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22 Sep 2024
Developing service-oriented manufacturing and promoting the deep integration of modern services with advanced manufacturing are essential components of achieving new industrialization. This direction serves as a critical path for the transformation and upgrading of traditional manufacturing industries.
To date, China's ceramic machinery manufacturing industry has entered a new stage, characterized by slowing market growth and the transition from old to new driving forces. Advancing the industry's transformation towards servitization is both a requisite for achieving high-quality development and a crucial focus.
KEDA Industrial Group, a leader in China's ceramic machinery industry, is also a pioneer in integrating manufacturing with services. As the "Global Provider of Building Ceramic Production Services" strategy unfolds, KEDA Industrial Group extends its service chain vertically, broadens its service scope horizontally, innovates industry models, and reshapes growth drivers. This not only enhances the company's development efficiency and quality but also establishes a benchmark for the global ceramic machinery and machinery industry's transformation towards servitization. It plays a vital role in elevating China's ceramic machinery industry within the global industrial value chain.
On July 5, 2023, a strategic partnership signing ceremony between KEDA Industrial Group and Shandong Sinocera Functional Materials was held in Dongying, Shandong. Simultaneously, KEDA Industrial Group announced its acquisition of a 40% equity stake in SinoCera Create-Tide, a subsidiary of Shandong Sinocera Functional Materials.
This partnership with a leader in the ceramic chemical materials sector brings KEDA Industrial Group crucial technological support in high-end ceramic inks and pigment & glaze. It also extends KEDA's business into ceramic chemical materials, further enhancing synergies across the industrial chain.
KEDA Industrial Group and SinoCera Create-Tide have also formed a joint venture, Guangdong Quanitech Material Ltd.. By leveraging KEDA Industrial Group's international customer resources and marketing network, the venture aims to boost global sales of ceramic inks and pigment & glaze. This move expands KEDA Industrial Group's business beyond ceramic machinery and provides more competitive solutions for the global building ceramics industry.
"We aim to leverage our collaboration with SinoCera Create-Tide to promote our design, craftsmanship, and even cultural elements worldwide. We want the world to embrace the Chinese model and benefit from our low-cost, high-efficiency, and high-quality production approach," stated Mr. Xuexian YANG, General Manager of KEDA Industrial Group.
On September 25, 2023, KEDA Industrial Group signed a formal agreement with Italian ceramic mould manufacturer F.D.S. Ettmar S.r.l., acquiring 70% of its shares. Through this strategic partnership with F.D.S. Ettmar, KEDA Industrial Group not only strengthened its technological capabilities in high-end mould products but also created strong synergies with its ceramic machinery business.
In KEDA's global strategy, the business cooperation between ICF & Welko and F.D.S. Ettmar plays a key role in expanding into Italy and the broader European market, a hub of the modern ceramic industry. This move is vital for entering the high-end ceramic machinery market and enhancing KEDA Industrial Group's global brand image.
With a series of strategic acquisitions, KEDA Industrial Group has expanded its business both geographically and in terms of service scope. This has significantly strengthened its ability to provide one-stop services for building ceramic production. The transformation from a ceramic machinery provider to a "Global Innovative & Green Solutions Provider for Building Materials & Industry Services" has made substantial progress.
In the first half of 2024, the international order rate for KEDA's ceramic machinery business exceeded 60%. The rapid expansion of KEDA Industrial Group's international business reflects the widespread adoption of the Chinese model—small investment, large output, low cost, and high returns—across the globe. In this process, the development of servitization capabilities has been a crucial pillar supporting KEDA's globalization strategy.
"KEDA's machinery business has been expanding internationally for quite some time. Beyond machinery sales, we also provide ongoing services, which is why we have many service personnel stationed worldwide. With such a strong team, KEDA Industrial Group has achieved remarkable success across the globe," said Mr. Yuejin LI, Director of KEDA Industrial Group.
In recent years, KEDA Industrial Group has accelerated the development of its global service network. As of now, KEDA has established 98 service outlets and parts warehouses worldwide. Subsidiaries have been set up in India, Turkey, Italy, and Indonesia, further reducing service distances, improving response times, and strengthening the global service system.
