Changshan Bearing Industry Demonstrates the Pattern of "Customs Clearance" in "Winter"

When the financial storm hits the real economy, companies are starting to face the "winter" test. Is it wise for Changshan's bearing industry to take pride in its traditional manufacturing? Five months ago, SKF, a global leader in bearings, announced the acquisition of Pear Bearings USA and its production facilities in Xinchang and Changshan, China—industry insiders refer to this as the beginning of the "Three Kingdoms era" for Changshan's bearing sector. On December 1, during an interview in Changshan, the reporter observed that beneath the surface of this "Three Kingdoms" scenario, a new pattern is emerging: collaboration between enterprises, government, and research institutions is working to eliminate inefficiencies. There are three major "bottlenecks"—small-scale operations with low technical content and insufficient innovation. **Heated "Chinese Business"** As the reporter entered the Changshan Industrial Park, Zhejiang Zhongshang Automobile Co., Ltd. was in full swing. Employees were undergoing training, and the refitting base was buzzing with activity, as workers worked nervously on tankers. “While other companies are downsizing, we're hiring more people,” said Wang Yun, Chairman of Zhongshang. The company settled in Changshan last July and completed a 60-mu automotive conversion base within a year. Equipment installation is planned for the Spring Festival, with full production expected after the holiday. At that point, the company will produce over 8,000 special vehicles annually, with sales reaching 2,000 units and revenue expected to hit 600 million yuan. In addition to obtaining national 3C certification and establishing a national automobile announcement system (with over 60 new vehicle announcements), Zhongshang also partnered with China National Heavy Duty Truck to open a 4S center in September. Its strategic location has attracted heavy truck giants like FAW, Second Automobile, and Jianghuai Automobile to invest in Changshan. “We plan to build five more 4S centers and aim to be among the top five domestic truck brands,” the company says. “This will create a new industrial revolution for Changshan’s bearing, auto parts, and processing sectors.” **Keeping a Close Eye on Differentiated Competition** With the arrival of the “wolf” in the form of global competitors, how is Zhejiang Bearing Group responding? According to the China Bearing Industry Association, “Stone” (a local bearing manufacturer) ranked among the top 30 in export sales and total volume in October. Originally established in 1967, the four-way plant was one of only three bearing factories in Zhejiang before the 1980s. After property rights reform in 1998, the company grew rapidly, reaching 300 million yuan in assets within a few years. Chief Engineer Xu Zhenzhuo explained that while SKF influences the industry, “Four-way” focuses on medium- to low-end products globally, emphasizing differentiated competition. The company has invested tens of millions annually in technical upgrades, achieving over 30 million sets in output and more than 200 million yuan in sales. “We have a strong advantage in tapered bearings,” he said. Although Changshan Peel Bearing has become a base for multinational players, changes are subtle. Lao Wang, a long-time employee, noted that the workforce remains stable, with few new faces. “The Shanghai headquarters comes often, but they don’t register at the gate,” he said. According to the county bearing industry development office, SKF has introduced new management ideas. “The original executives handle production and supply, while Shanghai handles planning and funding. They’re also managing bank loans secured by assets. This approach brings fresh thinking to the industry.” **The "Fresh Force" Ready to Go** The key to “customs clearance” lies in young talent. Luoyang Bearing Technical School, the province’s first specialized institution for bearing technicians, has sent five teachers to Changshan since being listed in October last year. Chai Jidong, who recently returned from Yu Zhou, taught two courses for nearly 100 students, including “Bearing Ring Milling Technology.” A local boss from Jinhua even sent relatives to attend classes. “The technology here is more advanced than what I need,” said Xiao Wang, a student. “I want to learn to train cars and blacksmiths, then come back to school.” A school official noted that 30% of graduates stay in Changshan, but with the growth of the bearing industry cluster, more students are likely to find jobs locally next year. **About SKF** Founded in Sweden in 1907, SKF is a global leader in rolling bearings and related technologies. With over a century of expertise across five platforms—bearings, seals, lubrication systems, mechatronics, and services—SKF has evolved into a knowledge-based company. In 2007, the company reported annual sales exceeding SEK 58.5 billion.

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