Zhongnan Industry Co., Ltd. strives to be the leader in the diamond industry

After more than ten years of continuous hard work, the annual production capacity of the main product synthetic diamond has jumped from tens of millions of carats to 1.5 billion carats. The domestic market share has jumped from 5% to around 40%, ranking first in the industry.
──The development of diamond products by the weapon industry group Henan Zhongnan Industry Co., Ltd. Recently, the reporter went to Henan Zhongnan Industrial Co., Ltd. (formerly Zhongnan Factory), a subsidiary of the National Weaponry Industry Group Co.
This is a military enterprise that has been invested by the state and built over five years. In the early 1990s, due to the sharp decline in military tasks, the company had reached the edge of policy closure and bankruptcy. Under extremely difficult conditions, the leadership team of the enterprise does not rely on the sky or the land. It is hard to lead the employees to be self-reliant and hard-working, and to find a way to revitalize the enterprise by developing civilian products. After more than ten years of continuous hard work, the company has changed its appearance. In the six years since the beginning of the new century, the company has achieved rapid development. The annual production capacity of the main product synthetic diamond has jumped from tens of millions of carats to 1.5 billion carats. The annual sales revenue jumped from 412 million yuan to 508 million yuan. The total annual profit jumped from 4.05 million yuan to 47.65 million yuan. The domestic market share has jumped from 5% to around 40%, ranking first in the industry. In 2006, the company achieved self-operated export revenue of 63 million yuan, a two-fold increase over the previous year. Today, Zhongnan Company is a well-known enterprise in the national superhard materials industry and a leader in the technological progress of diamond products. The “Zhongnan” brand diamond products produced by Zhongnan Company were rated as “China Famous Brand Products” by the State Quality Supervision Agency. With the advantage of its core products, Zhongnan Company is competing with the “big giants” of the international diamond industry to add luster to the emerging national diamond industry.
From the military enterprises that are on the verge of bankruptcy to the leaders of emerging industries, what is the trick of Zhongnan Company?
Grasping market opportunities Opportunities always favor those who are prepared and pursued, as well as for companies.
In the early 1990s, Zhongnan Company, the predecessor of Zhongnan Company, faced difficulties like many military industrial enterprises, looking for a way out and conducting explorations to protect the army and transfer people. At that time, the factory tried on many projects, and for various reasons, most of them were not made. The idea of ​​making diamonds is not to imagine. At the time of the production of marble slabs in the factory, some tools and equipment such as saw blades and saws required diamonds, and diamonds were expensive. In such a simple situation, the factory decided to make diamonds. Objectively speaking, at that time, the decision to engage in diamond production was urgently needed for production, and the conditions were limited. It was also impossible to use diamond products to fight the market. At that time, the director of the factory, Cui Huaiwen, was very personal in the face of difficulties. He was unwilling to keep his stalls and rely on subsidies to live, but he had to do something. He told the cadres in the factory that we should sing "Internationale" without relying on the sky or the land, and we must rely on ourselves to solve the problems of survival and development of enterprises. He served as the director for six years and led the staff to develop four product series including diamonds, which made the company out of the predicament and made great changes. When he was transferred, Jia Pan, the newly appointed director (currently the general manager of the company), said: "Our factory is only a way to develop diamonds. We want to be the diamond king of the country." Jia Pan looked at the old factory manager who was full of black hair and his hair had turned white when he walked. He promised infinitely and profoundly: "Your dream, I am coming to the round!" When the reporter listened to the members of the leadership team of the Central South Company, he talked about the main leadership handover of the year. When you look at other scenes, you seem to see a moving picture, and the military workers' spirit of fighting for the cause of the motherland is on the paper. His understanding of diamonds was also sublimated as President Jia led the company's employees to use the actual actions to fulfill the hardships of the old factory director's promise. Extensive contacts with customers and experts, as well as ongoing business practices, have led to the discovery of broad development opportunities and market space where companies can make a difference.
