Cultivating opportunities in crisis to find a way out

In the past, China’s traditional manufacturing industry stood out in the international competition by virtue of its low cost advantage. However, with the disappearance of the demographic dividend, the high cost of raw materials, and the constant international trade friction, manufacturing companies are in a difficult situation. But how to find a way to break the situation?

Faced with this problem, Linyi Huafeng Sealing Technology Co., Ltd. (hereinafter referred to as “Huafeng”) dares to transform and continues to expand the new direction of the industry, and cooperates with Haitian to break through the low-end manufacturing chain and extend towards both ends of the “smiling curve”.

Dare to transform and develop with “a smile”

At the two ends of the rising “smiling curve” of traditional manufacturing industry, the upstream is technology R & D, the downstream is brand marketing and service, and the sinking middle zone is the assembly and manufacturing with the lowest added value. The original Huafeng was in this sinking zone.

The development of Huafeng has experienced three stages. In the first stage, namely, the production of solar water heater accessories, Huafeng had its first cooperation with Haitian with its high standard requirements for quality. In the second stage, namely, the production of electronic supporting products, with the transformation of the industry, Huafeng’s requirements for quality were upgraded again, and the stability and precision of the equipment were constantly highlighted. In this case, Huafeng began to introduce Zhafir electric injection molding machine one after another.

Shi Zhihua, Chairman of Huafeng

Shi Zhihua, Chairman of Huafeng, told us that Zhafir electric injection molding machine have the advantages of energy saving, high efficiency and precision. Main benefit is precision, which reduces the rate of defective products, and increases our yield rate from 95% to about 99%. Especially for thin-walled products and products with high dimensional accuracy requirements, the advantages are immediate. In terms of energy saving, Zhafir has saved 30% to 40% of electricity costs. In addition, Zhafir’s stable process shortens commissioning, and reduces the pressure of factory management, greatly improving the efficiency of Huafeng, and bringing higher benefits to Huafeng and its customers. The added value of Linyi’s overall manufacturing products is relatively low, but Huafeng does not only insist on using the best equipment, but also spares no expense in equipment investment, and makes every effort to forge ahead to the upper end of the industry. So far, Huafeng has officially entered the high-efficiency and precise manufacturing stage, becoming the “Bellwether” of the local traditional manufacturing industry.

The advantage of “Bellwether” did not make Huafeng stay in this comfort zone. With the arrival of the industrial 4.0 era, Huafeng once again thought calmly, reviewed its own shortcomings, and found a way out. In 2015, Huafeng increased investments in upgrading injection molding equipment, opened the digital intelligent transformation of the new plant, and prepared to build a supporting mold workshop, extending Huafeng from the bottom of the “smiling curve” to the design and manufacturing of molds and allowing it to deeply participate in the product manufacturing process, and complete the integration of the industrial chain. Relying on many years of design and manufacturing experience in the field of rubber and plastic seals, Huafeng has unique advantages in mold development and product production. With this core competitiveness, Huafeng has formed close cooperation with international top brands in the commodity industry at the design and manufacturing ends of the industrial chain.

Chairman Shi Zhihua and General Manager Zhang Linhong of Linyi Haitian discuss technology

It is reported that the giant firm is famous for its strict requirements on product quality. Shi said: “customers have very strict requirements on product quality. In the whole process, it is necessary to control the materials and components contact in every process. The screw and barrel of the injection molding machine has to be well surface-treated with no black spots or harmful substances left. During this period, Haitian provided Huafeng with a lot of technical support, and pre-sales and after-sales support. Through two-way cooperation with Haitian, Huafeng further narrowed the technical gap between it and international brands.”

Sports cup cover (multi-component process)

In addition, Huafeng is constantly looking for new opportunities in the industry. In the fields of LSR（Liquid Silicone Rubber）, multi-color and multi-component injection molding, Huafeng increases its investment in multi-component equipment. Its sports water cups and other products have begun to be manufactured by multi-component injection molding process. “Two-shot molding has brought visual impact to the consumer. Now more and more industries are developing in the field of multi-component injection molding. Zhafir multi-component injection molding solutions can save us a lot of time, reduce assembly costs, and fully meet our production needs.”

Sports cup cover (multi-component process)

Never quit until the goal is reached

Transformation is difficult, but initially seeking breakthroughs can lead the industry. The story of transformation and upgrading is still ongoing at Huafeng. In the future, Haitian will help more manufacturing firms to extend to both ends of the “smiling curve” with an open, cooperative and win-win attitude to realize transformation and upgrading.