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Dawn of a New
Manufacturing Era in China

Executives Discuss Need to Move Past Old Approaches for State-of-the-art Tools, Processes

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Driven initially by its ability to deliver low-cost labor and materials, China has evolved to become the world’s largest manufacturing economy and one of the most competitive nations in the world.

Yet China is at a crossroads as it works to maintain its cost advantage and core low-cost production base while also building the more complex capabilities that are required for advanced manufacturing.

Executives that gathered recently at a TaeguTec customer seminar explained that the economic growth momentum that China gained in the past decade has weakened and that China needs breakthroughs to spur a new round of economic growth.

In response, TaeguTec showcased its newest, technologically advanced cutting tools to about 20 executives, machinists, managers and owners from China this spring.

“The products demonstrated at the seminar, I feel are very helpful for our business and I feel that they can help us save time and money,” said one owner of a medium-sized company that specializes in building packaging machines and equipment.


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Today’s China faces new challenges as economic growth slows, wages and other factor costs rise, value chains become more complex, and consumers grow more sophisticated and demanding, noted an executive of an auto parts company.

His colleague added that manufacturing growth is slowing more quickly and that the country is already losing some new factory investments to lower-cost locations, such as Vietnam, “This is sparking concern for China’s manufacturing competitiveness.”

The general consensus of those interviewed by TaeguTec Times, showed that companies in China need advanced cutting solutions that go beyond the easy and cheap ISO inserts and holders readily available in the market today.

“I am happy that TaeguTec holds these seminars, I get to see what is new and how they can apply to my cutting conditions,” said the auto parts owner.

Plant managers in domestic and multinational companies in China have worked hard to bring manufacturing-excellence tools and approaches to the country’s shop floors. But for all these efforts, plant managers in China often focus on “hard” technical tools at the expense of “softer” ones involving mind-sets and behavior.



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“This is a problem that I am happy that TaeguTec China rectifies. They work with us, no matter how long, to make sure that the tools we use follow the proper parameters. We create complicated shapes with difficult-to-cut materials so finding the right tool has been difficult with other cutting tool providers,” said the auto parts owner.

Another auto parts manufacturer echoed that sentiment and added that, “Yes, TaeguTec worked with us to find the right tool, in this case it was the RhinoRush which cut our machining cost by at least 20 percent.”

The packaging owner explained that he was really interested in the new developments of the TopDrill, “it was most impressive and we are ready to apply it right away as soon as I get back. I also really liked the ChaseMill Power 2PKT and the MillRush, these tools I plan to implement as soon as possible.”

One auto parts executive found that the MillRush, ChaseAlu and AluMill lines that were showcased at the demonstrations are ideal high-speed cutting solutions.

“What we need now are the best tools available so that we can increase our productivity and cut our machining cost,” he added. “This is what I found at this seminar and this is what I will be testing and implementing at our factories all over China.”



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TaeguTec is renowned for its specialist tungsten carbide cutting tools, tungsten powders, tungsten carbide rolls and industrial products. The specialist tooling engineers at TaeguTec are continually introducing innovative new methods of producing cutting tools for the metal cutting industry, to deliver some of the best cutting tool solutions to various market sectors such as the automotive, mold and die, aerospace and heavy industry sectors. For further information on TaeguTec products, please visit TaeguTec website www.taegutec.com

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