Opportunities will always remain severe challenge or the stumbling block to those who can not grasp them. By successfully grasping every chance for the enterprise, Shanghai KS succeeds in fulfilling its development by adhering to the technological renovation as the dynamo of growth.

Situated in Shanghai Changfeng Industrial District, Kolbenschmidt Shanghai Piston Co., Ltd. (KSSP) is a Sino-German joint venture between SAIC (50%) and the piston branch of Kolbenschmidt-Pierburg group (50%). It was founded in August 1997 .The total amount of investment is $29,800,000 while the registered capital reaches $22,000,000

KSSP supplies pistons to SVW, FAW-VW, SGM, Tianjin-Toyota, Changan-Ford, Dongfeng Cummins, etc.

The past six years since its foundation is uneven for KSSP. It is ephemeral in the long history. But to those who work in KSSP, it is full of hardship. Until now the company has achieved fruitful results which were the testimony of great efforts taken by Xu Deping, the general manager, and his followers.

The great change that has taken place in the past six years is “vicissitude”. Now let us look at the following statistics to illustrate it—

In the past six years, the output of pistols rise steadily from 1,800,000 to 4,500,000. The production capacity grows from 1,900,000 to 5,000,000. The sales revenue jumps from RMB112,000,000 to RMB 300,000,000. It has become the specialized company in producing high-tech pistons with high VAT by improving the product structure. The market share for auto pistons has grown every year and ranks top in China by taking up 46% of the share. At present, it supplies for the three major carmakers --SVW, FAW-VW, SGM. The overall index of economic turnover takes the lead in the industry. All dazzling statistics testifies to the fact that KSSP retains the leading position in the industry of piston for car engine.

The spirit of striving forward adds glory to the company. Those in KSSP come to the conclusion that the company can grow in line with the trend of development. It is crucial for KSSP to own the sense of chance (crisis), the foreseeing resolution to develop new products, flexibility and perseverance to work energetically. Just as Chen Xianglin, chairman of the board, has said, “Stick to the technological advance and beat up the intension way for development, which is the key to success. At the early stage since its establishment, the slogan of “Stick to the technological advance and beat up the new way for development” is the goal for KSSP. Under the principle of promoting market share and quality through technological and management innovation, KSSP has enhanced the overall strength to achieve the upswing in technology, production capacity and market.

To introduce technology is not simply to repeat it but to assimilate it to achieve the upgrading of technology. In the past six years, KSSP has successively introduced more than twenty advanced techniques, such as piston anode oxidation, graphite printing, salt-core piston, light-type piston. It has upgraded over 50 techniques and the rate of the output value of new products is 86%. The techniques of pistons in KSSP reach the international level. At the same time, KSSP has developed new products for such carmakers as SVW, SGM and FAW-VW and, as well as for such cars as SL, Buick and Santana to help the customers to develop new products and open up new markets.

Under the backdrop of reform an opening-up in China, there have been four big technical innovations, which are the milestones in the history of KSSP and its predecessor ---Shanghai Piston Factory, which are as follows:

The first production line for Santana pistons was set up in 1989. The   second one was set up in 1995 after innovation in other place. Three production lines for SGM, a new-type car, Perkins were built up in    2000. The most advanced full automatic piston production line in the world has been set up in 2003.

Of the four technical innovations, half of which are before the joint venture, every innovation attains the new height by upgrading technology.

At the end of 2003, KSSP introduced the most advanced full automatic piston production line to correct defects in quality (esp. artificial defects) and comply with product-processing in the future. The production line includes numerical control machining, vacuum pump, multistage processing, automatic washing and so on to satisfy the needs of customers for the high-tech pistons. Apart from KSSP, there are only two such lines in the world. It has realized the full automatic production, solved the perennial knotty problem of logistics and reduced artificial defects to meet the requirement of customers.

At the same time, KSSP establishes the new center for mold design &production to promote its R&D capability and meet the demand of customers to improve the R&D cycle of their new products. KSSP has introduced new technology of mould design & production and arranged three mold engineers to get training for six months in German KS Design Center. There they have accomplished the program for the new mould design on their own.

Last year, the KUS was in charge of developing the new product, LZC, for Shanghai GM. Later it was pressed for time and had to cancel the plan. In such situation KSSP accepted the challenge, for LZC is the new high-tech product that had to apply the new sophisticated technology of casting the top of piston. The three young mold engineers have taken great efforts to succeed in devising the first new mould in Shanghai KS center for mold design & production, which was supplied to Shanghai GM on time and won their applause. In order to achieve the trial production of a bifuel engine piston ---LPG , KSSP applied the three most advanced technology of  anodic oxidation , numerical control machining and eddy current measurement to fulfill the task for SVW.

A leap in production capacity

The rapid growth of auto industry highlights failure to supply auto parts on time which impedes the normal operation of carmakers. KSSP regards itself as part of auto industry chain and does their best to improve production capacity to meet the demand of carmakers by adopting technological innovation. By upgrading the production line, the technical department keeps improving the output capacity in unit time to promote productivity.

In the past years, through a series of technological innovation, every production line in KSSP is well-equipped while the numerical control system is serialized and put into currency in line with production of different types of pistons. It is possible to interchange and repair machines in time so that the loss from stoppage of machines is considerably reduced. In addition, KSSP has halved the time for the model change by introducing the advanced technology and machine.

All these meet the need of customers to supply products on time and put KSSP on the right track of sound development

A leap in the market

On the uneven way, KSSP has adhered to the principle of “market-oriented”, which is vital for the management system and the future development of KSSP. Since the establishment of KSSP, the decision-makers of KSSP have taken great efforts to meet the new demands of customers by upgrading new technology. Facing the fierce competition in the market, the sales department has gone out of its way to comply with the special needs of different customers by introducing different products and services under the leadership of the general manager.

KSSP has tried to succeed in the fierce competition through its technological prowess. In the autumn of 1998, when the general managers and the sales managers from both sides of KSSP pioneered the market in the North of China, they had to wait for several hours outside in such a cold day, for no one knew them. Until now, we have taken 26% market share. The dramatic change testifies to the fact we win the market by our strength of technology in the end. In 2000, When Dongfeng Cummins was still uncertain about the quality of pistons made by KSSP after three-month negotiation, the GM from the foreign side came to KSSP by himself to make the final decision. When he saw the advanced production line, he and his followers were astonished by the production capability of KSSP They were quite satisfied and made the agreement with KSSP.

The new idea of “striving for the market by technological innovation” not only satisfies the need of customers for the quality of products but also win the applause of their customers. KSSP has successively been named first-class supplier of SVW, SGM, FAW-VW, FAW group, Dongfeng-cummins, Chongqing Ford. In the past six years, the favorable market prospect has spread over before KSSP when it opens up more and more markets.

The New Blueprint

KSSP will adjust the allocation of production to realize the sustainable development in the future. By a new round of technological innovation, we will further improve the capacity to develop new products and ensure sufficient resources for its long-term development.