Teams specializing in parts & consumables are stationed year-round in countries and regions such as Indonesia, Bangladesh, Turkey, Mexico, the Middle East, and Africa. Dedicated personnel are assigned to regional offices or major customer sites to ensure comprehensive follow-up, guaranteeing the continuity and stability of ceramic production.
The localization of services is a key aspect of KEDA's globalization strategy. Through localized operations, KEDA Industrial Group has effectively reduced operating costs, increased efficiency, and enhanced its flexibility in responding to market changes.
To date, KEDA Indian has achieved 100% localized operations, providing fully localized services to its customers. The localization of KEDA Turkey has also deepened, establishing a 24/7 rapid response system with no time zone or language barriers. This has strengthened KEDA's connections with its customers and provided robust support for business growth.
Providing services that are "Hassle-Free, Worry-Free, and Cost-Effective" has been the key to the successful implementation of KEDA's globalization strategy, as summarized by Chairman Mr. Cheng BIAN of KEDA Industrial Group. With a global service network, innovative service models, and localized operations, KEDA Industrial Group continues to optimize its service offerings. The company provides high-efficiency, low-cost solutions to customers worldwide, achieving mutual growth with local industries and setting a benchmark for the integration of servitization and globalization development.
KEDA Industrial Group remains committed to proactive and innovative service, staying ahead of market trends to meet the diverse and personalized needs of the global market.
In the field of spare parts & consumables, KEDA Industrial Group provides customers with comprehensive solutions, including nano consumables and machinery maintenance. Additionally, the company has pioneered a consignment model in several countries, effectively reducing inventory risks and increasing sales opportunities.
Since 2021, KEDA has implemented an international subcontracting system for grinding consumables. This approach has ensured stable product quality while significantly lowering inventory costs and management difficulties.
Based on market development and customer demand, KEDA Industrial Group has introduced a diversified post-kiln contracting service system, o ffering "Small Contracts", "Medium Contracts", and "Large Contracts" solutions. This innovation in business models has created new growth opportunities for KEDA Industrial Group.
In 2023, despite a global downturn in the ceramic industry, KEDA's international contracting business experienced growth against the trend, with its international contract value increasing by approximately 60% for the year.
Providing personalized technical solutions and helping customers overcome production challenges has been a key pillar in KEDA Industrial Group's market success through service. In Sri Lanka, KEDA optimized the customer's glaze formulation, reducing costs and improving production efficiency.
Additionally, KEDA Industrial Group assisted Shandong Hongbang Technology in resolving engraving board formulation issues, enabling the successful upgrade of their products. The company also helped Fujian Desheng Cecullar Ceramic Factory solve cutting cracks, leading to the signing and implementation of a new production line.
"Prioritizing proactive service is a powerful asset in strengthening the company's core competitiveness," emphasized Chairman Mr. Cheng BIAN of KEDA Industrial Group. In terms of after-sales service, KEDA Industrial Group has adopted a "Service-First" approach. Through regular inspections and training, KEDA Industrial Group deeply engages in customers' production processes, offering comprehensive services such as machinery maintenance and problem-solving. By helping customers establish robust maintenance systems, preventive care has significantly improved the stability of machinery operations.
KEDA Industrial Group adheres to a service philosophy centered on the customer, aiming to understand their needs and proactively offer value-added services that create a superior product experience and greater value for them. By continuously innovating in the integration of manufacturing and services, KEDA Industrial Group has not only strengthened its global market competitiveness and secured its leadership in the global building ceramic machinery manufacturing industry, but also driven technological innovation and efficient growth across the entire sector.
Building a new development model powered by both manufacturing and services, extending the industrial chain, breaking development boundaries, and improving quality are key to KEDA Industrial Group's sustainable, high-quality growth. KEDA Industrial Group's transformation towards servitization has set a benchmark for the integration of services and manufacturing in China's building ceramics industry. Moreover, it has provided valuable business and practical examples for achieving new industrialization and building a modern industrial system.
( The China Building Ceramics & Sanitaryware Association)