Diamond, also known as artificial diamond, is the hardest substance known to humans. In 1954, the United States GE company successfully developed the world's first diamond. In 1963, China's first diamond was born in Zhengzhou. In the early 1970s, the production equipment of the six-face hydraulic press with remarkable national characteristics was basically finalized. From then on, China's industrial diamonds entered the industrialization stage. In the planned economy era, due to the slow economic and social development, the application range of industrial diamonds was extremely narrow. The diamond production enterprises that were first established by the state have not been developed. After entering the 1980s, market demand has spawned a number of private enterprises. Since then, China's diamond industry has grown freely in a completely market environment. At that time, the most scarce resource was not technology but capital, because the six-face hydraulic press was expensive, and as long as there was money to set up the factory, it could make money. Therefore, although the output has increased year by year in that stage, the technological progress has been slow. In the 1980s, the average price of diamond single carats was more than 6 yuan, which was in the stage of profiteering. Therefore, the enterprises that entered earlier dig the first barrel of gold. Since then, the market price has been falling all the way until the current average of 0.6 yuan per carat, the industry entered the average profit period. In the late 1990s, with the development of the national capital market, the number of large manufacturers entering the industry increased further, forcing the focus of enterprise competition to rapidly shift to quality and scale. The development of China's industrial diamonds entered a fast lane that relied on technological progress.
Due to the physicochemical properties of diamond, which has the highest hardness, the strongest wear resistance and the unique corrosion resistance, it is unmatched by a series of other materials, which determines the broadness of its application field and the infinite nature of its life cycle. According to the results of experts in this industry, due to the special position of carbon in the periodic table of chemical elements, theoretically, there is no single substance with hardness exceeding diamond. From the perspective of historical development, human beings have gradually emerged as substitutes for the various tools used to conquer nature. Just as humans have come from the Stone Age, many tools have now entered the historical museum. However, only one tool can only be consumed and can never be replaced. It is a superhard tool represented by diamond tools. Because diamond is invincible, it can process almost anything and it can only be processed by itself, so experts predict that the diamond era will be the ultimate era of human processing tools. At present, the application of diamond mainly utilizes its highest hardness. More than 60% of the diamond is consumed in stone cutting and geological drilling such as marble and granite, and the others are consumed in glass, ceramics, roads, construction and machining. Because the diamond never wears under cold working conditions, the precision and processing efficiency of various products processed with super-hard tools are several times higher than that of ordinary tools, so the super-hard tools bring convenience to human economic and social development. It is self-evident. However, these are far from summarizing the scope of application of diamonds, because the research and application of the unparalleled special functions of diamonds has just begun. It is found that diamonds are in optical, acoustic, microelectronics, chips, nano, aerospace, etc. The application prospects in the high-tech field are more exciting, so we have reason to believe that with the development of economy and science, there will be one day, and all aspects of our life and work will shine with the brilliance of diamonds.
Since 1993, Zhongnan Company has decided to develop diamond as a key product. It has been more than ten years since its inception. Due to the hard work of technicians, it has become the leading force in the technological innovation of the national industrial diamond industry after three or five years of catching up.
In 2000, the powder catalyst synthesis process developed by Zhongnan Company made a breakthrough, which changed the history of diamond production in the past 50 years. Mass production of high-grade diamonds by domestic six-sided top presses has broken the myth of the two-sided top products. The market share of developed countries such as the United States, Britain and Japan has shrunk rapidly, and the total production and sales of diamonds in China have reached the global market. More than 60%.
In 2005, Zhongnan Company's industrial diamond production, sales, sales revenue, profit, equipment scale, growth rate, market share and other comprehensive leadership, in one fell swoop became the leading enterprise in the country's super-hard materials industry. Zhongnan Company has mastered core technology, has original ability, and leads the direction of industrial technology advancement, representing the highest level of industrial diamond products in China.
In 2006, Zhongnan Company “made a sword for ten years”! In one fell swoop, it became the maker of industry standards, industry planning, and industry prices. The domestic market share is close to 40%, which makes the market concentration of the industry increase rapidly, leaving competitors far behind.
Giving a competitive advantage When Mr. Jia was interviewed, there was a sentence that left a deep impression on the reporter. This is "the problem of core competitiveness has been solved here." When many companies are still building core competitiveness as a goal of struggle, this sentence is really awesome.
