading international cutting tool solutions supplier, is determined to maintain its growth in China at 40 percent annually, three times higher than that of the domestic industrial production index.

"We aim to increase the market share from the current single digit to our global level 17 to 20 percent. We want to be the market leader here," said Corporate Vice-President Ronald Keating during the ongoing China International Machine Tool Show.

China has already become one of the highest priorities for the US company. "Our strategy here is exactly the same as in other major markets, such as North America and Europe: bring state-of-the-art products, the latest and greatest technology and the best-cost solutions to increase local clients' productivity," Keating said.

China's tool market stands at $1 billion a year, but the competition is tough, especially from the numerous domestic players.

Keating said what differentiates Kennametal is that many of its rivals sell tools only, while Kennametal provides complete solutions to enhance clients' competitiveness.

Local customers are beginning to understand that what they look at should not just be price, but rather the cost of operation and productivity, he said.

The company last year launched its Tianjin plant, with an investment of over $30 million, producing the full line of Kennametal's products. It was the largest single investment since the firm entered the market in 1991.

The facility covers 15,000 square meters and is expected to expand to 42,000 square meters. Its staff number is expected to grow from 200 to 400 soon, he added.

Keating also said the company is evaluating its mining and construction factory in Xuzhou, of Jiangsu Province, and seeking expansion. But no decisions have been made.

To provide tailor-made products and services, the firm has relocated its customer solutions business to China, sending experts from the headquarters.

Kennametal has also started an educational campaign across China, targeting technical universities and colleges. It recently donated 1 million yuan worth of metal-cutting tools to universities in Tianjin and 6 million yuan worth of tools to institutions in Wuxi of Jiangsu.

(China Daily 04/13/2007 page14)