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

When the financial storm hits the real economy, companies are beginning to face a "winter" test. Is it still acceptable for Changshan's bearing industry to take pride in its traditional manufacturing? Five months ago, SKF, a global leader in bearings, announced its acquisition of Pear Bearings USA and its production facilities in Xinchang and Changshan, China. Industry insiders suggested that this move marked the beginning of the "Three Kingdoms era" for Changshan’s bearing sector. On December 1st, during an interview in Changshan, the reporter observed that beneath the surface of this "Three Kingdoms" scenario, a new pattern was emerging—companies, government bodies, and research institutions were collaborating to eliminate inefficiencies and address key challenges. These included three major "bottlenecks" that lacked technical depth and suffered from serious technology gaps. **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 carefully prepared tankers for upgrades. "Other companies are cutting back, but we're hiring," said Wang Yun, Chairman of Zhongshang. The company settled in Changshan last July and completed a 60-mu automotive conversion base within a year. They plan to install equipment during the Spring Festival and start production after the holiday, aiming to 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 launched a 4S center in partnership with China National Heavy Duty Truck this September. Its strategic location has attracted major domestic truck manufacturers like FAW, Second Automobile, and Jianghuai Automobile to invest in the area. One executive proudly stated: “We plan to build five more 4S centers and become among the top five domestic truck brands. This will create a significant industrial transformation for Changshan’s bearing, auto parts, and processing industries.” **Keeping a Close Eye on Differentiated Competition** With the arrival of "wolves" in the market, how is Changshan Bearing Group, the industry leader, responding? According to the China Bearing Industry Association, "Stone" (a local brand) ranked among the top 30 in export sales in October. Originally built in 1967, it was one of only three bearing factories in Zhejiang before the 1980s. After property rights reform in 1998, the company grew rapidly, with assets reaching 300 million yuan in just a few years. Chief Engineer Xu Zhenzhuo noted that while SKF is a major player, "Stone" focuses on medium and low-end products worldwide. Differentiation is key to their strategy. Over the past years, the company has invested tens of millions annually in technical upgrades, achieving over 30 million sets of output and generating more than 200 million yuan in sales. “We have our own advantages, especially in tapered bearings,” he said. Despite being part of multinational giants, the changes at Peel Bearing are subtle. Lao Wang, a long-time employee, shared that the number of outgoing containers has decreased, and the workforce remains largely unchanged. He mentioned that while Shanghai headquarters representatives occasionally visit, they don’t register at the gate. On December 2nd, a senior executive told the reporter that major decisions are now made in Shanghai, and interviews require prior coordination. According to the county bearing industry development office, SKF has introduced new management ideas. “The original executives focus on production and supply chain, while Shanghai handles planning and funding. Additionally, the Shanghai headquarters is managing asset-backed loans, which could inspire others in the industry.” **The "Fresh Force" Ready to Go** “Customs clearance” depends on both companies and their employees, but the real driving force is the younger generation. Luoyang Bearing Technical School, the province’s first institution dedicated to training bearing technicians, has sent five teachers to teach in Changshan since last October. Chai Jidong, who recently returned from Yu Zhou, taught two courses to nearly 100 students, including "Bearing Ring Milling Technology." A local boss from Jinhua even sent relatives to attend, saying, “The technology here is more advanced than what I need. I want to learn to train cars and blacksmiths, then come back for more training.” A school official noted that 30% of graduates typically stay in the region, but as Changshan’s bearing industry grows, more students are likely to remain and contribute to the local economy. **About SKF** Founded in Sweden in 1907, SKF is a leading global supplier of 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 achieved annual sales of over 58.5 billion Swedish kronor.

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