Zhongnan Company has its own unique advantages in developing synthetic diamonds. In the interview, the company leaders spoke to reporters about the advantages of eight aspects.
─ Scale advantage. The capacity and output of Zhongnan Company are the highest in the world. Apart from the close production capacity of one enterprise in China, the production scale of other enterprises is very small, and it is difficult to compete with Zhongnan Company. Scale advantage can bring economies of scale in production, reduce procurement costs and fixed costs per unit. More importantly, the scale can guarantee the coverage and quality stability of the products and better meet the needs of customers. Zhongnan Company is the most comprehensive manufacturer of synthetic diamonds in China. At the same time, by stocking sufficient basic quantities (inventory), it can reduce the quality fluctuation of different batches of products, thus ensuring the quality stability of products and enhancing the appeal to high-end customers.
─ Technical advantage. The synthetic diamond industry is a technology, capital, and labor-intensive industry, involving machinery manufacturing, powder metallurgy, materials, computer control and many other technologies. Zhongnan Company is a key enterprise of the National Torch Program. It has a corporate technology heart in Zhengzhou High-tech Development Zone. The company has a super-hard material research and development center. It has the top diamond synthesis experts in the industry, a large number of diamond technicians, and masters diamond research. The commanding heights of the field, the annual investment in research and development expenses accounted for more than 3% of revenue, all technical processes have independent intellectual property rights, and the contribution rate of new products exceeds 60%. In terms of large particle synthetic diamonds, it is far ahead of other companies in the industry. Zhongnan Company has always placed technology development in the first place, keeping up with market demand and industry development direction, and its technical level has always been ahead of other domestic companies for more than one and a half years. For example, in Central South China in 2001, the traditional chip catalyst technology was completely eliminated, and the powder process was promoted. The production technology and quality standards were the first to be in line with the international standards, marking the entry of national diamond production into a new period, while other domestic enterprises only appeared in 2003 and 2008. Imitate it, still tracking and exploring. Zhongnan Company is the earliest enterprise in the industry to develop large-tonnage presses. According to the needs of synthetic technology, the press equipment is continuously improved to match the technical process. At present, it adopts the method of independent design, commissioning processing and internal processing, and self-installation and debugging to ensure the control and continuous improvement of technology. In the development of high-grade synthetic diamond, the conversion rate of synthetic diamond and the output rate of high-grade products are in the leading position in the industry. The company's selection technology uses an advanced laser scanning topography analyzer to optimize the existing diamond selection process, determine the diamond finished product standard, establish a diamond single crystal quality supervision and assurance system that is in line with international standards, and overcome the low grade grade. The phenomenon of mixing high grade diamonds improves the grade rate and use value. Since the company's product quality standards are higher than the national standards, the physical quality of Zhongnan Company is used as the quality reference standard in the industry. Currently, technology - cost advantage. With the promotion and application of powder catalyst technology and the continuous expansion of production scale, coupled with efficient and effective all-round management, the production cost of Zhongnan Company's diamonds has dropped at an average rate of 6 to 8%, fully adapting to customer requirements. The need for the company's current production costs is the lowest in the world, so it has a strong market competitiveness.
─ Mechanism advantage. In the years of market competition, Zhongnan Company has formed the values ​​of “customer first”, “value-added service”, “integrity management” and “creating value for customers”, and established a “customer demand-oriented” operation mechanism for the market. Changes can be delivered to the company in a timely manner and respond quickly, and the activities of the company have been organically combined with market changes and customer needs. The company advocates the concept and culture of “home”, which makes the employees and customers' loyalty to the company grow day by day, and constitutes a community of interests with employees and customers. The company's products have become the “national name brand” rooted in everyone's heart. In 2005, the company became the first batch of pilot units of the group's key personnel shareholding incentives. According to the performance and contribution, it can enjoy the real equity and dividend share, and combine personal interests with the company's development to make up for the dynamic mechanism of state-owned enterprises. The shortcomings effectively overcome the short-term behavior of the business.
