Zhejiang Huaye: Promoting China's Screw Rods to the World

Q: Do you remember when you received your first order?

A: The first order started in Shanghai. At that time, there was an East Asia Plastic Machinery Factory in Shanghai, which was a state-owned enterprise operating under a planned economy model. After we started collaborating, we gradually discovered that there were differences between our technology and their requirements. At that point, I vowed to make the best screws in China. We then brought over many technical personnel from East Asia and worked with them until they retired a few years ago. From then on, we began to engage with foreign and Hong Kong-funded enterprises, so our starting point was somewhat higher than that of our peers.

Q: What are the main application areas for our company's products such as screws and barrels?

A: The application range is very broad, including medical, 3C electronics, home appliances, as well as now in metal powders, chemical fibers (raw materials for clothing), and the food industry, all of which will use our screws.

Q: Why was the name "Huaye" chosen at that time? What vision and expectations does it have?

A: "Hua" represents China, and "ye" represents industry. At that time, we had an ambition to engage in industry, hoping to represent Chinese brands and quality in a certain field. Our thoughts back then were quite simple.

Q: How many evolutionary stages has our entire enterprise's strategic positioning undergone?

At the beginning of our venture, the technical requirements were similar to those of our peers. Gradually, we realized that to delve deeper, we must continuously make breakthroughs in technology, quality, and other aspects. While domestic peers were still working on some basic tasks, we had more interactions with foreign counterparts and learned a lot from them. Up until now, we have achieved original research and development breakthroughs in some areas. For example, our bimetal casting technology has far surpassed the old techniques that have been used abroad for decades.

Q: Does this constitute the core technological barrier of the enterprise?

A: Casting technology is one of the key areas. We also have many leading technologies in material formulations and new material applications, having launched numerous new material applications in the domestic market, making us one of the pioneers in the industry.

Q: What are the main cutting-edge technologies and product directions that the company's R&D investment focuses on?

A: There are many, including the upgrading of manufacturing equipment, the application of new materials, and the investment in new materials in industries such as lightweight, electronics, and medical, which will gradually become apparent in the future.

Q: In a fiercely competitive market, how can one build their own technological barriers?

A: First, the continuous iteration of technology relies on the ongoing improvement of our independent R&D system; second, our early start in internationalization allows us to sense future industry directions more quickly through the demands of international clients. We have project collaborations with clients in Europe, Japan, and other places, where we discuss the application scenarios of screws and machinery in emerging industries, which is very helpful for our R&D direction.

What is the percentage of R&D personnel?

A: This accounts for approximately 7% of the total number of employees. In addition, we have extensive collaborations with domestic and international universities and research institutes.

Q: The growth of overseas business is significant. What are the future plans for the international market?

A: Currently, we have established a presence in Japan, India, Europe, the United States, and other regions, and the growth rate is expected to further increase starting next year.

Q: What new concepts and standards have been brought about through cooperation with international manufacturers such as Engel and Husky?

A: Engel has a large presence in the European injection molding machine market, with high quality standards and an early layout in emerging fields, which has driven our progress in technological improvements, breakthroughs, and accumulation. Husky focuses on the packaging sector, such as Coca-Cola bottles and mineral water bottles. Our collaboration has deepened our understanding of food-grade requirements, which helps us expand into the food industry market.

Does the company have plans to cultivate new growth engines?

A: We are focused on many new tracks, such as lightweight materials and magnesium alloys. In fact, we started paying attention to magnesium alloys about five or six years ago and officially launched our efforts in the second half of last year, with good results so far. In the future, we will continue to focus on new technologies that have market competitiveness and align with trends.

Q: After the first phase of the new production base reaches full capacity, production capacity is expected to increase by 50%. How can the additional capacity be absorbed in the current market environment?

Our goal is not just 50%. We are focusing on several directions: first, the export market will continue to grow; second, the proportion of end users currently using our products is not high, so there is still significant room for growth. We are developing partners in places like Guangdong to directly reach end users and convert some competitors into collaborators. Additionally, we plan to set up small warehouse-style service points in regions like Guangdong, enhancing response speed like a "supermarket" and sharing resources with partners. We believe there is still a large market space.

Q: How can Huaye, as a traditional manufacturing enterprise, transform in the wave of digitalization?

Digital transformation is a path that enterprises must take. In the construction of our new production base, we are promoting the comprehensive integration of information, logistics, and other data to establish a database, in order to improve decision-making efficiency and operational effectiveness.

Q: As a founder of the company, how do you think about the issue of corporate succession? What are your expectations for the next generation of Huaye employees?

A: Inheritance doesn't necessarily have to be familial. Like-minded people coming together to continue developing the company is more important to me. The inheritance of ideas and aspirations can take the company further.