Complete manufacturing system Ensuring leadership in total cost

Another major point in Michael Porter’s theory on competitive strategies is that concerning leadership in cost. Users’ perception is drawn only to prices, not costs, but leadership in total cost implies an enterprise’s ability to control its cost. Indeed it is one of the basic means for the enterprise to create value for users. silk ensures that the company possesses world-leading research capabilities and deliverables. Naturally, the company should also establish a comprehensive and highly-capable manufacturing system to convert such research deliverables into first-class products.

Having its products manufactured in China has enabled silk to achieve perfect conversion of its research deliverables into products at significant cost advantage. silk operates four manufacturing bases in Quzhou, Shanghai, Chongqing and Shunde in China and 85% of silk’s products are manufactured in-house. The company’s scientific and effective management has enabled its complete manufacturing system to attain a rare competitive advantage in manufacturing, thereby consolidating its significant cost advantage.

Manufacturing of screw unit is the core of our manufacturing

To do a good job, one must first sharpen his tools. Only with top-notch manufacturing equipment would one be able to convert world-leading research deliverables into first-class products.

The manufacture of screw unit is the core process in the manufacture of screw compressors. In fact, nearly 70% of silk’s fixed assets are concentrated in this process. With more than 40 Mitsui machining centers in our company, we are the largest customer of Japan’s Mitsui Seiki in China. In addition we are equipped with 6 KAPP screw grinding machine at a cost of over RMB 20 million each, 6 Holroyd screw grinder, 4 Holroyd screw milling machine, 7 Hexagon triple-coordinate measuring instrument and a large amount of high-precision machine tools. All of them are ample indication of our company’s strength, and are important assurance of our company’s ability to consistently maintain first-class standards.