─ Production advantage. According to the requirements of ISO9001 standard, Zhongnan Company systematically guarantees the continuous improvement and improvement of the quality of synthetic diamond. Under the circumstance of decreasing price, the quality grade of diamond climbs year by year, creating more value for customers. The advantages of production are reflected in the guarantee of raw materials, technical processes, equipment and personnel. The raw materials used by the company are high-quality raw materials provided by domestic and foreign fixed-point suppliers that have been repeatedly tested and proved to be effective in improving physical quality, ensuring the steady improvement of diamond quality. The company has established a research and development center, using various new technologies and new processes, and the average time is 1-3 years. The ultra-fine powder catalyst synthesis technology independently developed by the company is at the leading level in the industry. The company adopts system technology to ensure the steady improvement of product quality, and various synthetic components have been specially designed for integration testing for many years. In terms of equipment, the company's large tonnage presses account for more than 70% of the total domestic. The computer control and hydraulic system used by the company are independently developed and have a number of patented technologies. The company has advanced quality monitoring system and introduced many sets of advanced foreign equipment. The testing standards have been in line with international standards. In terms of personnel guarantee, the general manager of the company personally led the development team, and worked hard for many years. All the first-line workers were professionally trained. The graduates with college education or above accounted for more than 80% of the total number of employees. The high-quality personnel ensured the high quality of the products.
─ Marketing advantage. According to the consistent thinking of the company's leaders and the specific practice of the marketing team, the marketing work of Zhongnan Company has the following distinctive features.
The principle of "good faith". The company guarantees to all customers that they will never unilaterally abandon their promised obligations or responsibilities, and are willing to establish a longer-lasting mutual trust relationship with customers. Zhongnan Company has lost profits without damaging its business reputation. "Integrity-based" has been rooted in every employee's heart.
"Customer Satisfaction" strategy. Every measure taken by the company is to make customers more satisfied. The company focuses on the needs of customers, responds quickly, improves work at any time, and provides customers with more thoughtful, meticulous and perfect services to touch customers. Regardless of the customer's comments or suggestions, the company's marketing staff can be communicated to the company's leaders through multiple channels.
"Brand management" policy. After more than ten years of hard work, "Zhongnan Brand" diamond has won many honors such as "well-known brands in the industry", "high-quality products in the Central and South Province of China" and "national famous brand products". “Zhongnan Brand” has become the most valuable and potential brand in the superhard materials industry.
The concept of “creating value for customers”. The management leadership of the company puts the concept of “creating value for customers” and “achieving win-win” into the marketing work, and “helping customers succeed” by cultivating the downstream market through efforts to improve the quality and lower the price. Customers with development potential form a strategic interest alliance to jointly expand the industrial space.
─ Cultural advantage. The unique geographical location and entrepreneurial process have enabled Zhongnan Company to combine its history and future to form a unique corporate culture and values.
Promote the concept of "home". The company is a big family, so the work is enjoyable, life is beautiful, and communication is simple. Employees can work voluntarily and without compulsory management, because the company has established a fair and transparent performance salary system. With good work and good efficiency, you can get considerable income.
Think of "innovation" as the soul. Guided by the “innovative future”, the company dialectically distinguishes the boundaries between the implementation and innovation of the system, encourages everything to ask why, and can always have new ideas. The company attaches great importance to the pioneering spirit of front-line employees, encourages employees to carry out creative work, enjoys the joy of innovation, and makes the whole company show great vitality and vitality.
Building a "green industry." In order to strengthen environmental protection, the company has invested heavily in exploring specific ways to eliminate various pollutions, and has mastered advanced environmental protection technologies, enabling the company to maximize the social benefits while providing customers with quality services. At present, the company has achieved zero discharge of waste water, exhausted emissions, and listed the establishment of national environmentally friendly enterprises in the five-year plan.
"Revitalizing national industry." "Patient, love home" is an important moral concept advocated by the company. The company can develop to today, closely related to the great power generated by the revitalization of the national diamond industry and the strategic thinking of a century-old enterprise. Looking forward to a bright future, the company is willing to cooperate and compete with its peers around the world, and is committed to becoming the leading force in the world diamond industry.
