Kenner: Growing together with China's metal cutting industry

Compared with competitors in the same industry, the US Kenner company is not only one step ahead of the strategic vision of the Chinese market.

Kenner is one of the world's leading metals processing industry leaders with operations in more than 60 countries and territories, more than 14,000 employees worldwide and annual sales of more than $2 billion.
Kennametal's Global Metal Cutting Tool Division offers its customers a wide range of technology-leading tools, processing systems and operational guidance services designed to enhance their manufacturing competitiveness. In the field of metal cutting tools, Kennametal is the market leader in North America, was named "Best Employer" in the city of Lat North, and won the "Supplier of the Year" award from the US General Motors Corporation five times.

On June 30, 2005, Kenner donated high-quality modern metal cutting tools with a total value of more than 1 million yuan to four universities in China through the China Machinery Industry Metal Cutting Tool Technology Association.

Gong Gang, general manager of Kenner Feishuo (Shanghai) Co., Ltd. said in an interview with reporters: "Kenna hopes to grow together with China's metal cutting industry. Kenner is cultivating talents for himself and also wants to be China. The talent market cultivates high-quality skilled personnel."

It is conceivable that while fulfilling a corporate social responsibility and promoting the development of China's metal cutting industry, Kenner will also have another benefit: Kenner's initiative has subtly embedded its product technology and brand image into its future customer base. This is of inestimable significance for Kenner's long-term development in China.

Chinese market
Kenner’s strategy in China is clearly based on the long-term. Kenner has been in the Chinese market for more than 10 years. Today, more multinational companies are coming, and in the Chinese market for more than ten years, Kenner has been able to perform well in the face of increasing competition.

In early 1991, Kenner entered the Chinese market with its mining and construction products;

In September 1994, Kenner established a fully-owned Kenner China subsidiary in Beijing, which has evolved into Kenan Matt (Xuzhou) Co., Ltd.;

In July 1995, Kenner established Kenner Feishuo Company through the acquisition of Feishuo International, and in June 1998 established Kenaf Feishuo Metal (Shanghai) Co., Ltd. with strong technical strength and market orientation;

In February 1996, Kenner invested US$29 million to set up a processing company in the Jinqiao Export Processing Zone in Pudong, Shanghai – US Kennametal (Shanghai) Co., Ltd.;

In October 2001, Kenner decided to transfer the manufacturing business of Kemmer, a world-renowned brand of circuit board bits, to other factories in Kenner and the Shanghai factory in the United States.

On March 15, 2005, Kennametal (China) Co., Ltd., a new production base in Tianjin TEDA Development Zone, broke ground. The production scale of the production base plant is 15,000 square meters. The plant's total investment will be between 30 million and 40 million US dollars. In addition to the manufacturing department, the company will also set up a global advanced design and engineering department to provide the company's most advanced technology and products to customers in China and Asia Pacific.
Upon completion, Kenner (China) Co., Ltd. will become one of Kenner's largest and most important production bases in the world.

Clearly, Kennametal is accelerating its growth in China to effectively meet the business needs of fast-growing domestic customers and the many global customers expanding their business in China.

Currently, Kenname is the market leader in North America for metal cutting tools, and second in Europe and China. Mr. Gong Gang told reporters that Kenner's goal in China's metal cutting industry is to become the customer's first choice.

Become part of the customer
By 2005, Kennametal had invested more than $66 million in China, with more than 400 employees in China and sales of more than $50 million for automotive manufacturing, aerospace, heavy industry, electronics, mining and construction. Provide products and services in other fields. In April 2005, Kennametal won the honor of “the most popular tool brand” in the most competitive tool brand selection event in China.

Kenner's position in the Chinese market is booming.

Mr. Gong Gang said that Kenner can be recognized in the customer base. In addition to the competitive strength of the product, another reason is Kenner's advanced marketing concept.

“The tool supplier is not the most accurate positioning for Kenner. Kenner’s marketing philosophy is to be a part of the customer. This is not simply a matter of being: Kenner not only undertakes the customer’s product service, but also participates in the customer’s product. In the whole process of development and production, we optimize product design, improve production methods, improve production efficiency, reduce production costs, shorten manufacturing cycle, and enhance customer's competitiveness in the market. For example, in terms of fee settlement, It is only possible to settle the goods according to the delivered goods, but to undertake the tool package business, that is, after the negotiation between the two parties, the tool and its service fees are settled according to the quantity of products produced by the customer."

Such participation must penetrate every step of the customer's choice, use of the tool, and even penetrate into the product development stage. This is obviously a huge business process that may bring predictable value to users, but it will also bring huge challenges to suppliers, but Kenner is willing and able to face such challenges. Mr. Gong Gang said, "Kenna is so dedicated to the customer. In the short term, Kenner has paid a lot, but in the long run, the faster and better the customer, the more capable and the need to use more Kenner. Products, Kenner's development will be faster and better."

Being part of the customer is also reflected in Kenner's continuous introduction of new products every year. As an established company with many years of history, it is necessary to continuously innovate in order to maintain its leading position in the industry. Mr. Gong Gang introduced that Kenner pursues continuous innovation and self-transcendence.
In fiscal year 2004, Kenner's total of innovative and improved products exceeded 10,000. These new and improved products combine Kenner's R&D team and the company's employees to enhance Kenner's product level and help customers improve their competitiveness. There is a rule within Kenner that must account for more than 40% of Kenner's annual sales from new products developed in the last five years.

Constantly surpassing myself seems to be the true nature of Kenner.

Strong sense of social responsibility
Kenner pays special attention to talent training. Kenner China employees will receive good training from the company, and some key technical and management personnel will have the opportunity to receive training for 3-6 months at home and abroad (North America and Europe).

In addition, Kenner also has Kenner University in the United States. The university has a variety of professional courses from beginner to advanced, has advanced teaching facilities, and employs the most authoritative experts in the industry to serve as lecturers. All courses are designed to Out of the most professional metal cutting engineering and technical personnel. Kenner also has plans to launch similar services in China, to train top-quality professionals for the Chinese metal processing industry and Kenner China.

Mr. Gong Gang also said that Kenner’s corporate culture also actively encourages exchanges, including exchanges of talents, technology and experience, to cultivate more and better elites for Kenner and their countries or regions.

Kenner is such a company that has always assumed a sense of social responsibility while operating a business. Mr. Gong Gang told reporters that Kenner's production in China will use advanced technological processes to produce high-quality products. Kenner's global customers will look forward to using these products, and these products will consider environmental, health and safety measures. These measures will meet or exceed local standards.

Mr. Gong Gang said that in the process of product development and production, a group of professional and technical personnel with solid cutting theory knowledge and tool development capabilities are needed. At present, China lacks senior technical workers. The Chinese education management department has included the training of these talents in the next five years of the China Education Action Revitalization Plan, and plans to train 300,000 to 500,000 high-quality manufacturing professionals in five years. Chinese Vice Premier Huang Ju once said: "The education sector adapts to the development trend of the manufacturing industry and the market demand. The use of higher education resources and the systematic training of high-level talents in processing technology are of great practical significance for promoting the development of the manufacturing industry and social employment. Kenner believes that such high-quality manufacturing talents are undoubtedly very important for China to improve its manufacturing level. It will also create more and better opportunities for Kenner's development in China. Therefore, Kenner is very willing to support this. An educational revitalization action plan, this time donating a tool worth one million yuan is just the beginning. Kenner has achieved great success in the Chinese market and has the responsibility to promote the further development of China's manufacturing industry, which is also an integral part of Kenner's social responsibility.

Kenner and his staff have been working hard to contribute to society and strive to be good citizens of society.