Nanjing Land Waterjet Survival Rule: Starting from the low-end market

In 1995, at an international industrial exhibition, an exhibit made Chen Bo unable to believe his eyes: water flows from the pump body of a piece of equipment, passes through the pipe, and then flows out from the cutting head. The pump body pressurizes the water and continuously outputs the water flow, so that the cutting head turns the high pressure water into a supersonic water jet, and the cutting process of any curve can be realized.

This is the proud work of FLOW, the world leader in the development, production and sales of ultra-high pressure waterjets: the “soft” water becomes a “just” knife, which can be cut by one machine.

"A very small machine, selling more than 5 million yuan." After understanding the principle of the equipment, Chen Bo "I think this technology should have a promising future." More importantly, at that time, the world made ultra-high pressure waterjets. There are only a handful of companies, and the Chinese market is still blank.

The first 3 years of pain
In 1996, Nanjing Dadi Waterjet Co., Ltd. (hereinafter referred to as Dadi Waterjet) was formally established with the help of state-owned funds.

Chen Bo, who is good at mechanical automation, "has not understood much" in terms of ultra-high pressure. He found Professor Han Yuli, who is engaged in ultra-high pressure research at Nanjing University of Science and Technology, to work together to study waterjet technology.

However, less than a year later, the cooperation between the two parties was terminated for some reason.

"The most original patents are jointly studied by everyone, and both parties can use them, but this technology patent is now outdated." Chen Bo stressed, "We have continuously updated ourselves and have developed to the 10th and 11th generations." This technology belongs to the Land Waterjet.

At the beginning of the 21st century, the Nanjing Municipal Government advocated the reform of the shareholding system and encouraged the development of new models of small and technological small enterprises to allow individuals to take stock. The Land Waterjet also “added external capital step by step” and turned into a joint-stock enterprise.

Chen Bo introduced that the existing shareholders of Dadi Waterjet have grown to 40, and all are natural persons. Chen is the chairman of the board and holds a majority shareholding but does not hold shares.

"If there is no such policy, the people of the "land water knife" will run away." Chen Bo said that there are currently about 30 companies in the domestic ultra-high pressure waterjet industry, and some are companies established by employees from the land waterjet.

"Nobody knows the waterjet, just like an alien, everyone is watching, but no one buys it." When the land waterjet is introduced to the market, the Chinese economy is undergoing reforms, Chinese companies, Especially for large enterprises, China's manufacturing industry has entered a low tide during restructuring, production suspension, and even layoffs. "Some business workers have no wages, and they have no money to buy new products."

In 1996, the "China's first water knife" for the design and production of the Land Waterjet was introduced. The Land Waterjet only sold one piece of equipment at a price of more than 400,000 yuan, and had to rely on two machines to process the customer. , earn a processing fee to maintain development. Chen Bo admitted that until 1999, the land water knife turned a profit.

Chen Bo recalled the situation of the year and still felt very painful. "We have a lot of pain, but we have to step out," he said.

"贵人" Smick
The first "elegant" of the Land Waterjet is Shanghai Smick Ceramics, a tile-making company.

At that time, Chen Bo, who had a certain confidence in the technology of the waterjet of the earth, took the initiative to find Smick. The self-recommended, the other's tiles were put into various figures and matched with various colors and placed on the ground. Seeing this, Smick’s boss “has brightened his eyes”. Chen Bo explained that at that time, Smick tiles could sell for 400 yuan per square meter, but with the addition of puzzles, the price could rise to 20 times.

What makes the Smick boss even more heart-felt is: Chen Bo promised to help Smick turn waste into treasure.

In the production line, the defective tiles are not easy to sell due to bumps, etc., in order to maintain the brand image, Smick is not willing to cut the price, so he has to put it in the factory and crush and fill the land.

Chen Bo seized this opportunity.

The earth water knife can circumvent the broken part of the ceramic and use the intact part to make the pattern, because the water knife is used to make the pattern of the tile. This subtly processing makes the waste that was originally to be filled, turning waste into treasure.

