Zhejiang Huaye Promotes China’s Screw Industry to the World

"The two characters 'Hua Ye' are derived from 'Chinese industry,'" said Xia Zengfu, founder and chairman of Zhejiang Huaye, in a recent exclusive interview with the Shanghai Securities News reporter. "We hope to diligently contribute to our country's industry. This name reflects our ambition to thoroughly execute small tasks and strengthen our industry."

For nearly forty years, starting from a second-hand modified screw milling machine on Jintang Island in Zhoushan, Zhejiang Huaye has developed like a continuously self-improving screw, deeply rooted in its niche and ultimately becoming an industry leader. Today, this enterprise is embarking on a new growth cycle with the determination of being rooted in the era, the vision to lead the industry, and the courage to break boundaries.

- Focus on screws -

"Since its establishment in 1994, Huaye has focused on the niche field of core components for plastic machinery. When we first started, there were already many small screw workshops in Jinshan, Zhoushan, but their products were low in precision and short in lifespan. We set our sights on 'making a reliable screw,' introduced CNC equipment, optimized processing techniques, and adhered to a quality-first approach. For 30 years, we have consistently polished and researched, delving deep into our expertise to establish a category advantage," Xia Zengfu recounted when discussing the initial positioning of the business.

Xia Zengfu leads the team in focusing on technological innovation and quality improvement. They continuously introduce advanced production equipment and cultivate professional technical talents. After countless days and nights of research and practice, they have successfully overcome numerous technical challenges. The screws produced by the company have gradually reached international advanced levels in terms of precision and durability. With reliable product quality, Zhejiang Huaye has begun to stand out in the market.

As downstream industries upgrade from traditional plastic products to 3C electronics and automotive components, the industry's demand is growing rapidly, while also requiring high temperature resistance, wear resistance, and high precision for screw barrels. Xia Zengfu quickly realized that simply selling standard parts could no longer meet market demands. Huaye swiftly adjusted its strategic positioning, transitioning from a single "product seller" role to becoming a "leader in plastic machinery component technology and solution provider."

In 2023, the company assisted Yizumi, a benchmark enterprise in the field of Chinese equipment technology, in developing an 8500-ton ultra-large precision intelligent injection molding equipment, providing a high-quality, high-precision screw with a single diameter of 270mm. This screw utilized the company's independently developed PTA "double-layer cladding" process, which not only meets the hardness requirements of the screw but also incorporates tungsten carbide alloy to enhance the screw's wear resistance. This is an industry-first process, with a maximum pressure capacity of up to 450 MPa, realizing the independent controllability of core components for ultra-large injection molding machines in China. Due to the absolute technical advantage, from 2021 to 2024, Huaye's main product market share gradually increased from 10% to 13.2%, ranking first in the domestic industry for four consecutive years, establishing its leading position in the niche sector.

To continuously and stably gain market recognition, Xia Zengfu believes that first and foremost is solid quality control, which serves as the "ballast stone." Secondly, it is the capability to provide customized solutions. Huaye has an ecosystem that tightly integrates proprietary technology, in-depth services, and scale advantages, addressing clients' core pain points through tailored products and services. Finally, there is the brand and scale effect formed over the years. Being in the top position for four consecutive years means that Huaye has the richest database, the most stable quality control system, and the strongest delivery capability, enabling it to co-evolve with leading clients and create a powerful positive cycle.

-Embrace Innovation-

In 2016, Xia Zengfu made an important decision: to collaborate with the globally renowned management consulting firm McKinsey to introduce an internationally advanced management system.

"It was quite a difficult decision to invest all the company's accumulated resources into building a new factory and establishing a modernized system," explained Xia Zengfu. At that time, although the company was profitable, investing all the savings accumulated over the years meant that failure could bring them back to square one. Additionally, the new operational model required the team to completely change old habits, and many veteran employees were initially resistant, with some even worried that such measures might ruin the company. On one hand, there were voices advocating for the stability of maintaining the status quo, and on the other, there was a pressing sense that not upgrading would lead to being eliminated. After careful consideration, Xia Zengfu ultimately concluded that "Huaye must continuously improve itself in order to advance courageously in the market and build an evergreen enterprise."

