Tool know-how for the Middle Kingdom
“Internationalization continues,” proclaimed the recently published VDMA study called “Lessons from a Crisis”. Two-thirds of the small businesses and three-quarters of the large businesses consulted in the study intend to increase the proportion of turnover they generate abroad during the period until 2015. At the same time, many of the businesses surveyed believe that the number of competitors from Brazil, Russia, India and China (BRIC) will increase dramatically. Above all, the importance of the Chinese market is continuing to grow – also for LMT. The Group has established itself in the Middle Kingdom as a respected contact and partner for all questions relating to the use of precision tools.
- The LMT-Building in Nanjing
China experts also anticipate huge growth rates in the coming year. In car production, for example, Germany Trade and Invest (GTI), the German government agency for foreign trade and investment, forecasts growth of just under 50% in the number of vehicles driven. In the aircraft construction, general engineering and wind turbine sectors, too, GTI anticipates strong increases in demand over the next few years. Let’s take a closer look at wind power, for example. According to various estimates, current total installed capacity lies between 25 and 40 gigawatts. The national Energy Research Institute, however, anticipates a total capacity of roughly 200 gigagwatts by the year 2020.
“These industries are extremely important to us,” confirms Xia Xu, Director Asia at LMT Tool Systems. “Many of our tools are used in these sectors.” – More than 120 LMT employees at nine different sales offices and other sites in China help Chinese companies continue to grow. The centre of LMT activities is the service centre in Nanjing. Its range of facilities include, for example, a PVD coating machine that enables the swift local reconditioning of rotary tools with coatings of LMT original quality. LMT gear-cutting tools are an important product group for Chinese users. Both large enterprises in the automotive sector and manufacturers in the wind power industry use LMT gear hobs in the production of gear wheels.
Future growth industries
However, the services on offer in Nanjing are much broader. Thus, for example, the employees at the centre produce special tools for the local market, recondition thread rolling heads, manufacture polycrystalline diamond (PCD) tools for drilling and cutting demanding materials and re-equip cutting insert tools. Furthermore, the employees market the entire LMT product range and support users from sales offices in Beijing, Shenyang, Xi'An, Nanjing, Shanghai, Hangzhou, Hunan/Hubei, Chongqing and Guangzhou. In the future, in addition to the important automotive sector, activities are to increasingly focus on the growth industries of tomorrow, such as the energy sector, the aerospace industry and infrastructure projects like railways and shipbuilding.
LMT provides tool management services for VW plants
Other LMT specialists work at the VW Tool Management (VWTM) subsidiary. After having been in charge of tool management at VW Transmission Shanghai since 2004, last year LMT also took responsibility for this task at a new VW factory in Dalian. This service does not only offer comprehensive tool management from one source, but also the relevant logistics and guidance on technical questions. Furthermore, the software used by the tool specialists enables them to provide large amounts of tool use data that is important for detailed production planning.