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Wuxi manufacturer sees turnaround after innovation

Updated : 2016-04-20
By Jiang Luying (chinadaily.com.cn)

This is the story of a Wuxi-based company on the edge of bankruptcy, coming back from the brink and turning a multi-million yuan profit in the space of just a decade.

Wuxi Micro Research, founded in Binhu district in 1994, was China's first foreign enterprise in precision manufacturing. The company had a leading market position until 2000 through introducing Japan's management concept and technologies.

However, fierce market competition resulted in a "brain drain" at the company, resulting in the rupture in the chain of capital and triggering the plant's debt crisis, which reached its peak in 2006.

Left with no other option, the company's shareholders and the management made a decision to sell a 72 percent stake to the Hong Kong branch of financier, Guolian Group in a bid to keep the company alive.

With such bleak prospects Wuxi Micro Research decided to explore innovation in management, technology, market and development concepts.

Using its strengths in technologies and manufacturing, the company set about participating in scientific research projects soon afterwards.

The company began to carry out some of the key projects of the National Hi-tech R&D Program, also known as the 863 Program, teaming up with research institutions, like Tsinghua University.

It also set up the Jiangsu Micro-nano Manufacturing Technology and Equipment Engineering Technology Research Center and a mobile post-doctoral station.

Gradually, Wuxi Micro Research fortunes began to look up as its annual revenue grew and grew, with it soon hitting double digits.

By 2015, the company had regained its status as a force to be reckoned with, with its mold-related products bringing in 125 million yuan ($19.33 million) in output value and 17 million yuan in tax revenue.

Based upon precision molds, Wuxi Micro Research extended its industrial chain, relying on independent research and development, merger and acquisition.

Today, the company is mainly engaged in development, manufacturing and sales of air conditioning fin dies, semiconductor packaging dies, high precision connectors and precision spare parts.

Its products are exported to 15 countries and regions, including Japan, the US, Germany and Brazil.

This February, Wuxi Micro Research began to trade shares on the New Third Board, the pilot national share transfer system for small and medium-sized enterprises.

Edited by Owen Fishwick

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