Dalian Far East: Global High Speed ​​Steel Tool Leader

Who can think that in the roadside to the development zone, the ordinary private enterprise "Dalian Far East Tools" can not be ordinary, and the net worth has reached 1 billion, and it is the first "high chair" for high-speed steel tools.

Starting from 4,000 yuan, it has become the world's largest manufacturer of high-speed steel tool production and sales. When the economic crisis was most serious in 2008, it was “best in the world”. As the first enterprise to implement overseas mergers and acquisitions in Liaoning, it successfully acquired the European top three enterprise Vickers. The company and the world's largest tool company with more than 100 years of history, Greenfield, USA... When many people talk about their small fish eating big fish, this may be a trap. When many companies after mergers and acquisitions encounter crisis and can not afford, the reporter came This overseas acquisition is a private enterprise in Dalian that ranks among the high-end markets of high-speed steel tools in the world.

Acquisition of German customers
In 2008, this was a year of chilling for everyone. The financial turmoil in the United States swept the world. Of course, the Far East was also greatly affected, but when people couldn’t wait, the Far East was far-sighted. Timely adjustment of the course, focusing on the European and American markets, and proposed "overseas mergers and acquisitions", took the lead in seized the opportunity when the big wave became more and more fierce. It is also this historic decision that brought unlimited business opportunities to the Far East to write the legend of the Far East.

Although “overseas mergers and acquisitions” is the best way to save enterprises and develop enterprises, how to merge, what kind of enterprises to acquire, and which ones to abandon in the process, can the enterprise benefits and brands after mergers and acquisitions be improved? Regarding the mystery of mergers and acquisitions, Qi Shumin, the head of the Far East Group, talked to reporters.

The first overseas M&A company is the “Vick” company, a tool company in the top three in Europe. This company is a counterpart of the Far East and has always been a customer in the Far East. The situation is familiar and the investment is not big. The most important thing in negotiation is debt and originality. Labor issues. Qi said, "These two issues must be clarified in the initial negotiations." The most crucial thing is the timing. There are several companies that have merged with us at the beginning. The prices and conditions they set out. They are better than us, but the reason why they were acquired by the Far East was mainly because we were rushing. The first time was when the economic crisis was the most serious. In the face of the declining efficiency, your company has almost lost confidence. Second, we The funds for the negotiations are abundant. It is even more grateful to the leaders of the Dalian Municipal Government for their support and encouragement. It is their affirmation and support from the funds, which allows us to be confident in the negotiations. Before, there was a company that had already paid a deposit. Because of insufficient funds, the follow-up funds could not keep up, and finally had to give up. "

After the coordination and support of all parties, the Far East Group finally sold the German Vic Company with a low price of 9.2 million euros. The acquired company did not have any debt and labor disputes, starting from zero and going lightly.

In terms of personnel, the original company's debt and 380 employees were all left to the seller. Only 58 outstanding employees were selected from the original labor resources, and all sales personnel and sales channels were retained. This allows the new Vickers sales company to receive a day of work without a stop, and successfully achieve a stable transition for customers. In terms of production, 80% of production functions have been transferred to China, greatly reducing production costs.

This successful merger allowed the Far East Group to maintain the sales performance of the original Vickers at 380 people, even with the support of the Chinese headquarters, with only 58 German employees, supported by the Chinese headquarters, even in the worst economic crisis of the year of 2008. . In the crisis raging in 2009, the sales of the Far East tool of the main enterprise increased by 30% compared with 2008, which is a rare highlight of industrial enterprises in the country and even the world.

Acquisition of a century-old US company
Someone once said that "In any economic crisis, there will be some huge monsters falling down, while other silent people will rise quietly." This is the case in the Far East. The successful acquisition and integration of the German Vic company has brought a lot of valuable experience to the Far East Group. At this time, it is also the time when the economic crisis is the most serious. The world's first brand of high-speed steel cutter enterprises from the other side of the ocean, Green. "Thefield" also extended an olive branch to the Far East. With the accumulation of models and experience of the last acquisition, in the face of this brand enterprise with more than 100 years of history, the Far East Group still insists on its work on the labor force, and the negotiation process is fierce, and finally after three months. The slap in the face and the labor negotiations in the past month finally ended in June 2009, with the ultra-low price of 29 million US dollars to embrace this well-known enterprise that has been brilliant in the world tool industry for more than 100 years!

In this acquisition, Far East received eight world-renowned brands, $31 million in net worth inventory, 500,000 square meters of land, more than 80,000 meters of construction sites, more than 1,000 sets of advanced equipment, 18 advanced technologies and patents, and nearly 500 Loyal brand customers all over the world, 5 production and sales bases. At the same time, the reputation of the Far East has also risen. “Greenfield has brought us more brand enhancements that cannot be measured by value,” said Qi. “But the Far East Group, which has become the global high-speed steel boss, has no time to go to the carnival. For the acquisition of such a huge enterprise, after taking over, The integration is not to be relaxed for a moment.

Bringing traditional Chinese management methods to the US workshop
Once the new Greenfield Company was established, it organized a national conference to stabilize customers and the US channel and immediately began to integrate production functions. In terms of personnel, the successful incentive system of the Far East was introduced to New Greenfield, which reduced the number of 580 employees from the original company to 320, but the output capacity was twice as large; in terms of production, the "EQQ" management mode was creatively used. The original group production mode was transformed into a large group high-yield production mode, all the order classifications were integrated, and the similar machine tools of all processes were classified and integrated, avoiding frequent adjustments of machine tool marketing efficiency, so that large quantities of finished products were The packaging process can be used to screen shipments. Finally, the incentive system and EQQ are combined into one, and the individual and team with the highest EQQ value are rewarded separately, which not only greatly enhances the enthusiasm and creativity of the employees, but also the cohesiveness and combat effectiveness of the enterprise, and realizes the multiplication of production capacity.

Today, the new Greenfield has doubled its output and sales by half its staff, and its equipment and inventory have fallen by 40%. As of July 2010, it is also a year after the merger. The new Greenfield achieved monthly sales of $8 million, twice the initial $4 million sales.

These successful overseas mergers and acquisitions have rewritten the history of the Far East. In addition to the economic benefits brought by mergers and acquisitions, it has greatly enhanced the reputation and international influence of the Far East. The Far East has become a great pride of the Chinese industry and has carried more The responsibility of many companies has greatly promoted the development of new international markets.

But people are more concerned about how the future of the Far East will develop. When will the next miracle be? When the reporter asked Qi, he said, "To be quiet for two years, Greenfield is the world's largest high-speed steel tool enterprise, M&A. Although it is very successful, but wants to absorb and play its role more thoroughly, what we need to do next is to ask whether it is stable or steady, to do things, to speak with action, to improve quality, and to continue to discover new business opportunities when the time is ripe. Pick up new customers."

For today's achievements, many people may want to say that the Far East is fortunate to catch up with good times and get strong support from the government. However, there are not many people who can't help but feel the past. Five years ago, he had been there. The Greenfield factory in the United States visited and studied, but he waited for more than half a year to allow him to visit. Ten years ago, he also went to the German Vic company, but the marketing manager of the reception let him wait for ten hours at the door... At this point, we have to think about why the Far East can go to today, why is the Far East becoming the world's largest high-speed steel enterprise, in addition to the era of creation and timing, there is more worthy of our deep learning, the Far East is not arrogant Unsuccessful, persistent, pragmatic, pragmatic, relying on initiatives, relying on action, step by step every step. And a company with these qualities, how can we not believe that his future will be more brilliant!