Initially, Smick accepted the opinion of the waterjet, and spent about 400,000 yuan to buy the first waterjet. Later, Chen Bo was told by Smick that they "recovered the full investment of the waterjet in three months." Later, Smick ordered another six waterjets from Chen Bo. In this way, the "land water knife" was pushed open in Shanghai, and the ceramic industry also recognized the charm of the water knife.

Since then, Chen Bo has come to Foshan, Guangdong, which is known as the “Southern Pottery Capital”.

In 10 minutes, Chen Bo used products to persuade Hong Kong-listed companies to produce vice presidents of Eagle Ceramics, but only sold one waterjet.

However, in Chen Bo's opinion, this means that the Land Waterjet opened its market in Foshan, Guangdong. In the following two years in 1998 and 1999, Foshan digested more than 200 waterjets.

After the opening of the low-end market, in 2000, the land waterjet was really on the road to profit, with sales of about 10 million yuan that year.

How is the knife not old?

At the beginning of the 21st century, the land waterjet began to enter the international market. But the dominance of the international market has been occupied by the US FLOW. FLOW is the pioneer of the world's ultra-high pressure waterjet technology. According to its official website, FLOW has been established in more than 40 countries around the world, with a share of 60% in the international market.

In China, Professor Han Yuli of Southeast University first studied the ultra-high pressure waterjet technology and was honored as the “father of Chinese waterjet”. He founded Nanjing Suqi Technology Co., Ltd., mainly engaged in the research and development of ultra-high pressure waterjet technology.

Zhang Changjiang, the company's director and deputy general manager, said in an interview with this newspaper that from the perspective of conventional mechanical equipment, the entry threshold of the ultra-high pressure waterjet industry is indeed not high, but it is precisely because of this, there are currently more than 20 domestic industries. Enterprise; but the real core of ultra-high pressure waterjet refers to the design theory of ultra-high pressure vessels. From the product point of view, it is how much time the machine can be used under pressure, rather than simple mechanical equipment.

Therefore, Zhang Changjiang said, “Many domestic counterparts are playing with concepts.”

From a technical point of view, Zhang Changjiang admits that the gap between domestic technology and the United States as a whole is still very obvious. Therefore, with the brand factor, a common water knife, in the case of similar performance, the United States is 300,000-400,000 yuan higher than the price of China; but in high-precision products, China and the United States can not compare prices Because China's technical level is still not up to standard.

In the situation of the latecomers "group knife flurry", the predecessors continue to lead the situation, "China's first water knife" can not be old?

The former state-owned system has had some influence on the development of the waterjet, but Chen Bo believes that more than ten years since the establishment of the Land Waterjet, more time and energy has been spent on technological innovation and market integration.

"We not only need technology leadership, but also product leadership, so we must continue to innovate." Chen Bo revealed the survival rules of the land waterjet: both low-end products, but also research and development and launch of high-end products; in different grades, from From ceramics to glass to metals, we are constantly developing new fields and opening new products. It is understood that the current products of the Land Waterjet range from several hundred thousand to two or three million yuan.

Constantly transforming technology into products according to market demand, constantly innovating products and updating technologies according to customer feedback, “only creating value for customers can take money from customers' pockets”.

As a scientific researcher, Chen Bo personally cut the tiles, paved the marble and made renovations. Around 1998, "the words of ICBC in Jiangsu Province are all made by us." Chen Bo said.

In 2000, the land waterjet technology has completed the fifth round of improvement, "the technology has been very stable", and began to enter the glass market, first to do stainless steel cutting, and then step out.

Dadi Waterjet's current business is mainly in the field of ultra-high pressure water cutting, cleaning, etc., and is interested in the development of ultra-high pressure medical waterjet and old tire recycling.

In recent years, the production capacity of the Land Waterjet has also increased, from 207 in 2005 to 451 in 2007. Chen Bo said that the land waterjet currently accounts for about 50% of the domestic market. It is estimated that the sales of the land waterjet will exceed 150 million yuan in 2008, and the net profit will be more than 20 million yuan.

Chen Bo also said that the Land Waterjet is currently actively financing, and hopes to raise funds of 50 million to 80 million yuan for new research and development, including technology and products.

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