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Recently, the CEO of Volvo Group China, Yooem Jabber, announced to the media the group's new China strategy. Compared with the “Sino-Chemical Strategy New Process†plan announced by the group in Beijing on November 19, 2004, the Volvo Group has Instead of just focusing on the Chinese heavy-duty vehicle market, it intends to introduce all of its six most important core businesses into the Chinese market.
This Volvo Africa Volvo
As a car brand, Volvo cars have a very high market popularity in China, but in fact it has nothing to do with Volvo Group today.
The Volvo Group is a supplier founded in Sweden in 1927 that focuses on total solutions for commercial transportation. In 1999, the Volvo Group redefined its direction of development. After selling Volvo's sedan business to Ford Motor Company, it began to focus on the development, production and sale of commercial transportation products. This means that the Volvo Group has completely withdrawn from the car industry. In the following years, the Volvo Group achieved three large-scale acquisitions on three continents. It first acquired the excavator business of Samsung Heavy Industry in Asia, and later acquired Renault Trucks in Europe and Mike Trucks in North America. These three successful acquisitions have made Volvo Group the largest heavy truck manufacturer in Europe, the third largest heavy truck manufacturer in North America, and the world's largest heavy-duty diesel engine manufacturer. Currently, Volvo Group's six business areas include trucks, buses, construction equipment, marine diesel engines, aerospace and financial services.
The strength of this multinational company can not be underestimated, according to statistics, Volvo Group is not only the world's second-largest passenger car manufacturer, but also one of the largest construction equipment manufacturers; 80% of the world's major new aircraft engines are provided by it . Last year, the Volvo Group's net sales increased by 14% to 231,191 million Swedish kronor (2004, 200,171 million Swedish kronor); the number of employees worldwide is 81,856, with production bases in 18 countries and 185 markets Engaged in business activities.
Why Target China Market
As a supplier of transportation solutions, when Volvo Group floats all over the world, it certainly will not miss the most potential Chinese market in the world. At the end of March 2004, Volvo Group President Leif Johansson strongly expressed his determination to enter China when he visited China: “From today onwards, we will appear as a 'Swedish Chinese company' in the Chinese market, in the future competition. We will be transformed into a 'Chinese-Swedish company'.†The real implication of this statement is that the Volvo Group has entered a third strategic stage of joint venture and cooperation with China – manufactured in China and supplied to the world.
It is understood that the Volvo Group originally divided its joint ventures and cooperation in China into three strategic stages when formulating a global strategic plan. The first stage is the "focus" strategy of China, which regards China as a focus and the second stage is " The "three pillar" strategy is to divide the global truck market into three major parts: Europe, North America, and Asia. The center of Asia is China (at the beginning of 2003, Volvo Truck Asia had moved to Beijing); the third stage is the production of Asia. The base moved to China. At present, the Volvo Group has completed the strategic tasks of the first two phases and is now implementing the third phase of the plan.
The Volvo Group's Chinese strategy is the most important piece in its global strategy. It means that the Volvo Group will rely on the Chinese market for large-scale global resource optimization. In terms of global procurement, Volvo 3P, which is responsible for the Group’s global purchasing business, has set up its headquarters in Shanghai in 2003 and started work; the production system also became integrated into the Chinese market with the first Huawan Truck off the assembly line in March 2004; , IT companies, logistics companies, and power companies are gradually entering China.
2006 was a big year for the Volvo Group. In March, SEK 1.5 billion was purchased from Nissan Motor Co., Ltd. with 40 million ordinary shares of Nissan Diesel, equivalent to 13% of shares, and the right to acquire the remaining 6% within 4 years. Shares; At the same time, it will also discuss with Dongfeng Motor Corporation the possibility of cooperation in the field of commercial vehicles in China; Volvo Buses officially listed in China in July; Volvo Car Finance (China) Co., Ltd. was officially approved to start Chinese operations in August; September Obtained 70% of Shandong Lingong’s shares; in October, it announced the establishment of a joint traffic accident research center in China.
Volvo Group is fully entering the Chinese market competition, and Chinese companies in related industries should be given enough attention.