─ Advantages of risk control capabilities. Since Zhongnan Company insists on the sales strategy of “one-handed money and first-hand goods”, there is basically no accounts receivable, so the company's financial risks are mainly in terms of investment and guarantee of payment ability. The basic countermeasures formulated by the company are: 1. To ensure that payment is the top priority of the company's sustainable development and implement the principle of sound management. 2. On the basis of strict implementation of the revenue and expenditure budget, promote the operation of funds as much as possible to maximize the turnover and appreciation of funds. 3. Strengthen the management of payment recovery to ensure that no bad debts occur and improve the vigilance of defending legitimate rights and interests. 4. Adhere to professional management, do not engage in diversified investment, and strive to make the main business bigger, stronger, and more refined.
It is these advantages that have formed the core competitiveness of Zhongnan Company, and laid a solid foundation for Jia’s words and words.
Going to the goal vision The goal is to generate motivation and ambition to drive motivation. In the interview with Zhongnan Company, the reporter can feel that there is a kind of future-oriented, international-oriented mind and the ambition and passion of making great things in the leadership team, especially the main leaders. Is this not a kind of development for the enterprise? Is it important to drive?
When talking about the future development, the leaders of Zhongnan Company told the reporter that the company is operating in accordance with the development ideas of the “Eleventh Five-Year Plan”. This development idea is to firmly establish the scientific development concept and realize the development speed and development. Under the premise of unification of quality and development benefits, the diamond will be further enlarged, strengthened and refined. While innovating the system and mechanism, it will enhance the ability of independent innovation, promote the level of technology, technology and equipment through the research and development of new products, and promote the development with scientific research. Through scientific and technological progress and cost management, we will further improve the cost performance of diamonds and achieve the "quality of diamonds and the price of glass". Constantly expand the application range of diamonds, while controlling the domestic market, strive to develop the international market, increase the international market share, and occupy the market of international diamond high-end products. Develop PCD, PCBN and other super-hard materials series products, lengthen the industrial chain, and gradually improve the product and service system. Through the "three steps" to achieve the global development goals, become the leading force in the international industrial diamond industry, and strive to be the pioneer of the group company's international business strategy.
During the “Eleventh Five-Year Plan” period, the company's key products mainly have the following items to be scaled: First, regular products will further expand market share for key competitors; second, large-scale high-grade diamonds will achieve large-scale production and expand the international market; The fine-grain high-grade diamond stable quality was put on the market; the fourth was the successful development and supply of diamond composite sheets and cubic boron nitride composite sheets, forming a relatively complete product pattern. The company will make full use of the technological process advantages to accelerate the industrialization and differentiation of high-grade diamond series products. The total investment amount of the “Eleventh Five-Year Plan” is equivalent to 2.5 times of the “10th Five-Year Plan” period. By investing in the basic research and application development capabilities of high-tech products, the number of diamond presses has reached more than 1,600, creating a world-class enterprise, becoming the world's largest, most technologically advanced, best quality, highest profit, and sustainable in the industry. The enterprises with the strongest development ability have the core capabilities and advantages that others cannot copy and imitate, and achieve the goal of leading the international superhard materials industry with the advantages of technology and management.
In 2008, the company's diamond products in the domestic market share to strive to reach more than 50%, the global market share to strive to reach more than 40%. Diamond and cubic boron nitride production and sales strive to reach 1.8 billion carats, its high-grade diamond production and sales to reach more than 500 million carats, sales revenue exceeded 800 million yuan, becoming the world's second strongest.
In 2010, the company's super-hard material series products in the domestic market share of about 60%, the global market share of about 45%. The production and sales volume of super-hard materials series should reach 2.5 billion carats, and its high-grade diamond production and sales should reach more than 800 million carats, and its self-operated export volume will reach 60 million US dollars. It will be an international enterprise with core competitiveness.
A thousand miles begins with a single step. The hard-earning journey of Zhongnan people in the field of super-hard materials for more than ten years to explore and innovate to break the monopoly of foreign countries is fascinating. The development prospects based on the global leadership of Liubianding Technology are worth looking forward to. In order to achieve the goal of strengthening and expanding the national diamond industry, the leadership team of Zhongnan Company is leading the company's employees to unite as one, in the aspects of technological transformation, capacity building, new product development, marketing, etc., in an all-round, solid, Careful and innovative work.

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