Possessing Core Manufacturing Ability
                                    Providing the Best Value for our Clients

                                    Complete manufacturing system
                                    Ensuring leadership in total cost

                                    Another major point in Michael Porter’s theory on competitive strategies is that concerning leadership in cost. Users’ perception is drawn only to prices, not costs, but leadership in total cost implies an enterprise’s ability to control its cost. Indeed it is one of the basic means for the enterprise to create value for users. Kaishan’s Seattle North America Development Center ensures that the company possesses world-leading research capabilities and deliverables. Naturally, the company should also establish a comprehensive and highly-capable manufacturing system to convert such research deliverables into first-class products.

                                    Having its products manufactured in China has enabled Kaishan to achieve perfect conversion of its research deliverables into products at significant cost advantage. Kaishan operates four manufacturing bases in Quzhou, Shanghai, Chongqing and Shunde in China and 85% of Kaishan’s products are manufactured in-house. The company’s scientific and effective management has enabled its complete manufacturing system to attain a rare competitive advantage in manufacturing, thereby consolidating its significant cost advantage.

                                    Manufacturing of screw unit is the
                                    core of our manufacturing

                                    To do a good job, one must first sharpen his tools. Only with top-notch manufacturing equipment would one be able to convert world-leading research deliverables into first-class products.

                                    The manufacture of screw unit is the core process in the manufacture of screw compressors. In fact, nearly 70% of Kaishan’s fixed assets are concentrated in this process. With more than 40 Mitsui machining centers in our company, we are the largest customer of Japan’s Mitsui Seiki in China. In addition we are equipped with 6 KAPP screw grinding machine at a cost of over RMB 20 million each, 6 Holroyd screw grinder, 4 Holroyd screw milling machine, 7 Hexagon triple-coordinate measuring instrument and a large amount of high-precision machine tools. All of them are ample indication of our company’s strength, and are important assurance of our company’s ability to consistently maintain first-class standards.

                                    R&D Labs and Test Equipment

                                    In recent years Kaishan spent several tens of million alone on the construction of laboratories. Laboratories are the condition precedent for product development by a first-class company, inasmuch as they are essential for the manufacturing of first-class products.

                                    Heat Treatment Equipment

                                    Heat treatment equipment gives assurance to a manufacturing enterprise’s basic materials. Kaishan has in place strict quality management system for its products from selection of raw materials, metallic processing and shipment of finished products from the factory. 85% of the parts are produced in-house. This ensures control of the raw materials’ quality. The company also ensures that processing techniques and processes meet the requirements set in design and manufacturing standards, by dynamic control and quality monitoring. In relation to the above the company has received certifications such as ISO9001:2008 (quality system), ISO14001:2004 (environmental management system) and GB/T200812001 (occupational safety and health management system).