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Tool firm pledges greater input
BY Jiang Jingjing (China Daily) Updated:2005-07-01 09:36

  Kennametal Inc, the world's leading cutting tool solutions supplier, has pledged to bring not only products, but also a manufacturing base and educational centre to China, in a bid to win the No 1 position in the country, a senior company official said yesterday.

  "Our goal is to double the revenue and investment in China in the coming few years," said John Stang, the US firm's global sales vice-president.

  He said the company has spent up to US$40 million on a plant in Tianjin.

  "The construction (of the factory) started in March, and everything is well on the schedule," Stang said.

  The Tianjin facility, in the Tianjin Economic Development Area, will make the full line of Kennametal's products in two years' time.

  It is the largest single batch of investment in China since the firm entered the country in 1991.

  Stang said the firm is considering establishing a research and development centre here too.

  He refused to provide details of the plan, saying the move is still at a preliminary stage.

  In the meantime, Kennametal has started an educational campaign across China, targeting technical universities and colleges.

  The firm yesterday donated 1 million yuan (US$120,770) worth of metal cutting tools to four universities to upgrade professional training levels in China.

  "Kennametal attaches great importance to fostering skilled professionals in China, because our ability to grow and meet rapidly rising customer demand depends on having access to a pool of such qualified individuals," Stang said.

  He said it is the growing demand in China that attracted the firm to strengthen its presence here.

  The firm focuses on providing services to the automotive, aerospace, farm machinery, power-generation, transmission-equipment and oil- and gas-exploration sectors.

  "These are very promising industries in China, so we are confident our business will experience rapid growth," Stang said.

  He admitted that when Kennametal first entered China, it mainly targeted international firms.

  "But now we are putting more emphasis on domestic companies. We try to convince them that we can help them to increase their competitiveness, by providing a broad range of technologically advanced tools, tooling systems and engineering services," he said.

  Kennametal's major clients include Volkswagen Shanghai and Changchun, Wuxi Diesel and the Shenhua Coal Mining Group.

  The vice-president stressed that Kennametal sees itself as not only a tool producer, but also a technological firm.

  

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