Liu: I think modern induction heating equipment is a mechatronic product whichcombines heat treatment process, induction generator, quenching machine,automatic transmission and monitoring system. As Shanghai high & new technology enterprisewe as always follows the development trend of advanced domestic and foreigntechnology , value application of new technology and development of newproduct, pay close attention to the latest industrial policy. In recent yearswe did following effort:

(1)We developed a batch of innovativepatented products with important influence like: automatic induction quenchingmachine with two generators for big slewing bearing which was successfullysupplied to famous bearing enterprise in and out of China(like SKF、TMB、WZ) and its main technical indicator reachesthe international level

(2)We value applying various advancedtechnologies in induction heating machine and formed our special in automaticoperation and intelligent control. We use robot, mechanical arm and automatictransmission mechanism to realize automatic loading and unloading, inductionquenching for lot work-pieces. We use the third generation of digitalcommunication network(3G) and special software to real-time realize remote controland fault diagnosis for equipment state and work-piece quality.

(3)Using advantage of Yangtze river deltaindustrial clustering and developing induction heating high-end customers, wehave successfully cooperated with some foreign and joint venture enterprises inthis region like SDS , ZF, SACS, BOSH,etc.

(4)We actively sought cooperation andcommunication with oversea competitors and followed advanced foreigntechnology, imported MOSFET induction generator with frequency over 400 kHz andexpanded the product supply scope.

Journalist: 5 years ago in interview youmentioned that in China foreign brands dominate high-end induction market anddomestic enterprises compete with each other in low-end and small market. Nowthis pattern is broken or not? As of of China’s national induction brandsHeatking used what strategy in intense market competition ? And what’syour core competition advantage?

Liu: In China the high-end induction heatingequipment market is still monopolized by foreign companies but this pattern hasbegun to shift, the reducing of foreign equipment’s price in China is a goodproof. Heatking and other Chinese competitors are learning and applyingadvanced induction heating technology in the world. Withthe increasingly comprehensive power of Chineseinduction manufacturers we already can compete with foreign companies in Chinahigh-end market.

Our competitive strategy is: increasinginvestment in personnel training, strengthening team building, using advancedtechnology to develop new product, improving technological element andreliability of product; using differential marketing strategy and making thetailored induction heating equipment.
After years of effort we obtained authorized 29 patents (including 27 utilitymodel patents and 2 design patents ) and there are 4 invention patents and 6 utilitymodel patents in application. We got the accreditation of 2 transformation projects of newand high-tech achievements. Research shows that the technicalcharacteristic of 5 equipment of Heatking has reached the leading level in andout of China.

We own technical teamof 24 people with bachelor or above degree who’s major covers induction heatingprocess and equipment, mechanical and electrical, hard-soft ware, R&D andmanufacturing field. This made Heatking become one of the few enterprises inChina which can supply turn-key induction heating equipment. That’s our corecompetition advantage.

I believe that after 3-5 years the high-endinduction heating equipment will be made by more Chinese enterprise.
Journalist:  Shanghai Heatking HeatTreatment Co. Ltd is known as Heatking’s subsidiary company which deal withheat treatment, Can you tell us why you decided to found it?

Liu: Shanghai Heatking Heat Treatment Co. Ltdhas the largest and most complete variety of inductionheating equipment. We founded it with the goal of building test and trainingbase for Heatking, namely verifying the induction heating process and equipmentdeveloped by ourselves, promoting the new process and new equipment, trainingstaff of our customer. We hope this is helpful for developing customer andpromoting the development of induction heat treatment of China.

Journalist: Since last year the globaleconomic crisis battered development of automobile industry and most of thecustomers in induction heating field are auto parts manufacturers. What didHeatking do to respond this crisis?

Liu: In the global crisis Heatking is hard toavoid negative impact. Due to reduced orders of our customers and the orders ofinduction heating equipment purchase orders also had a drop or delayed leadtime. In the fourth quarter of last year we lost orders worth over 10millionRMB. But we responded positively: on the one hand we intensified stafftraining, on the other hand we adjusted product structure and developed newmarket like wind power, construction machinery, optical fibre drawing machine and plastic machinery field. At present45% of our products are supplied to auto parts manufacturing enterprise and theoperating pressure are relieved.

Meanwhile, Our customer had new purchasestrategy like in production season grasp technical reformation and value moreinduction heating equipment quality. Foreign enterprises turned to buy moregood Chinese induction heating equipment with low price. In China inductionheating field appeared shuffle, the weaker ones were weeded outand the stronger got new opportunity. Due to these factors we could get out ofthe trouble quickly. Some customers chose our product after suffering fromfailure of purchasing cheap equipment with lower price from our competitors.Such change expanded our product’s customer approval.

Journalist: Your company is named”Heatking”, what’sthe meaning for that?

Liu: That means “In pursuit for excellence”. Thisis our basic philosophy of enterprise management, product manufacture andservice. Only in this way our product can be better and our enterprise can bestronger. We have been value improving staff’s straining, technology innovationstrength, making company’s faithful image. We have passed ISO9001:2000 quality managementsystem certification and credit certification, been awarded for the high-techenterprises in Shanghai. And our product and service got customer’s approval. Evenso we will still continue be” in pursuit for excellence” and customer-oriented,improve quality management system, make the high quality brand ”China Heatking”based on the science and technology and strive for in an impregnable positionin the market competition.