The decision has proven to be correct - the new factory and modernized system have allowed the company to take on large orders from international clients such as Engel and Husky, elevating its production capacity and competitiveness to a new level. Zhejiang Huaye has further upgraded its strategic positioning to become a "manufacturer of customized core components for plastic forming equipment with global supply capabilities." The products not only supply the domestic market but are also exported to Canada, the United States, Germany, India, Japan, and other places. In March of this year, Zhejiang Huaye successfully went public. Leveraging the power of the capital market, the company is continuously increasing its investment in research and development, accelerating its global market layout, and striving to achieve a transition from a "domestic leader" to a "global leading brand."

Xia Zengfu stated that the company consistently regards technological innovation as an important means to enhance its core competitiveness, with all core technologies stemming from independent research and development. In the first half of 2025, the company's research and development will primarily focus on new products and new processes related to barrels, screws, and tie bars, with a total of 14 new projects currently underway. The company's screw and barrel products exceed industry standards and Zhejiang manufacturing group standards in core technical parameters such as nitrided surface hardness and quenching hardness. Additionally, by actively participating in the drafting and formulation of relevant industry and group standards, the company stays abreast of the technological development directions in the plastic machinery accessories industry, conducts relevant technology and product research and development, continuously enhances its industry standing, and steadily consolidates its technological advantages.

- Looking Ahead to the Future -

Faced with increasingly fierce market competition and constantly changing demands, Zhejiang Huaye has consistently maintained a forward-looking vision. New materials have become an important focus for Huaye's efforts.

Recently, Zhejiang Huaye has attracted industry attention for entering the PEEK material processing field. PEEK, also known as polyether ether ketone, is a semi-crystalline polymer characterized by lightweight, high strength, high-temperature resistance, and wear resistance. The company’s next step will focus on screw barrel products in the fields of PEEK materials and film fluoroplastics to enhance product added value. At the same time, for the existing plastic machine market, the company will increase efforts to develop the end market and expand product coverage in the end market.

In 2022, Zhejiang Huaye was recognized as a "Green Factory" by the Ministry of Industry and Information Technology. The company was also rated as a "Waste-Free Factory" by the Zhejiang Provincial Department of Ecology and Environment and the Zhejiang Provincial Department of Economy and Information Technology.

Xia Zengfu is full of confidence about the future. He sees a broad prospect for the plastic machinery industry: the market size of the screw and barrel in China is showing an overall growth trend, reaching 10.8 billion yuan in 2023 and expected to exceed 20 billion yuan by 2030.

China has already become a major producer, consumer, and exporter of plastic machinery in the world, holding a significant position in the global plastic machinery market. Xia Zengfu proudly stated that during participation in overseas exhibitions and visits, the tremendous advantages of Chinese plastic machinery in terms of performance are already evident. This is the power of Chinese manufacturing.

From a small island factory to an industry leader, from traditional manufacturing to intelligent manufacturing, Xia Zengfu has led Zhejiang Huaye through an era-spanning corporate evolution. Now, standing at a new starting point in the capital market, this "screw veteran" still maintains the focus and persistence he had at the beginning of his entrepreneurial journey. He says, "In my lifetime, I have dedicated myself to doing one thing well—making screws." He is also fulfilling his initial belief: to transform Zhoushan Jintang from a "screw town" known for repair and imitation into a highland of intelligent manufacturing, achieving a breakthrough in the localization of core components.

In Xia Zengfu's view, the manufacturing industry requires a combination of perseverance and innovation, as well as the integration of tradition and modernity. In the future, the biggest transformation in the plastic machinery industry will focus on high-end, intelligent, and green development directions. Future factories will undoubtedly be digital factories. With the continuous improvement and promotion of industrial internet and AI technology, modern factories will significantly enhance efficiency and quality stability.

Focus on industry, strengthen Huaye. Zhejiang Huaye will continue to embrace the wave of change with an open attitude, creating the future by adhering to industry, promoting Chinese screws to the world, and letting the brilliance of "Made in China" shine in broader realms.